Canada prohibits the sale of rare earths to China

The decision by Canada to block the sale of rare earth elements to China marks a significant shift in its approach to critical minerals and national security. With China’s domination in the sector, Ottawa is taking steps to reduce foreign reliance and develop secure domestic value chains.

This move comes as part of a broader crackdown on Chinese investment in Canada’s mining sector, with Resources Minister Jonathan Wilkinson facilitating a deal to keep the materials in Canada and construction of processing facilities by the Saskatchewan Research Council for $3 million.

Rare earth elements are essential for electric vehicles, wind turbines, and other technologies, making them crucial for Canada’s decarbonization plans. The country’s strategy includes imposing investment and export restrictions primarily targeting China, while incentivizing local mining and the construction of new battery plants.

Industry Minister Fran�ois-Philippe Champagne’s order for Chinese resource companies to sell their stakes in Canadian critical mineral firms and the thwarting of Montreal-based SRG Mining’s redomiciling to the UAE exemplify Canada’s firm stance on foreign investment in the sector.

The decision to intervene in the rare earths sale signals a prioritization of national security and economic autonomy. Canada is taking proactive steps to ensure the stability and sustainability of its critical minerals supply chain, emphasizing the importance of domestic production and control over these strategic resources.