Canada has announced investments in critical minerals and partnerships with allies as part of a $4.6 billion project development race, a move Ottawa says is aimed at countering China's dominance of global trade.
Points of attention
- Canada's $4.6 billion investment in rare earth metals aims to reduce dependence on China and bolster global trade.
- Strategic partnerships with allies and participation in international alliances secure Canada's position in the essential minerals market.
- Investment in metals production is part of a broader strategy to boost defense spending and stimulate economic growth in Canada.
Canada wants to bypass China: what is known
Canadian Energy Minister Tim Hodgson said Ottawa would use the War Production Act to build up reserves of essential minerals, a move the United States has previously taken.
G7 leaders met in Toronto to create a so-called buyers' club within the alliance for essential minerals, which seeks to restore a multilateral approach at a time when Australia and Japan have struck deals with the United States to supply rare earths.
At the same time, Canada is trying to position itself as a key supplier to Western economies, which are increasingly concerned about China's dominant position in the supply of rare earths and critical minerals.
Canada's investment in key minerals is part of an increase in defense spending within NATO, which US President Donald Trump has criticized as too low.
It is noted that the Norwegian company Vianode will build a multi-billion dollar synthetic graphite plant in Ontario to supply anode materials for electric vehicle batteries, and Rio Tinto's scandium plant in Quebec has also received multilateral support.
Under the agreement, Canada guarantees to buy producers' products at a pre-set price, helping to ensure a return on investment. Ottawa also seeks to stimulate the extraction of more important minerals in a number of Canadian deposits.
