Holding back a critical mineral processed in B.C. and critical to high-tech industries could be used as an “reactive weapon” in a trade war with the United States.
That’s according to John Steen, director of the University of British Columbia’s Bradshaw Research Initiative in Minerals and Mining, who pointed to the province’s production of germanium. The critical mineral is increasingly used in electronics and solar technology, fibre optics, and infrared optics used regularly by militaries to see at night.
“He’s pushing the tariffs and the trade war, but on the other hand, America can't do without these critical minerals,” said Steen.
One of the fastest-growing uses for the shiny mineral is in thermal imaging cameras and night vision devices mounted on autonomous vehicle driving systems, say experts.
China banned germanium exports to the U.S. in December 2024, part of a raft of escalating restrictions of critical metals the country deems could be used for duel civilian and military purposes.
B.C.’s supply of the metal largely rests in the hands of Teck Resources Inc. (TSX:TECK.B), a Vancouver-based company that sources the mineral from its Red Dog zinc mine in Alaska.
The zinc ore is then shipped to the company’s Trail, B.C., smelter where germanium is removed, processed and once again sent over the Canada-U.S. border where it’s sold to American customers at a spot market price of over $4,000 per kilogram — making it two and half times more valuable than silver.
Teck did not respond to BIV's requests for comment.
Trump's annexing threat not a joke, wants critical minerals, says Trudeau
Earlier this week, U.S. President Donald Trump said he would delay by one month threats to impose a 25 per cent tariff on Canadian goods, and a 10 per cent tariff on the country’s energy exports. Trump has also repeatedly threatened to make Canada the U.S.’s 51st state.
On Friday, Prime Minister Justin Trudeau said Trump was not joking and that the U.S. president was interested in “absorbing our country” to control its supply of critical minerals.
Trudeau made the remarks to more than 100 business, labour and industry leaders who were invited to an economic summit in Toronto.
His comments were made behind closed doors after reporters were ushered out of the room, but the Toronto Star was able to hear what Trudeau was saying because the audio was inadvertently broadcast.
The Star, which first reported the story, says Trudeau was answering a question from one of those attending the summit.
The prime minister said the Trump administration knows what critical minerals Canada has and "that may be even why they keep talking about absorbing us and making us the 51st state."
Three cabinet ministers who were at the summit did not deny that Trudeau made the comments about the Trump administration.
"They’re very aware of our resources, of what we have and they very much want to be able to benefit from those," Trudeau said, according to the Toronto Star report.
"But Mr. Trump has it in mind that one of the easiest ways of doing that is absorbing our country. And it is a real thing."
Critical minerals take centre-stage in trade dispute
In Trump's initial threats to slap tariffs on Canadian, Mexican and Chinese goods, he cited an uncontrolled cross-border flow of migrants and fentanyl. The latest comments from Trudeau shift at least some of that public attention to Canada's natural resources.
During former U.S. president Joe Biden’s administration, Canada advanced plans with its neighbour to develop a critical mineral supply chain that would send crucial metals to manufactures across the continent. The range of metals are used to fabricate a number of technologies, from electric car batteries to fibre optics and military hardware.
For the U.S., the success of that supply chain was made more important in December when China announced banned export of antimony, gallium and germanium to the United States — metals the Chinese government said could be used in “dual-use” technologies for both civilian and military use.
On Monday, the U.S. decision to impose a further 10 per cent tariff on Chinese goods prompted the Asian superpower to expand restrictions on 20 more products containing critical metals used in everything from solar panels to artillery shells, Reuters reported.
When it comes to germanium, China produces between 70 and 75 per cent of the world’s annual output, according to the U.S. Geological Survey. But China is far from the only source of the critical mineral.
In mid-January, federal Energy Minister Jonathan Wilkinson pitched a joint U.S.-Canada investment in Teck's germanium operations in a plan that would boost production and supply of a mineral.
Before Trump said he would delay tariffs on Canadian goods Monday, B.C. Premier David Eby said the province’s critical mineral producers were already looking at redirecting their minerals to other markets outside the U.S.
Within an hour of news, Wilkinson’s press secretary told BIV negotiations with the Americans over critical minerals were back on. She said the minister would head to Washington, D.C., this week to once again pitch a Canada-U.S. alliance on energy and critical minerals.
“An alliance could strength our collective position as the reliable energy supplier for the world, and make our economies more secure and less reliant on adversaries like China,” the spokesperson told BIV in an email.
Pressure builds to ramp up Canadian energy, mining projects
Given Trudeau’s reported comments behind closed doors, it’s not clear how the Canadian government is negotiating with a U.S. leader who it believes wants to actively control Canada’s mineral and oil resources.
In the short term, Steen said any barriers to the free flow of germanium would hurt U.S. buyers, who have few easily accessible sources of the mineral. Long-term, he said Canada’s big plans to expand the mining of critical minerals — and fuel green energy plans — would suffer if U.S. investment is choked off in a trade war.
Amid that uncertainty, B.C.’s premier announced this week he would fast-track permitting for 18 resource projects, spanning gold, copper and silver mines, gas pipelines and the Cedar LNG natural gas export facility in Kitimat.
Critics, however, have warned that approving resource projects does not guarantee economic success. A 2024 audit from researchers at Simon Fraser University and the University of British Columbia found delays to approve dozens of B.C. mines were largely caused by market forces — not government permitting.
John Young, a senior strategist on LNG at the Climate Action Network Canada, said governments across Canada should not rush decisions that “compromise our sovereignty for the benefit of American billionaires.”
“Donald Trump has unified Canadians in defence of our country and our right to determine our own future,” said Young in a statement.
British Columbians lead opposition against U.S. control over Canadian natural resource projects, finds poll
The comments came after the release of a poll Friday that found most Canadians oppose U.S. companies taking greater control over the country’s natural resource projects — a level of defiance found to be strongest in British Columbia.
The survey, carried out by Leger Marketing on behalf of the B.C. citizen's group Dogwood, found 83 per cent of British Columbians were opposed to expanded American ownership in the sector — including 76 per cent who were “strongly opposed.” That’s higher than any other jurisdiction in the country.
Outside of B.C., opposition remained strong, with 70 per cent of Canadians strongly opposed to expanded American interest in the sector; another 10 per cent reported being somewhat opposed. Only 10 per cent said they supported some form of greater U.S. corporate control over Canadian natural resource projects.
Threats of a trade war have prompted increased pressure from oil and gas lobbyists to fast-track more pipelines and liquefied natural gas (LNG) projects, including the 900-kilometre-long Prince Rupert Gas Transmission (PRGT) pipeline.
The PTGT pipeline, which has yet to receive final approval, would send hydraulically fracked gas to the proposed Ksi Lisims LNG terminal near Prince Rupert. TC Energy Corporation sold the proposed pipeline to Houston-based Western LNG in March 2024. The Nisga’a Nation also holds a partial equity stake in the pipeline project.
B.C. Environment Minister Tamara Davidson is expected to decide on the fate of the PRGT pipeline this spring after weighing evidence from its proponents, First Nations impacted by the project and environmental groups that oppose its construction.
One of the project’s major backers is Blackstone Inc., which in 2023, was the first Wall Street private equity firm to hold $1 trillion in assets, and whose holdings have since climbed about $100 billion higher. On Jan. 15, Western LNG announced Blackstone would provide an “anchor investment” of $150 million in the pipeline project.
Blackstone’s CEO Steve Schwartzman reportedly contributed $39 million to the 2024 Trump election campaign, and he has been informally advising the president since the start of Trump’s first term in 2016, according to BNN Bloomberg.
“Handing control of Canada’s strategic energy resources to Trump’s corporate allies would be a grave mistake,” said Young.
According to the latest Leger poll, a majority of Canadians agree. It found 53 per cent of Canadians opposed the PRGT pipeline, opposition that climbed to its highest in B.C. at 62 per cent.
In every province surveyed — including the Prairie provinces, Ontario, Quebec and Atlantic Canada — more respondents opposed the project than backed it.
The online survey polled 1,553 Canadians between Jan. 31 and Feb. 3. It carried a margin of error of plus or minus 2.49 per cent.
–With files from the Canadian Press
