LCM backs Cadence in Mexico lithium treaty fight

LCM is funding an arbitration claim brought by Cadence Minerals plc against the United Mexican States, bolstering its position in a high-stakes dispute tied to Mexico’s lithium nationalization and the cancellation of concessions at the Sonora Lithium Project.

The funding will cover Cadence’s legal fees and disbursements under an agreed budget, enabling the company to advance its claim under the UK-Mexico Bilateral Investment Treaty without deploying additional balance sheet capital. The dispute centers on alleged breaches of investor protections following Mexico’s move to assert state control over lithium resources, a policy shift that has triggered multiple investor-state claims.

Cadence contends that the cancellation of its mining concessions, which were tied to its interests in the Sonora Lithium Project, constitutes unlawful expropriation and a failure to afford fair and equitable treatment under the treaty.