Highlights
- China's recent export embargo on rare earth materials threatens US defense, semiconductor, and clean tech industries.
- David Olive argues Canada's vast REE reserves position it as America's best hope for securing critical mineral supply chains.
- Without a coordinated North American industrial policy, the West risks falling behind in the global mineral competition.
In a recent Toronto Star opinion column, veteran business journalist David Olive warns that China’s tightening grip on rare earth element (REE) exports—particularly its April 4 embargo on seven critical materials—has exposed the fragility of U.S. supply chains. With defense systems, semiconductors, EVs, and clean tech at risk, Olive argues that America’s best chance at REE security may lie just north of the border: Canada.
The call comes amid heightened geopolitical instability, including a broader Middle East conflict and Trump’s escalating global tariff war. “Canada may be the United States’ best hope for mineral security,” Olive writes, citing the urgent need for a binational critical minerals pact.
Rare Earth Exchanges (REEx) notes that China’s export control strategy, coupled with its dominance in refining capacity, has turned market leverage into strategic coercion. U.S. domestic production is growing—but not at a sufficient rate. Canada, with its vast rare earth element (REE) reserves and advanced exploration sector, offers a near-term lifeline—if political tensions can be defused.
While Olive emphasizes mineral cooperation, he downplays ongoing bottlenecks in Canadian permitting and First Nations consultation processes, which continue to stall project timelines. He also omits Canada’s increasing exposure to Chinese state-linked processing firms.
Still, the message is clear: Without a coordinated North American industrial policy for rare earths, the West risks falling further behind in the global mineral arms race. REEx has supported this collaborative approach among traditional allies, especially among the Five Eyes nations.
“Without a coordinated North American industrial policy, the West risks falling behind in the global mineral competition”.
We doubt that this is accurate when it comes to the US and the niche RE sector. The US has so many options and has already taken actions throughout the RE mine to magnet value chain.
We know finance is no problem and the geopolitical events (today it’s Iran bombing) just add tailwinds to US metals moves.
GLTA – REI