Canada's Critical Minerals Collaboration
Canada is exploring funding strategies with allies to support critical mineral transactions, aiming to reduce dependency on China's export restrictions. The initiative follows the U.S.'s partnership with MP Materials to develop a domestic rare earth supply chain, and Canada seeks similar partnerships to share resources with allies.
In a strategic move to diversify its critical mineral supply chain, Canada is collaborating with allies to potentially fund transactions similar to the U.S.'s partnership with MP Materials. Energy and Natural Resources Minister Tim Hodgson highlighted the importance of minimizing dependency on China's mineral exports during discussions with Reuters.
Key minerals facing China's export constraints are targeted, which pose challenges for G7 and NATO countries' production capacities. Hodgson emphasized the strategy involves engaging with international partners to not only replicate but expand on the U.S. model with MP Materials. Unlike the MP Materials deal delivering all output to the United States, Canada's initiative aims for distributive partnerships.
MP Materials had announced a public-private partnership with the U.S. Department of Defense to establish a domestic supply chain for rare earth magnets, addressing the critical issue of foreign dependency. Canada's approach intends to establish a similar framework with allied nations to bolster mutual mineral resources and strengthen global supply networks.
(With inputs from agencies.)
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