MEXICO CITY (Reuters). Mexico has announced that it is working with Chilean, Bolivian and Argentina governments to form a lithium consortium so they can pool their resources to explore the resource.

We’re going work. Lopez Obrador said that the two of them are working on new technology, as well as exploration and development.

According to recent data from the United States Geological Survey, Argentina, Chile, and Bolivia sit on top of what is known as the “lithium triangle,” which contains nearly 56% the world’s metal resources.

Mexico doesn’t have commercial lithium production. However, it does possess potential lithium deposits which, if economically viable could lead to major producer status.

Its Congress approved a bill last month to nationalize the iron, tightening the control over strategic mineral resources. Lopez Obrador stated that he would examine all existing contracts for the extraction of the metal.

Nearly a dozen Mexican companies hold mining concessions that allow them to prospect for lithium. This includes permission to prospect in the country’s largest project Bacanora Lithium. It is managed by Ganfeng Lithium Company, a Chinese company.

International Chamber of Commerce branches argue that law nationalizing country’s future lithium industries violates international trade obligations. This could lead to costly consequences for government, if mining firms seek to recuperate losses.

Due to the global shift toward electric vehicles, metal prices are experiencing a boom. This has driven huge demand for carmakers and batteries firms in order to increase supply.

Chilean Mining Minister Marcela Hernando stated that Chile already takes part in Latin American projects for collaboration in science, technology and knowledge exchange.

According to USGS data Chile is third in the world for lithium resources and the second largest producer. Bolivia however has little production, even though it has more than any other country.

Argentina, for its part, is fourth in lithium production worldwide. Argentina wants to increase development speed, which has been hampered by long-standing red tape and high taxes.