Pending Neo Lithium sale to Chinese company draws U.S. ire
By James McCarten, Canadian Press
News China ippt lithium Neo LithiumWith the United States and Canada each taking stock of their supply-chain woes and marking one year since their heralded bilateral “road map,” a group of House Republicans is raising concerns about whether the two countries should be working together on critical minerals.
Texas Rep. Lance Gooden, Florida Rep. Michael Waltz and New York Rep. Elise Stefanik have written to key members of President Joe Biden’s cabinet to complain about a Chinese state-owned enterprise’s pending takeover of a lithium producer with offices in Toronto, Ont.
The acquisition “is highly concerning and raises a litany of questions regarding United States and Canadian understanding of the threat imposed by the Chinese Communist Party,” reads the letter, dated Feb. 23 and released Thursday.
The letter, signed by all three lawmakers, is addressed to Secretary of State Antony Blinken, Defense Secretary Lloyd Austin, Interior Secretary Deb Haaland, Energy Secretary Jennifer Granholm and Commerce Secretary Gina Raimondo.
In 2020, prior to the onset of the COVID-19 pandemic in North America, the two countries formalized a “joint action plan” to ensure secure supply chains for critical minerals like lithium, cobalt, nickel and uranium — vital components in high-tech communication, aerospace and defence applications, as well as electric vehicle batteries.
But Canada’s decision to allow Neo Lithium Corp. to be taken over by China — a perennial national security concern that’s by far the global leader in critical minerals and rare earth elements —casts a shadow over the wisdom of that plan, the letter suggests.
“The Canadian government’s complicit approval also raises questions regarding the extent of co-operation with the United States in accordance with the action plan, including whether the United States government was aware or notified of the pending transaction.”
(Canadian Press)
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