Kucharski on “bizarre” decision on Canadian lithium
In an opinion piece in the Toronto Star, energy policy expert and Royal Roads Adjunct Prof. Jeff Kucharski questions the federal government’s decision to green light the purchase of one of Canada’s major lithium producers by a Chinese minerals conglomerate.
Kucharski argues:
“The decision is bizarre. Lithium, which is on a list of 31 minerals that Ottawa says are critical to Canada’s economy, is imperative to modern manufacturing, including large-scale battery storage needed for clean energy transition and, significantly, batteries for the flourishing electric vehicle (EV) industry.
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“It would have been surprising enough if the Neo Lithium bid had undergone a security review and was cleared, but the deal never even triggered a review under the Investment Canada Act, which assesses significant investments in Canada by non-Canadians, with an eye to promoting economic growth and employment opportunities that benefit Canada.
“Some observers feel a review wasn’t ordered because Neo Lithium’s mine is in Argentina and not in Canada, however this alone would not preclude a review. The legislation cites a range of concerns, including whether an investment by a state-owned enterprise could harm Canada’s national security.
“Given Canada’s own critical minerals list, and what we already know about China’s determination to achieve global high-tech dominance, there were clear reasons for reviewing the Neo Lithium purchase.”