Canada Plans Joint Critical Mineral Transactions with Allies Amid China Export Restrictions
Canada is exploring partnerships with its allies to potentially fund critical mineral transactions, following a model similar to the U.S. government’s collaboration with MP Materials, Energy and Natural Resources Minister Tim Hodgson told Reuters on Tuesday.
The focus will be on minerals affected by China’s export restrictions, which have disrupted the production of essential mineral products in G7 and NATO countries.
“I think you’ll see us looking at similar types of transactions, working with our allies,” Hodgson said.
“The difference from the MP Materials deal is that all of the output there goes to the United States. We are interested in partnering with our allies to share the output.”
MP Materials announced on July 10 that it had entered a public-private partnership with the U.S. Department of Defense to develop a domestic rare earth magnet supply chain and reduce foreign dependency, setting a precedent Canada may now follow.
Canada’s approach signals a growing effort among Western nations to diversify supply chains for critical minerals and reduce strategic reliance on China.
About the Author
