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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid global efforts to diversify critical mineral supply chains away from China, Canada and Japan are exploring joint projects in the sector. According to Canada's Minister of International Trade Maninder Sidhu, speaking to Reuters, the two countries are considering cooperation in critical mineral projects and potential joint stockpiling to reduce China's dominance. Sidhu stressed that the talks are preliminary with no binding agreements yet.
This move comes as China controls roughly 85% of global rare earth processing, according to International Energy Agency data, making it the dominant player in supply chains. Canada holds significant reserves of critical minerals like lithium and cobalt, while Japan relies heavily on imports for its tech industries. The potential cooperation could strengthen secure alternatives to Chinese dependence, especially amid rising geopolitical tensions.
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Sign InTraders will watch for any formal agreements or concrete steps from the talks, though no timeline has been set. Any tangible progress could boost market confidence in Western allies' ability to diversify supplies. On the economic front, Canada's latest inflation data showed an annual rate of 3.2% in June, which may influence trade policy priorities. Meanwhile, China's continued dominance in critical minerals remains a key catalyst for such partnerships.