Canadian firms are also able to apply for U.S. government grants under the U.S. Defense Production Act and other U.S. funding programs. There are no U.S. tariffs on Canadian EV battery metals or EV parts.
"You're beginning to see Canada become an important part of the North American EV supply chain," said Keith Phillips, CEO of Piedmont Lithium Ltd
Last week, privately-held USA Rare Earth invested in Search Minerals Inc's rare earths project in Newfoundland in eastern Canada.
While USA Rare Earth already controls a rare earths deposit in Texas, executives said they wanted access to more of the minerals used to make electronics and weapons.
"You can't just rely on projects in the U.S. for supply," said Pini Althaus, USA Rare Earth's CEO. "You have to collaborate with Canada."
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