Canada orders Chinese companies to sell lithium assets

Ottawa: Canada has ordered three Chinese companies involved in the mining business in the country to sell lithium mining assets. The government said investments of any size will be allowed on a “specific basis”. The Government of Canada has set restrictions for foreign companies engaged in the supply of “vital metals” used in batteries and other high-tech products.

Canada’s order comes at a time when western countries and China are locked in a standoff over control over the resources of lithium, cadmium and other metals used in mobile phones, wind turbines, solar cells, electric cars and other emerging technologies. Chinese mining companies are investing in production in Africa, Latin America, Canada and elsewhere as the ruling Communist Party continues to promote the development of electric cars, clean energy and other tech industries.

Innovation Minister Francis Philippe Champagne last week announced sanctions on foreign-owned companies engaged in mining/production of “critical metals”. He had said investments of any size would be allowed only on a “specific basis”.