Parliamentarians call on Canada to approve the sale of neolithium to Chinese companies

Washington — A group of Republicans want to know more about why Canada didn’t red flag the pending acquisition of lithium producers with offices in Toronto.

Three members of Congress are also asking the Biden administration to explain to Congress how Canada and the United States are working together to strengthen important mineral supply chains.

Congressmen Michael Waltz, Elise Stephanik, and Lance Gooden are concerned about the fact that Ottawa has allowed Neo Lithium Corporation, which is listed on the Toronto Stock Exchange, to be sold to a Chinese state-owned enterprise. It states that it is.

The federal government states that Neo Lithium is incorporated in Canada, but is actually based in Argentina and there are no concerns in the initial review.

However, letters from the trio to key members of the Biden administration, including Secretary of State Antony Blinken, have raised concerns about whether the United States should cooperate with Canada on important minerals.

The letter arrives when the United States announces plans to renovate its domestic and international supply chains and the two countries celebrate the anniversary of last year’s groundbreaking “roadmap” for bilateral cooperation.

“The Chinese Communist Party’s acquisition of an important Canadian mineral mining company? In a letter released Thursday, the three house members are very concerned.”

It also raises a “series of questions” about whether Canada and the United States fully understand the national security threat posed by China, the letter continues.

These questions appear to include whether Canada is acting in good faith under the terms of a bilateral “Action Plan” on securing an important mineral supply chain. This was first agreed in 2020 and reaffirmed by Biden last year.

“The Government of Canada’s collusion approval also raises questions about the extent of cooperation with the United States in accordance with the Action Plan, such as whether the United States government was aware of or notified of pending transactions.”

Last month, Industry Minister Francois Philippe Champagne said the sale was subject to a thorough national security review in accordance with the rules set out in the Canadian Investment Law.

He said that such reviews would be “enhanced” if they contained either a state-owned enterprise such as Zijin Mining Group Ltd. in China, or an important mineral that is an important component of modern electronics and electric vehicles. Said.

Champagne also said that Neolithium’s main project in Argentina will include lithium carbonate, not the lithium hydroxide that EV makers are coveted.

To James McCurtain

Canadian press


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