Mentioned in dispatches... March 18 (Reuters) - 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 competitors.
On Thursday, the U.S. Department of Commerce held a closed-door virtual meeting with miners and battery manufacturers to discuss ways to boost Canadian production of EV materials, according to documents seen by Reuters.
A source who attended the meeting said there was no indication that the Commerce Department would offer financial incentives for new mines or other supply chain components in Canada.
But department officials did stress the need to act now to build a U.S.-Canada EV supply chain, much like Europe has been doing and Asia has already done, according to a second source who attended the meeting.
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 Inc TSLA.O, Talon Metals Corp TLO.TO and Livent Corp LTHM.N were among the more-than 30 attendees at Thursday's meeting who discussed ways Washington can help U.S. companies expand in Canada and overcome logistical challenges, according to the documents.
The U.S. Department of Commerce did not respond to requests for comment.
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Canadian firms are also able to apply for U.S. government grants under the U.S. Defense Production Act and other U.S. funding programs. There are no U.S. tariffs on Canadian EV battery metals or EV parts.
"You're beginning to see Canada become an important part of the North American EV supply chain," said Keith Phillips, CEO of Piedmont Lithium Ltd PLL.AX, which in January bought 20% of Sayona Mining Ltd SYA.AX, a developer of a Quebec lithium project.
Canada's First Cobalt Corp FCC.V is building the continent's only cobalt refinery, part of an effort to wean the EV industry off supplies from the Democratic Republic of Congo, where child labor has been used. Cobalt is used to make battery cathodes.
Adding to the appeal of Canada, some of the country's mines bill themselves as environmentally friendly and promise to use hydroelectric power to reduce their carbon emissions.
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https://www.nasdaq.com/articles/exclusive-u.s.-looks-to-canada-for-minerals-to-build-electric-vehicles-documents-2021-03-0