If We Want Lithium, Let China Finance It

Foreign investment in a country’s natural resources often comes with hefty emotional baggage; centuries of resource wars and colonialism will tend to do that. The history of oil, for example, is replete with such conflict. Yet that industry has financed the development of gargantuan fields via partnerships between companies hailing from all corners of the globe. Why? Because it’s a good way to raise capital.

In managing the very real risks posed by China’s dual identity as a manufacturing powerhouse and authoritarian regime, there is still room for nuance rather than mere knee-jerks.

Lithium is strategic because it is vital for the millions of batteries required to meet the decarbonization goals set by Canada and many other countries, including the US. Yet, just as net-zero emissions has emerged as a policy priority, so too has net-zero Chinese involvement. Which is a problem, since China controls 70% or more of 11 key segments of the global solar and battery supply chain,…