The country, which refines the majority of the world’s lithium supply, published a notice from its commerce ministry seeking public comment on new export restrictions on the key battery material. (Bloomberg)

Talking point: China’s final policy remains unclear, but it’s expected to be closely watched by Canada’s critical mineral industry. Canada is working to develop an alternative to China’s battery supply chain, but in some ways remains reliant on Chinese machinery. The potential restrictions could impact two specific technologies where Canada is building expertise: direct lithium extraction and lithium-iron-phosphate battery cathodes. The export controls could also hit technologies related to the key battery material, as well as gallium, which is used in semiconductors. Meanwhile, Canada is expected to announce its own restrictions on Chinese critical minerals “early” this year, along with tariffs on chips, permanent magnets, and natural graphite from China, set for 2026.