Rare earths and critical minerals

Despite significant rare earth/critical mineral resources, Mexico is seen as making a slower start in attracting foreign investment into the sector, placing it behind Brazil and Argentina. State control of lithium, along with underdeveloped mining regulations and underexplored deposits are imposing some restrictions and delays. Industry sources say the 2023 mining law amendments have created uncertainty and slowed or discouraged exploration and development of rare earths. This could cause projects to be postponed at a crucial time. The problem is accentuated because most rare earth projects are complex and can take up to ten years or more between conception and coming on stream. In terms of refining and processing, Mexico still lacks large scale separation plants, advanced refining capacity, and magnet manufacturing facilities.