Mexico’s state-owned oil company, Petróleos Mexicanos (Pemex), is at a crossroads. The company, which has long been the backbone of Mexico’s economy, is now facing a critical juncture as it navigates the challenges of a rapidly changing energy landscape.
Shifting Gears
Pemex’s corporate planning director, Jorge Alberto Aguilar, revealed during the company’s first-quarter 2025 financial review that Pemex is undergoing a significant transition. The company plans to diversify its energy portfolio by exploring new projects, including renewable energy sources like solar, wind, and biomass. This move is part of Pemex’s efforts to rebrand itself as “Pemex Energía,” a more sustainable and modern energy company.
The company’s plans include:
- Continuing to produce hydrocarbons
- Exploring new energy sources like solar, wind, and biomass
- Developing projects focused on renewable energy and lithium production
Lithium: A Key Component
One of Pemex’s key initiatives is lithium production, particularly from oilfield brines. However, experts warn that extracting lithium from these brines can be challenging due to the low concentrations of the mineral. Armando Alatorre, a geologist with expertise in lithium extraction, notes that finding a cost-effective method to separate and store lithium is crucial. He estimates that it may take up to 25 years to see significant progress in this area.
Alternative Paths
If the lithium project doesn’t pan out, Pemex has other options on the table. The company is exploring alternative renewable energy projects, including:
- Geothermal energy, which could produce up to 10,000 megawatts per year
- Using offshore platforms to generate electricity, potentially through solar or wind power
- Leveraging over 15,000 unused wells in states like Campeche, Nuevo León, and Veracruz to generate renewable energy
However, Pemex’s financial constraints, including a significant debt and reduced oil production, may hinder the company’s ability to invest in these projects. As Mexico looks to the future, the question remains: will the country be able to shift its energy strategy away from hydrocarbons, or will it continue to rely on traditional sources?