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Scott Stinson: Ontario to sign critical minerals 'partnership' with U.K. to combat Chinese influence
The Ontario government will sign an agreement with the United Kingdom on critical minerals on Monday that is meant to combat Chinese dominance of the sector, National Post has learned.
Stephen Lecce, the province’s minister of energy and mines, is in London to sign the statement of intent with Chris McDonald, the U.K.’s minister of industry.
Doug Ford’s Progressive Conservative government has been pushing to make inroads with various U.S. states and foreign governments amid uncertainty over the future of the North American free-trade agreement that U.S. President Donald Trump has repeatedly said he does not want to renew. Last week Prime Minister Mark Carney, who is in Europe this week for G7 meetings, encouraged Canada’s premiers to try to drum up business on their own while federal negotiators try to find common ground with an unpredictable White House.
To that end, the agreement between Ontario and the United Kingdom will see both governments work together to “build secure, resilient, and integrated” supply chains for critical minerals like lithium and cobalt that are used in modern tech manufacturing, according to a draft statement that was obtained by the Post.
“With China’s monopoly over global critical minerals producing about 60 per cent of raw ore and controlling up to 90 per cent of refining capacity for rare earths, lithium and cobalt, countries must work to reduce dependence on unstable foreign sources and build resilient supply chains that upend this geopolitical dominance,” the statement says.
Last week Ford announced a similar deal — essentially a pledge of future co-operation — with Josh Shapiro, the governor of Pennsylvania, in a ceremony at Queen’s Park. That pact pledges increased trade and business ties in industries such as automobiles and aviation, but like the one that will be announced with the United Kingdom on Monday, does not contain specific dollar commitments.
When the Pennsylvania agreement was announced, the premier said Carney had encouraged his provincial counterparts to “build relationships” with U.S. senators, governors and members of Congress. Foreign governments would also complement that strategy.
Ontario contains “significant deposits of nickel, lithium, cobalt, graphite, copper and rare earth elements,” the government statement says, “which are essential inputs for batteries, electric vehicles, advanced manufacturing, defence technologies and modern energy systems.”
The Ring of Fire, a massive critical minerals deposit in the province’s far north, has been considered a key resource since it was first discovered two decades ago, and Ford told a Toronto mining conference in March that there has been significant progress on making it accessible. Construction on roads should begin this summer, the premier said.
The provincial and federal governments have both passed laws that enable them to fast-track projects that are seen as important economic drivers amid Trump’s trade wars, but Ontario has not had to use those powers in the Ring of Fire yet.
“We need critical minerals for the phones we use to the cars we drive, and this new partnership with Ontario shows our commitment to building resilient supply chains with allies as demand for these vital minerals continues to rise,” said McDonald, the U.K. minister, in the Ontario government statement.
“In a world where economic security is national security, trusted allies must work together to secure the minerals that power our economies, strengthen defence capabilities, and support the jobs of the future,” said Lecce in the same statement.
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