Canada Signals Limited Concern Over U.S. Government Stakes in Canadian Miners — Update

By Paul Vieira

Canada has no issues with the U.S. government taking minority stakes in domestic miners whose main assets are in America, Energy Minister Tim Hodgson said.

"That's capitalism in action," Hodgson told reporters Thursday, via a virtual press conference from London.

Foreign investments in Canada tend to undergo a review to ensure they provide a so-called net benefit to the economy. Last year, Canada strengthened the rules regarding foreign investment in Canadian producers of critical minerals, saying they would only be approved in exceptional circumstances.

In recent weeks, the U.S. government agreed to deals that give Washington a 10% stake in Trilogy Metals, which holds interests in copper mining projects in Alaska; and a 5% interest in Lithium Americas, which has a majority stake in the Thacker Pass lithium project in Nevada. Both companies are based in Vancouver, British Columbia.

The U.S. government has in recent years deployed cash into potentially attractive critical-minerals projects, due to an unwillingness among investors and banks to back these initiatives. Washington wants to increase its access to critical minerals outside of China, which is the world's dominant supplier. Critical minerals are essential for the production of goods such as electronics, defense equipment and electric cars.

Hodgson's remarks mark the first time a Canadian official indicated the U.S.-led deals pose no economic or security concern for Ottawa, even amid tumultuous trade talks between the North American neighbors.

"The fact that an ally of ours chooses to make an equity investment into a Canadian company whose sole asset is in the United States, I don't think that bothers us at this time," Hodgson said. He added that Canadian officials have regulatory tools to block the investments if they don't believe the transactions represent a threat to Canada.

Stock in Lithium Americas climbed sharply after the deal with the U.S. Department of Energy was disclosed on Oct. 1, although the share price has come under pressure in recent days. The same pattern holds for shares in Trilogy Metals, which disclosed its transaction on Oct. 6.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

October 16, 2025 13:58 ET (17:58 GMT)