Mexico and United States to Cooperate on Semiconductors and Electric Vehicle Production

The Biden administration is investing massively in semiconductor production. The United States is now cooperating with Mexico on that front and expanding the production of electric vehicles through Mexico's nationalized lithium industry.

It aims to promote production in North America and close the gap, as Asia currently has the advantage in semiconductors and batteries, which are important components in the manufacture of electric vehicles.

This was one of the main topics discussed as part of the High-Level Economic Dialogue during U.S. Secretary of State Antony Blinken's visit to Mexico City on Monday. Blinken said Mexico already has "major elements of the semiconductor supply chains" well established in the country.

U.S. Secretaries Spoke to President Andres Manuel Lopez Obrador About Opportunities For Mexico

Another top Biden administration official came with Antony Blinken on his Mexico City trip, and she was U.S. Commerce Secretary Gina Raimundo.

Raimundo and Blinken spoke to Andres Manuel Lopez Obrador and told him there were opportunities in recently passed U.S. legislation. This includes about $28 billion in incentives for semiconductor production, $10 billion for new manufacturing of chips, and $11 billion for research and development.

Blinken further noted that American companies such as Intel and Skyworks were already conducting research and development, design, assembly, and test manufacturing in several places in Mexico.

As for Mexico, the president also has some pretty big plans. According to the Associated Press, Lopez Obrador plans to make the state of Sonora a leader in lithium, electric vehicle, and solar energy production.

A key component of the batteries of electric vehicles is lithium. The Mexican president has admitted that he already discussed this idea with President Joe Biden in their previous meeting.

According to Reuters, Mexico's Foreign Minister Marcelo Ebrard was optimistic that a deal could be made between the two North American countries.

Mexico Welcomes Washington's 'New Tone' After Energy Row

The dialogue on semiconductor production started between the two countries in 2013, under the Obama administration, with then-Vice President Joe Biden launching it. However, it was stopped during the Trump administration and only resumed last year.

There had been an energy row between the U.S. and Mexico when Andres Manuel Lopez Obrador decided to tighten state control of the energy market. The Biden administration argued that this was unfair to U.S. companies and likely breached a regional trade deal.

However, Mexico's Economy Minister Tatiana Clouthier noted that the two governments were working to fix that dispute. The Mexican president had been defiant towards the United States and said he would defend Mexico's position on energy.

However, Lopez Obrador backtracked, noting that he would no longer talk about the dispute. He claimed Biden "responded to his concerns positively." Lopez Obrador welcomed this "new tone" over the energy dispute on Monday.

According to VOA News, the Mexican president said there had been a more respectful attitude from the Biden administration, and it reaffirmed Mexico's national sovereignty.

This article is owned by Latin Post.

Written by: Rick Martin

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