Mexico plans to establish a state-owned lithium mining company, with President Andrés Manuel López Obrador saying that lithium mining should be done by the government, The Associated Press reported Feb. 3.

López Obrador also suggested that he might cancel the permit of Ganfeng Lithium Co. Ltd. and Bacanora Lithium PLC's Sonora, which is the country's only viable private lithium mine, according to the report. The mine, located in the northern state of Sonora, is scheduled to begin production in 2023, The Associated Press said in the report.

López Obrador intends to have lithium declared as a "strategic mineral" reserved for the state, with the change contained in legislation that has been sent to Congress, the report said.