Canada has announced the first 25 investments under a G7 critical minerals production alliance envisioned as a counterweight to China's dominance in the sector.
The investments include purchase agreements for a Quebec graphite mine and investments to scale up a rare earth elements refinery in Ontario.
Energy Minister Tim Hodgson also says Canada has taken steps to begin stockpiling some critical minerals it deems essential to its defence and national security interests.
China has wielded its dominant critical minerals position to tighten export limits and apply pressure in trade talks, ratcheting up pressure on G7 countries to diversify their supply.
Hodgson says the G7 alliance's first initiatives should be seen as a clear signal the group is serious about reducing market concentrations, safeguarding national security and driving investment.
He also announced Canada is backing a Norwegian company's plan to build a synthetic graphite plant in St. Thomas, Ont., with up to $500 million in potential financing from Export Development Canada.
The company, Vianode, announced in January it had signed a multi-billion-dollar supply deal with General Motors for its electric vehicles.
Picture Courtesy: THE CANADIAN PRESS/Laura Proctor
