Canada and Japan deepen critical minerals partnership to reduce reliance on China
Canada and Japan are expanding cooperation on critical minerals as both countries seek to build more secure supply chains and lessen their dependence on China, according to Canada’s International Trade Minister Maninder Sidhu.
In an interview, Sidhu said officials from Ottawa and Tokyo are discussing several areas of collaboration, including joint mining ventures, long-term supply agreements, and the possibility of creating shared stockpiles of strategic minerals such as graphite and gallium.
He said Canada is positioning itself as a reliable partner capable of supplying Japan with the critical minerals needed to support its industrial and technological sectors.
As an example of the growing relationship, Sidhu highlighted the supply agreement between Canadian producer Nouveau Monde Graphite and Panasonic, under which graphite is provided for use in battery manufacturing.
The minister is currently leading Canada’s largest-ever trade mission to the Asia-Pacific region, with nearly 300 delegates representing close to 180 businesses and organizations participating in meetings across Japan.
Japan has accelerated efforts to diversify its sources of rare earths and other essential minerals, joining other Western nations in reducing exposure to China’s overwhelming dominance of global production and processing of these strategic resources.
Relations between Tokyo and Beijing have become increasingly strained in recent months. In February, China imposed export restrictions on dual-use goods destined for 20 Japanese organizations, alleging they were linked to Japan’s military. The move followed comments by Japanese Prime Minister Sanae Takaichi, who said Japan would respond if Taiwan, the self-governed island claimed by China, were attacked.
Beyond critical minerals, Sidhu’s visit is also aimed at strengthening energy cooperation between the two countries. During the trade mission, he met with executives from Mitsubishi Corporation, which he said is interested in expanding its investment activities in Canada.
Mitsubishi is already one of the principal investors in the LNG Canada development at Kitimat, British Columbia. The project is the first large-scale liquefied natural gas export facility in North America with direct shipping access to markets across the Pacific.
