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U.S. Looking To Canada For Lithium And Other Minerals To Build Electric Vehicles

The U.S. government is working to help American miners and battery makers expand into Canada, part of a strategy to boost regional production of minerals used to make electric vehicles and counter Chinese dominance. Recently, the U.S. Department of Commerce hosted a closed-door virtual meeting with miners and battery manufacturers to discuss ways to boost Canadian production of EV materials.

The move comes as demand for electrified transportation is set to surge over the next decade. Conservationists have strongly opposed several large U.S. mining projects, leading officials to look north of the border to Canada and its supply of 13 of the 35 minerals deemed critical for national defense by Washington. Tesla, Albemarle, Talon Metals and Livent were among the more-than 30 attendees at the meeting who discussed ways Washington can assist U.S. companies expand in Canada and overcome logistical challenges, according to the documents. The event comes after U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau committed last month to building an EV supply chain between the two countries. Since Biden’s election, three U.S. mining companies have invested in Canada, where mining accounts for 5% of the country’s gross domestic product, versus roughly 0.9% in the United States.

An article in media said that: “”The United States is really taking this seriously,” said an industry CEO. Lithium-ion batteries are dangerous to transport over long distances, so automakers prefer to have them built near assembly plants. That should aid efforts by Ontario and Quebec to develop their own battery cell plants with both provinces close to U.S. automakers in Michigan and Ohio, industry executives said. To be sure, the United States is also trying to boost domestic production of EV metals, which the Biden administration has said is critical. But Washington is increasingly viewing Canada as a kind of “51st State” for mineral supply purposes and plans to deepen financial and logistical partnerships with the country’s mining sector over time, according to a U.S. government source. “You’re beginning to see Canada become an important part of the North American EV supply chain,” said Keith Phillips, CEO of Piedmont Lithium Limited.