China’s decision to restrict exports of gallium, germanium, and other rare metals to the U.S. has reignited concerns over North America’s reliance on Beijing for critical minerals. The Mining Association of Canada (MAC) is urging closer trade cooperation between Canada and the United States, warning that escalating trade tensions threaten the security and reliability of essential supply chains. The U.S.-Canada critical mineral trade is now more critical than ever, especially as China’s rare metals export ban continues to disrupt global markets.
A Vulnerable Supply Chain
China’s export ban underscores the global dependence on its rare metal production. Gallium and germanium, critical to industries such as fiber optics, space exploration, and military technology, have few substitute materials, making supply chain disruptions particularly damaging. Most satellites, for instance, rely on germanium-based solar cells, and night-vision goggles depend on its unique optical properties.
Between 2019 and 2022, Canada supplied nearly half of the U.S.’s germanium imports, according to the U.S. Geological Survey. This role has grown increasingly vital as Teck Resources, one of the world’s largest germanium producers, looks to expand output to fill gaps left by China’s rare metals export ban.
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Rising Trade Tensions
The call for collaboration comes amid rising trade friction. President-elect Donald Trump has threatened 25% tariffs on Canadian and Mexican goods unless stricter measures are taken to curb migration and fentanyl trafficking. For Canada, which exported more than CA$80 billion ($56.9 billion USD) in minerals to the U.S. in 2022, such tariffs could severely disrupt trade.
“Tariffs risk exacerbating vulnerabilities in critical mineral supply chains that both nations are working to address,” Gratton noted, adding that North American industries rely on uninterrupted access to these resources for competitiveness.
Securing North America’s Critical Minerals
Both the U.S. and Canada have identified securing critical mineral supply chains as a national priority. Rare metals like germanium and gallium are central to emerging technologies, including renewable energy systems, defense applications, and semiconductors. However, the U.S. remains heavily reliant on imports for these materials, with China dominating global production and processing.
The recent geopolitical rift highlights the need for diversification. Canada’s resource-rich economy and established mining infrastructure make it a natural partner for the U.S. in reducing reliance on Chinese exports. Increased investment in Canadian mining and processing could offer a sustainable solution to bolstering North American supply chains and enhancing the U.S.-Canada critical mineral trade.
Industry Response
Teck Resources has already signaled its intent to boost germanium production to meet growing demand. However, scaling up will require significant investment in infrastructure and regulatory support. Simultaneously, companies like Barrick Gold and BHP Group are looking to align their operations with North America’s strategic goals for critical mineral independence.
The urgency of addressing supply chain vulnerabilities is further underscored by the evolving geopolitical landscape. As nations ramp up investment in clean energy and advanced technologies, access to critical minerals will shape both economic resilience and national security. Strengthening the U.S.-Canada critical mineral trade could help mitigate future supply shocks caused by external pressures like China’s rare metals export ban.
Building a Resilient Future
China’s export ban is a wake-up call for North America to accelerate its critical mineral strategy. Deepening U.S.-Canada cooperation could provide a pathway to greater resource independence, benefiting industries on both sides of the border. “This is a moment for Canada and the U.S. to lead together,” Gratton said.
While the path forward will require substantial investment and policy coordination, the opportunity to build a resilient, sustainable supply chain has never been more urgent—or more attainable.
