The rush to dominate the critical mineral supply has hit a new vein with both the U.S. and Chinese governments making a flurry of announcements that could impact Canada’s future as a major supplier.
Key private and government movers in the arena have been busy in recent weeks as China plans to flood the market with critical minerals such as graphite to undercut attempts by competitors to bolster domestic production.
Earlier this week, Canadian Deputy Prime Minister Chrystia Freeland denounced Beijing’s “intentional, state-directed economic policy” to overproduce critical minerals as harmful.
“We cannot let Canadian industry be wiped out by Chinese oversupply and overcapacity,” said Freeland.
Historically, China has dominated the global critical mineral supply but policymakers in Washington hope to exploit North America’s rich abundance of critical minerals and foil China’s attempts to lock out Western competitors.
To achieve this, the Biden administration introduced a 25% tariff on natural graphite beginning in 2026 as well as a 27% tariff on synthetic graphite from China beginning June 14.
“My customers in the U.S. now have way more benefit to buy from us compared to my customers in Canada,” Noveau Monde Graphite CEO Eric Desaulniers told The Logic.
But it’s not all good news for Canada.
“The side effect will be that we’ll sell all our production in the U.S. That’s not ideal for the Canadian side,” explained Desaulniers.
Canadian industry leaders have already begun making moves to take advantage of the policy landscape.
In Ontario, Kingston and Greater Sudbury announced a new partnership called the Kingston-Greater Sudbury Critical Minerals Alliance to delineate cooperation on critical mineral mining projects. Sudbury is already in the process of building a $900 million ore processing facility for cobalt.
The U.S. government has also partnered with counterparts in Ottawa to fund a graphite project in Quebec with a $32.5 million co-investment announced earlier this month for Fortune Minerals Ltd.
