Business
Amid Geopolitical Struggles, Canada Has Critical Resources And The US Government Seems Ready To Invest
(NewsDirect) The last few years may have been a sharp wake-up call to U.S. legislators. Growi...
About this update from Arianne Phosphate Inc.
[{"type":"text","content":"Amid Geopolitical Struggles, Canada Has Critical Resources And The US Government Seems Ready To Invest\n \n \n (NewsDirect)\n \n \n The last few years\nmay have been a sharp wake-up call to U.S. legislators. Growing\nprotectionist sentiments around the globe and geopolitical concerns\nlike the Russia-Ukraine War have devastated supply chains for key\nmarkets.\n \n \n The\nRussia-Ukraine war has caused major disruptions in the agricultural\nand automotive industries. Russia and Ukraine account for a\nsubstantial portion of the global fertilizer trade.\n \n \n Russia\nproduces\n \n \n 9% of the world’s nitrogen fertilizer, 10% of\nphosphate fertilizer and 20% of potash fertilizer. Russia is also a\nkey supplier of metals and minerals needed to produce cars.\n \n \n Other major producers\nlike China have demonstrated a willingness, and perhaps eagerness, to\nlimit exports when it suits them either politically or economically.\n \n \n China\nannounced in July\n \n \n that it would be extending its export\nrestrictions on phosphate fertilizer through the end of 2022.\n \n \n The US and European\ncountries are becoming warier of the mineral and material\noverdependence on rivals like China and Russia.\n \n \n In\nSeptember, the U.S. Department of Agriculture\n \n \n announced it\nwill invest $500 million to increase domestic fertilizer production to\nhelp with supply chain disruptions from Russia. This commitment is\ndouble the amount of its previous commitment.\n \n \n The US also announced that Canadian\ncountries qualify under the 1950 Defense Production Act (DPA). This\nmeans that an investment in Canada by the Department of Defense will\nlegally be the same as an investment domestically, opening a lot of\ndoors in Canada.\n \n \n What Is Driving This Shift And What Does It\nMean?\n \n \n President\nJoe Biden’s administration has national security concerns over\nheavily relying on rivals for key minerals and metals. The principal\nindustry Biden is worried about, although there are many impacted by\nstrict Chinese exports, is the automotive industry.\n \n \n In the coming decades,\nthe\n \n \n electric\nvehicle (EV) market may be set to explode\n \n \n and currently, the\nEV battery supply chain is reliant on too many foreign countries\npresenting a potential national security threat. The US is eager to\nchange this ...