Mexico's president 'backs up' solar energy to promote renewable energy development

Mexican President Andres Manuel Lopez Obrador has risen to outline his goal of transforming an agricultural state in northwest Mexico into a green energy hub, with US climate envoy John Kerry due to visit the country later this month.

Plans are focused on expanding solar and lithium capacity in Sonora, and Lopez Obrador said he hopes to meet with US climate envoy Kerry at a solar plant under construction at the coastal port of Puerto Penasco in Sonora state.

Lopez Obrador said the plan envisages the construction of four to five new solar plants, all of which will have the same capacity as the Puerto Penasco plant.

"It is a comprehensive plan in which all the agencies of the federal government" will be involved. The plan also includes efforts to develop Mexico's lithium industry and the Sonora electric car industry, which the Lopez Obrador government nationalised this year.

Mexico is the leading car manufacturer in Latin America and the government wants to increase sales of electric cars to 50% by 2030, up from the current 5%.

Lopez Obrador also mentioned plans to build a battery production plant, but did not specify which type of battery.

Lithium batteries are a key component of electric vehicles. Currently, no country in Latin America produces lithium batteries commercially.

Mexico's energy policy has sparked the most serious trade dispute with the United States in years. Washington has accused the Lopez Obrador administration of taking measures that discriminate against American companies.