The trade war issue between the United States and China has caused the Asian country to restrict the export of rare earth materials from their country and this is expected to cause a sharp increase in prices, especially for the technology industry.
Recently, it was reported that Canada wants to start producing rare earth materials and a number of other natural materials needed especially by the semiconductor sector and other technologies such as electric transportation and so on.
The Canadian government has released a report titled Canadian Critical Mineral Strategy Annual Report 2024 which outlines the country's plan to expand their mining industry to produce critical minerals, including rare earth materials.
Canada's land is reported to have 34 critical minerals that can be mined for use, but six of them seem to be receiving focus from the government to boost the country's economy, including lithium, graphite, nickel, cobalt, copper and rare earth elements. Lithium, cobalt and copper are also seen as key materials for electric transportation battery components.
However, Canada still places great importance on the environment, and the process of obtaining permission to mine these elements is a very time-consuming one.
Opening a mine in Canada takes about 10-15 years, with various reports and permits required to ensure that the mining process is not only safe for the workers who do it, but that the company also needs to ensure that the environment in the mine area is not affected by the activity.
The main concern is that over this long period of time, the technology for developing semiconductor chips and vehicle batteries can change rapidly, and there is a possibility that industrial needs will arise where elements such as lithium and nickel may no longer be needed.
However, for now, it may be worth it for Canada to consider mining these materials, especially since even in 10 years, it is expected that the need for these elements will still be very much needed for various types of industries.