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China's Ganfeng files arbitration versus Mexico over lithium deposit

China's Ganfeng and 2 of its units aiming to establish a lithium job in Mexico registered an arbitration case against the Mexican federal government over the mining concession, according to the World Bank's. conflict settlement center.

The post by the lending institution's International Centre for Settlement. of Financial Investment Disagreements (ICSID) on its website was dated Friday,. and lists the case, submitted by Ganfeng International Trading,. Bacanora Lithium and Sonora Lithium, as pending.

Shanghai-based Ganfeng is a leading global battery maker and. lithium miner.

The case centers on Mexico's most sophisticated lithium mining. job, located in northern Sonora state, and follows. legislation championed by Mexican President Andres Manuel Lopez. Obrador that nationalized the country's nascent lithium sector. in 2022.

The nationalization enables private companies to make use of the. metal however only in partnerships with upstart state-owned miner. LitioMx.

There is no industrial production in Mexico of the. ultra-light white metal longed for by rechargeable battery makers. The market is controlled by miners in Australia, Chile and China.

The concessions would have allowed the company to develop. the Sonora lithium project, but were canceled by mining. authorities in August, arguing that Ganfeng had failed to comply. with minimum investment requirements.

Last November, China's Ganfeng Lithium Group. stated Mexico's economy ministry promoted the cancellation.

Ganfeng obtained the site's preliminary developer Bacanora in. 2021, however more than a decade has actually passed because Bacanora obtained. the Sonora mining concession.

Bacanora, Ganfeng and Mexico's economy ministry did not. immediately react to ask for comment.

(source: Reuters)