Secure supply chains central to joint commitments to clean energy and electrification of economies.
Co-chaired by U.S. Special Presidential Coordinator Amos Hochstein and Canadian Deputy Prime Minister Chrystia Freeland, the two North American neighbors reaffirmed their commitments to the clean energy transformation and the electrification of their economies and highlighted the importance of secure and resilient supply chains, the White House press release states. The energy transformation and electrifying the economies require critical raw materials like lithium, cobalt, and rare earth elements. Hence, the dependency on other nations, especially China, presents a risk to the supply chains.
Canada has vast amounts of natural resources and holds 31 critical minerals, including lithium, cobalt, copper, and rare earth elements. The northern ally could thus supply the U.S. and other allies with the raw material required for clean energy and electromobility while creating new jobs on both sides of the North American border. The U.S. is also ramping up its mining capacities and production and is increasing the budget for resource exploration. The combined efforts could make the North American continent more self-sufficient, as new policies like the U.S. Rare Earth Magnet Manufacturing Production Tax Credit Act show.
The Energy Transformation Task Force was announced by Prime Minister Justin Trudeau and U.S. President Joe Biden on March 24, 2023, as one of the central outcomes of Biden’s March visit to Canada. The one-year joint task force is focused on securing and strengthening renewable energy and electric vehicle supply chains, including the supply and availability of critical minerals and rare earth elements, energy grid integration and resilience, advanced and conventional nuclear energy, and other areas that advance the energy security of Canada and the U.S.