Canada drives Chinese companies out of lithium mines

Il Canada caccia le aziende cinesi dalle miniere di litio thumbnail

Il Canada has ordered three Chinese companies to forgo investments in lithium mines on Canadian soil, a type of investment that the China is leading around the world. In fact, the “rare minerals”For the construction of batteries for technological devices and electric cars are becoming increasingly strategic and profitable. Canada has decided to define them “critical minerals”And prevent foreign investment. Taking the first step towards what some commentators call the “Born of metals “.

Canada prevents China from investing in lithium mines

Canadian Minister of Innovation Francois-Philippe Champagne has signed a law that prevents foreign companies from doing what he deems “critical minerals”. The minister explained that investments, of any size, they will only be approved on an “exceptional basis”.

A decision that seems to be directed directly against Beijing, which has been investing for years in mineral and rare earth mines in Africa, America Latina e Canada. The Communist Party of China considers the lithium and the cadmium batteries, as well as other metals such as silicon for chips and various other components of solar cells, electric cars and high-tech products, a strategic investment. And for months now, the tension between China and the West over the control of these resources has been rising. Especially because after the gas crisis following the sanctions on Russia for the invasion of Ukraine, the NATO countries they don’t want more supply chain problems due to geopolitical issues.

The Chinese answer

The Chinese government has harshly criticized Canada, demanding that the legislation change. For the spokesman of the Ministry of Foreign Affairs Zhao Lijian, the freedom of the market is involved. “Canada has expanded the concept of national security and placed barriers to normal investment and commercial cooperation between Chinese and Canadian companies. We urgently need Canada to stop this unjust suppression of Chinese companies and instead we ask that they provide a fair, honest and non-discriminatory environment for their operations. ”

But Canada doesn’t seem to want to listen. The Hong Kong company Sinomine Rare Metale Resources had to sell its shares to Power Metals Corp., which is based in Vancouver. The Canadian company will have to mine for lithium, cesium and tantalum in the Canadian province of Ontario.

Instead Chengze Lithium International Ltd. had to divest from Lithium Chile Inc., which is based in Calgary but excavates in Chile. Zangge Mining Investment had to sell to the Vancouver company Ultra Lithium Inc. its shares for projects in Canada and Argentina.

A Born of Metals

This decision marks a decisive step towards what the analyst is Andy Home calls NATO Metallica (via Star Magazine), an alliance wanted by the United States and the Allied countries (including the European Union).

An economic reality that took the official name last June of Partnership for the safety of minerals. And he sees nations rich in rare minerals such as Canada and Australiatogether with countries that they produce batteries like South Korea and Japanin addition to the United States, the United Kingdom and several European countries.

The mining and semi-finished market for technology products (from electric car batteries to iPhone batteries) is becoming less global and more divided into politically polarized spheres. With potentially huge effects on the technology we now use every day.