Canadian Prime Minister Justin Trudeau on Friday linked the production of lithium in China to “slave labor” as he discussed his own country’s efforts to ramp up production of the metal used in electric vehicle and other batteries.
Canada has significant sources of lithium, but China has made strategic choices over the decades that have made it by far the world’s largest producer, Trudeau said.
“If we’re honest ... the lithium produced in Canada is going to be more expensive, because we don’t use slave labor,” Trudeau said in remarks at the Council on Foreign Relations think tank in New York.
Photo: Bloomberg
“Because we put forward environmental responsibility as something we actually expect to be abided by. Because we count on working with, in partnership, with Indigenous peoples, paying their living wages, expecting security and safety standards,” he said.
A representative for the Chinese embassy in Ottawa did not respond to a request for comment.
Canada last year announced a tougher policy on critical mineral investment — particularly from China — as it worked to shore up its domestic supply after the COVID-19 pandemic exposed supply chain problems.
“If the pandemic taught us anything, if the pandemic taught us anything, it’s resilience, redundancy and reliability in our supply chains,” Trudeau said.
The US has alleged use of forced labor by China in sectors including mining and construction. Last year, a US law took effect banning imports from China’s Xinjiang region over concerns about forced labor.
In December last year, the United Auto Workers union called on automakers to shift their entire supply chain out of Xinjiang after a report by Britain’s Sheffield Hallam University suggested that nearly every major automaker has significant exposure to products made with forced labor.
China denies abuses in Xinjiang, a major cotton producer that also supplies much of the world’s materials for solar panels.
Chinese firms also own, operate or finance most of the Democratic Republic of the Congo’s cobalt mines, the US Department of Labor said in a recent report.
“Our research shows that lithium-ion batteries are produced with an input — cobalt — made by child labor,” it said.
Diplomatic tensions between Canada and China have been running high since the detention of Huawei Technologies Co (華為) executive Meng Wanzhou (孟晚舟) in 2018 and Beijing’s subsequent arrest of two Canadians on spying charges.
In November, Canada ordered three Chinese companies to divest from Canadian critical minerals, citing national security. China in response accused Ottawa of using national security as a pretext and said the divestment order broke international commerce and market rules.
Other commodities:
‧ Gold for June delivery rose US$0.10 to US$1,999.10 per ounce, up 0.43 percent from a week earlier.
‧ Silver for July delivery rose US$0.02 to US$25.23 per ounce, up -0.68 percent weekly.
‧ July copper rose US$0.01 to US$3.89 per pound, down 2.26 percent.
Additional reporting by AP
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process