Canada orders three Chinese firms to exit lithium deals, citing national security
- 2 companies based in Hong Kong and 1 in Chengdu have been asked to divest from Canadian miners, as Ottawa introduces tougher rules on critical minerals
- Global demand for such metals, essential for cleaner energy and other technologies, is projected to expand significantly in the coming decades
Canada’s government ordered three Chinese firms to divest from a trio of small lithium miners based in the country, days after introducing tougher rules on foreign investments in the nation’s critical minerals sectors.
Sinomine (Hong Kong) Rare Metals Resources Co. Ltd. is required to divest in Vancouver-based Power Metals Corp., while Chengze Lithium International Ltd. (also based in Hong Kong) must exit from Calgary-based Lithium Chile Inc.
Zangge Mining Investment (Chengdu) Co. Ltd., was ordered to divest from Ultra Lithium Inc., based in Vancouver, Canada’s federal government said in a statement on Wednesday.
The government ordered the divestiture after a “rigorous scrutiny” of foreign firms by Canada’s national security and intelligence community, Industry Minister Francois-Philippe Champagne said in a statement.
“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad,” Champagne said.