Critical minerals crossfire

TECH

Caught in a critical minerals crossfire

What happened: China added new export controls for critical minerals and batteries last week, adding five more minerals to its export list and new restrictions on refining technology.

It’s the latest escalation between China and the U.S. - one that’s drawing Canada into the crossfire.

The details: China first introduced export controls for 12 critical minerals back in April, and now adds holmium, erbium, thulium, europium and ytterbium to the list. Exports of technology for refining rare-earth metals will also be restricted.

Foreign-owned companies using Chinese materials or equipment will need a license to export - even if production happens outside China.

Limiting exports is likely a bargaining chip in upcoming U.S.-China trade negotiations, but highlights the important role that critical minerals now play in geopolitics.

Why it matters: China controls 90% of global rare earths processing - a vital bottleneck for climate technologies like solar panels and EVs, but also semiconductors and defence tech.

Canada has ambitions to become a leader in critical minerals and battery supply chains, tapping into abundant natural resources, a strong tech sector, and existing mining industry.

But the strategy is facing an increasingly polarized world: China is wielding its processing and manufacturing strengths, while the U.S. is doubling down on securing North American supply chains, taking equity investments in Canadian companies like Trilogy Metals, Lithium Americas, and Electra Battery Materials to secure access to critical minerals.

The bottom line: Power plays by the U.S. and China highlight the urgency - and fragility - of Canada’s critical minerals ambitions. If Canada wants to be a leader, it needs to turn high-level strategies and frameworks into concrete financing tools, supply deals, and permits that drive the industry forward.

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CLIMATE CAPITAL

☀️ Enurgen (Ottawa, ON) closed a $5.7 million seed round for its solar performance software co-led by BDC, Brightspark and Diagram. Enurgen will use the capital to accelerate global expansion of its physics-based energy yield modelling software.

IN THE FIELD

💨 Deep Sky will build its second direct air capture plant in Manitoba, aiming to remove half a million tonnes of CO2 annually.

♻️ Lithion Technologies will recycle Nissan Canada’s end-of-life EV batteries, recovering up to 95% of critical materials.

🔋 Mangrove Lithium plans to commercialize by-products of its lithium processing as a low-carbon substitute for cement clinker.

♻️ Rare earth recycling company Cyclic Materials is the first Canadian company named to MIT Technology Review's 2025 Climate Tech Companies to Watch list.

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NEWS

📡 Signals & Currents

🇨🇦 Climate competition: The Carney government’s new climate change strategy will pivot from focusing on reducing domestic emissions to becoming a leader in the energy transition.

Few details have been shared on the new strategy which is expected later this month.

Canada is among the countries most prepared for climate change according to a new adaptation index. [Bloomberg]

Carney raised the Keystone XL oil pipeline during a visit with President Trump to land deals on steel, aluminum and energy. [CBC]

Vancouver’s per capita emissions fell 16% since 2010, down to 5.8 t per person, while the city’s population grew 27%. [CTV]

U.S. carmakers are pivoting back to ICE and hybrid cars, with GM investing $900M in cleaner V8 engines and writing off $1.6B from lost EV incentives. [G&M]

The world’s land carbon sinks may be disappearing and no longer drawing down up to 1/3rd of the world’s carbon emissions. [New Scientist]

A trio of scientists won the Nobel Prize in Chemistry for developing metal-organic frameworks, a critical puzzle piece for capturing CO2. [CTV]

The EU cut back its sustainability reporting rules to reduce compliance burdens. The U.S. and companies like Siemens are pushing for further concessions. [ESG Today]

Brookfield closed a second $20B energy transition fund and will invest $5B in Bloom Energy, while clean energy stocks are outperforming major indexes and even gold. [The Logic & Bloomberg]

The world’s largest thermal storage system started operations in Hungary, delivering 30GWh of clean process heat annually. [Renewables Now]

COMMUNITY

🚀 Drilling Technology Challenge: Emissions Reduction Alberta (ERA) is investing up to $35 million to accelerate the development of innovative drilling technologies for CCS, geothermal and more. Apply by January 29th, 2026.

➡️ Discover more funding opportunities.

🗓️ Converge 2025: Converge brings together climate tech leaders, funders, policymakers, and industry to discuss the critical need to scale the technologies that can cut emissions, create jobs, and grow resilient industries right here in Canada. November 19th, Vancouver.

➡️ Discover more climate events.

🧑🏻‍💻 Aslan Renewables is hiring a Director, Engineering to unlock Canada’s dormant hydro power potential through small, scalable systems.

➡️ Find more open roles.