Canada, Japan consider critical minerals joint stockpiling in hunt for China alternatives

Canada and Japan are working on a range of mining projects, including potential joint stockpiling, Canada’s trade minister told ​Reuters, as Japan moves to diversify supplies of critical minerals ‌and reduce dependence on China.

Ottawa and Tokyo are in talks on options for cooperation including joint mining projects, off-take agreements and stockpiling arrangements for minerals such ​as graphite and gallium, International Trade Minister Maninder Sidhu said in ​an interview.

“We’re offering Japan that avenue to do more with ⁠Canada in terms of critical minerals,” he said.

He cited as an ​example of partnership an off-take agreement between Nouveau Monde Graphite and Panasonic ​for graphite, a key material for batteries.

Sidhu is in Tokyo leading Canada’s trade mission, with a delegation of roughly 300 members from nearly 180 companies and organizations – ​the North American country’s largest of its kind in the Asia-Pacific.

Japan, along ​with Western governments and manufacturers, has been seeking to secure supplies of rare earth minerals ‌to ⁠reduce dependency on China, the world’s dominant rare earths producer and supplier.

In February, China prohibited exports of so-called dual-use items to 20 Japanese entities, which it said supply Japan’s military. That came after Japanese Prime ​Minister Sanae Takaichi angered ​Beijing by ⁠saying Tokyo would act in the event of an attack on democratically governed Taiwan, which China claims.

Sidhu’s trip ​to Japan is also focused on broader energy cooperation. ​Among the ⁠companies he has met so far is Mitsubishi Corp, which he said is “very interested in doing more in Canada in terms of investments”.

Mitsubishi is ⁠a key ​investor in the LNG Canada project in ​Kitimat, British Columbia, the first major liquefied natural gas facility in North America with direct ​access to the Pacific Coast.

(By Makiko Yamazaki; Editing by Christopher Cushing)