HomeEconomyTo counteract China, Germany and Canada's export restrictions, they strengthen their critical...

To counteract China, Germany and Canada’s export restrictions, they strengthen their critical minerals cooperation

In a context of the restrictions of war and commercial export of China, Germany and Canada they agree to strengthen their links in the supply of critical minerals.

Germany and Canada want to ensure their supply chains and agreed on Tuesday to strengthen their cooperation in the field of critical minerals, in the context of growing concern against the export restrictions imposed by China and Berlin’s efforts to reduce their dependence on a single supply source. Critical minerals such as lithium, rare earths, copper, tungsten, gallium, Germanio and nickel are essential for defense systems, clean energy technologies and advanced manufacturing in Canada and Germany.

The decision made in April by China to suspend rare earth exports and related magnets disturbed world supply chains, penalizing car manufacturers, aeronautics, semiconductor manufacturers and defense companies. The German Minister of Economy, Katharina Reiche, and Canadian Minister of Energy and Natural Resources, Tim Hodgson, signed a statement of intention to strengthen their cooperation in critical minerals, emphasizing treatment, refining and recycling.

Promote synergies

The two countries will coordinate their efforts in the field of critical minerals such as lithium, rare earths, copper, tungsten, gallium, Germanio and nickel, by advancing in common projects through public and private investments. They also plan to encourage trade associations and research cooperation between companies and financial institutions.

The agreement is not legally binding and does not imply any financial commitment, the financing that is subject to available credits, as well as to the national laws and regulations of each country. The German minister, Katherina Reiche, said in a statement that “the supply of critical raw materials is a key element in the competitiveness of the economy,” and added that specific efforts would be in the development of German-Canadian cooperation in terms of extraction of raw materials.

Author: HC with Reuters
Source: BFM TV

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