Ottawa seeks to cut China out of Canadian critical mineral industry

Champagne's order comes less than a week after he said Canada would be limiting the involvement of foreign state-owned companies in the industry.

After a national security review, Innovation Minister Francois-Philippe Champagne is ordering three Chinese resource companies to sell their interests in Canadian critical mineral firms.

Champagne’s order comes less than a week after he said Canada would be limiting the involvement of foreign state-owned companies in the industry.

Critical minerals and metals, such as lithium, cadmium, nickel and cobalt, are essential components of everything from wind turbines and electric cars to laptops, solar panels and rechargeable batteries.

China is the dominant player in critical minerals refining and processing, as well as the manufacturing supply chain of battery cell components.

But China does not produce a lot of the minerals, and has instead invested heavily in overseas mines in places like Canada to acquire the raw materials it needs.

Canada and its allies are desperately trying to upend China’s dominance in the field and create a supply chain that relies on what it calls more stable and reliable partners.

“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad,” Champagne said in a written statement late Wednesday.

The Investment Canada Act subjects foreign investments to review for national security concerns and Champagne said critical mineral investments get “enhanced scrutiny.”