Mexico currently has no commercial lithium production, but according to some estimates contains potentially lucrative deposits trapped in clay-based soils.

The testing confirmed there are four primary intersections of interest, designated in pairs.

The plan, set to be officially filed in the Federal Register on Thursday, would "not have a significant economic impact" on the mining project.

Carmakers are working to secure supplies of materials from lithium, nickel and manganese for batteries to magnesium for car components as they race to ramp up electric vehicle production.

The auction, initially planned for 2018, has been repeatedly postponed due to concerns over the environmental and social impact of lithium mining.

A proposal that opens the door to nationalizing some of the biggest copper and lithium mines in the world was approved in first instance.

Persistent hikes in raw material costs have been weighing on automakers for a while now.

Fortescue reported a 20% rise in costs over the past 12 months, driven in part by increased labor overheads.