Exclusive: U.S. looks to Canada for minerals to build electric vehicles – documents

By Ernest Scheyder and Jeff Lewis

(Reuters) – The U.S. government is working to help American miners and battery makers expand into Canada, part of a strategy to boost regional production of minerals used to make electric vehicles and counter Chinese dominance.

On Thursday, the U.S. Department of Commerce is hosting a closed-door virtual meeting with miners and battery manufacturers to discuss ways to boost Canadian production of EV materials, according to documents seen by Reuters.

The move comes as demand for electrified transportation is set to surge over the next decade.

Conservationists have strongly opposed several large U.S. mining projects, leading officials to look north of the border to Canada and its supply of 13 of the 35 minerals deemed critical for national defense by Washington.

Tesla Inc, Albemarle Corp, Talon Metals Corp and Livent Corp are among the more-than 30 attendees at Thursday’s meeting who will discuss ways Washington can assist U.S. companies expand in Canada and overcome logistical challenges, according to the documents.

The U.S. Department of Commerce did not immediately respond to requests for comment.

The event comes after U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau committed last month to building an EV supply chain between the two countries.

Since Biden’s election, three U.S. mining companies have invested in Canada, where mining accounts for 5% of the country’s gross domestic product, versus roughly 0.9% in the United States.

Canada’s Fortune Minerals Ltd, which is developing a cobalt mine in the Northwest Territories, has also held funding talks with the U.S. Export/Import Bank, its chief executive told Reuters.

“The United States is really taking this seriously,” CEO Robin Goad said.

Lithium-ion batteries are dangerous to transport over long distances, so automakers prefer to have them built near assembly plants. That should aid efforts by Ontario and Quebec to develop their own battery cell plants with both provinces close to U.S. automakers in Michigan and Ohio, industry executives said.

“The border between Canada and the U.S. is inconsequential with respect to EVs and EV minerals,” said Arne Frandsen, CEO of mining investment group Pallinghurst, which is the largest shareholder in Nouveau Monde Graphite Inc, which is building a graphite mine and anode plant in Quebec.

Pallinghurst joined Livent last November to buy the Nemaska lithium project in Quebec, in what will be North America’s largest lithium mine. Both projects are slated to open by 2024 just as automakers launch dozens of new EV models.

“We do see Canada as a natural fit for expansion as the whole battery supply chain is going through a huge self-reckoning about sourcing,” said Livent CEO Paul Graves.

Livent has supply deals with BMW and Tesla.

’51ST STATE’

To be sure, the United States is also trying to boost domestic production of EV metals, which the Biden administration has said is critical.

But Washington is increasingly viewing Canada as a kind of “51st State” for mineral supply purposes and plans to deepen financial and logistical partnerships with the country’s mining sector over time, according to a U.S. government source.

Both countries are members of the Energy Resource Governance Initiative, a pact to share mining experience and resources.

Canadian firms are also able to apply for U.S. government grants under the U.S. Defense Production Act and other U.S. funding programs. There are no U.S. tariffs on Canadian EV battery metals or EV parts.

“You’re beginning to see Canada become an important part of the North American EV supply chain,” said Keith Phillips, CEO of Piedmont Lithium Ltd, which in January bought 20% of Sayona Mining Ltd, a developer of a Quebec lithium project.

Canada’s First Cobalt Corp is building the continent’s only cobalt refinery, part of an effort to wean the EV industry off supplies from the Democratic Republic of Congo, where child labor has been used. Cobalt is used to make battery cathodes.

Adding to the appeal of Canada, some of the country’s mines bill themselves as environmentally friendly and promise to use hydroelectric power to reduce their carbon emissions.

The United States knows “that we are the most-secure and most-resilient source of metal imports for them,” Canadian Natural Resources Minister Seamus O’Regan told Reuters.

Last week, privately-held USA Rare Earth invested in Search Minerals Inc’s rare earths project in Newfoundland in eastern Canada.

While USA Rare Earth already controls a rare earths deposit in Texas, executives said they wanted access to more of the minerals used to make electronics and weapons.

“You can’t just rely on projects in the U.S. for supply,” said Pini Althaus, USA Rare Earth’s CEO. “You have to collaborate with Canada.”

(Reporting by Ernest Scheyder in Houston and Jeff Lewis in Toronto; Editing by Amran Abocar and Marguerita Choy)

U.S. plans to send four million doses of AstraZeneca vaccine to Mexico, Canada

By Jeff Mason

WASHINGTON (Reuters) – The United States plans to send roughly 4 million doses of AstraZeneca’s COVID-19 vaccine that it is not using to Mexico and Canada in loan deals with the two countries, an administration official told Reuters on Thursday.

Mexico will receive 2.5 million doses of the vaccine and Canada will receive 1.5 million doses, the official said.

“This virus has no borders,” the official told Reuters on condition of anonymity. “We only put the virus behind us if we’re helping our global partners.”

The Biden administration has come under pressure from allies worldwide to share vaccine, particularly from AstraZeneca, which is authorized for use in other countries but not yet in the United States.

AstraZeneca has millions of doses made in a U.S. facility, and has said that it would have 30 million shots ready at the beginning of April. The company’s shares rose slightly on the news.

The deal to share the vaccine, which is still being finalized, does not affect President Joe Biden’s plans to have vaccine available for all adults in the United States by the end of May, the official said. The deal is likely to be announced publicly in the coming days.

Two officials said the vaccine would be delivered in “short order” once the deal was completed, but they declined to give a more specific timetable.

The “releasable” vaccines are ready to be used once they arrive. Under the deal, the United States will share doses with Mexico and Canada now with the understanding that they will pay the United States back with doses in return. The official said that would take place later this year.

The United States had no plans to share the vaccine with other countries at this time, he said.

“They are our neighbors, they are our partners,” the official said about Mexico and Canada. Mexican President Andres Manuel Lopez Obrador had requested the vaccine previously.

Biden has said if the United States has a surplus of vaccine, it will share it with the rest of the world.

The official noted that the United States has pledged $4 billion to the COVAX vaccine facility that aims to deliver coronavirus vaccines to poor countries.

(Reporting by Jeff Mason; Editing by Heather Timmons and Alistair Bell)

Canada extends travel restrictions at U.S. border: Canadian official

By David Shepardson

WASHINGTON (Reuters) – U.S. land borders with Canada will remain closed to non-essential travel until at least April 21, the Canadian government said Thursday.

The new 30-day extension is the second announced under President Joe Biden and comes as U.S lawmakers in border states have urged lifting the nearly year-old restrictions to address the COVID-19 pandemic.

Canada has shown little interest in lifting the restrictions and last month imposed new COVID-19 testing requirements for some Canadians returning at crossings.

(Reporting by David Shepardson; Editing by Chizu Nomiyama)

Moderna begins study of COVID-19 vaccine in kids

(Reuters) – Moderna Inc has begun dosing patients in a mid-to-late stage study of its COVID-19 vaccine, mRNA-1273, in children aged six months to less than 12 years, the company said on Tuesday.

The study will assess the safety and effectiveness of two doses of mRNA-1273 given 28 days apart and intends to enroll about 6,750 children in the United States and Canada.

The vaccine has already been authorized for emergency use in Americans who are aged 18 and older.

In a separate study which began in December, Moderna is also testing mRNA-1273 in adolescents between 12 and 18 years old.

The latest study is being conducted in collaboration with the National Institute of Allergy and Infectious Diseases (NIAID) and the Biomedical Advanced Research and Development Authority (BARDA).

(Reporting by Manojna Maddipatla in Bengaluru; Editing by Shailesh Kuber)

U.S. extends travel restrictions at land borders with Canada, Mexico through March 21

By David Shepardson and Ted Hesson

WASHINGTON (Reuters) – U.S. land borders with Canada and Mexico will remain closed to non-essential travel until at least March 21, the one-year anniversary of the restrictions to address COVID-19 transmission concerns, the U.S. government said Friday.

The new 30-day extension is the first announced under President Joe Biden and comes as the White House has been holding meetings about potentially tightening requirements for crossing at U.S. land borders in North America, officials said.

Canada has shown little interest in lifting the restrictions and recently imposed new COVID-19 testing requirements for some Canadians returning by land crossings.

On Jan. 26, the U.S. government began requiring nearly all international air travelers to get negative COVID-19 test results within three days of travel, but has no similar requirements for land border crossings.

In an executive order issued last month, Biden directed U.S. officials to “immediately commence diplomatic outreach to the governments of Canada and Mexico regarding public health protocols for land ports of entry.”

It added U.S. agencies should submit a plan to Biden within 14 days “to implement appropriate public health measures at land ports of entry.”

“The plan should implement CDC (U.S. Centers for Disease Control and Prevention) guidelines, consistent with applicable law, and take into account the operational considerations relevant to the different populations who enter the United States by land,” it said.

Biden also directed a similar review of sea travel and to “implement appropriate public health measures at sea ports.”

(Reporting by David Shepardson and Ted Hesson, Editing by Franklin Paul and Bill Berkrot)

Canada to demand negative COVID tests from people returning across U.S. land border

By David Ljunggren

OTTAWA (Reuters) – Canada will step up its fight against COVID-19 by obliging citizens returning home over land from the United States to show they do not have COVID-19, Prime Minister Justin Trudeau said on Tuesday.

Everyone arriving by air already has to prove they tested negative within the previous 72 hours and this rule is being expanded to land crossings starting on Feb. 15, Trudeau said.

Although non-essential travel between the two nations is banned, hundreds of thousands of Canadians have second homes in the United States, and Ottawa is obliged to allow them to return if they wish. People who arrive without test results can be fined C$3,000 ($2,360).

The measure only affects around 5% of returning Canadians because the majority arrive by air.

“We’re using every tool in the toolbox to get us all through this crisis,” Trudeau told reporters. Essential workers such as truck drivers are exempt from the new rules.

Canada has recorded a total of 20,835 deaths and 808,120 cases of COVID-19. Many provinces reimposed restrictions to combat a second wave of the coronavirus pandemic and as a result the number of new daily cases over the last week fell to around 3,500 from 8,000 in early January.

“This is gratifying progress,” chief medical officer Theresa Tam told reporters.

Trudeau also promised the supply of vaccines from Pfizer Inc and Moderna Inc would ramp up next week.

His Liberal government has been attacked by critics over the slow pace of vaccinations, caused in part by a temporary reduction in supplies from Pfizer.

Separately, officials said Canada would allow a sixth dose to be taken from each vial of Pfizer’s vaccine rather than the originally intended five.

They told reporters that six doses could be extracted provided a special syringe was used, mirroring moves taken by the United States and some European nations.

($1=1.2704 Canadian dollars)

(Reporting by David Ljunggren; Editing by Marguerita Choy and Mark Heinrich)

Canada’s Trudeau says scope for closer U.S.-Canada integration on EVs, critical mineral supply

By Steve Scherer

OTTAWA (Reuters) – Canada and the United States can collaborate more closely on manufacturing electric vehicles and on supplying critical minerals needed to make batteries for cars and other clean technologies, Prime Minister Justin Trudeau said on Thursday.

“The integration of our economies, of our supply chains … I think gives a real opportunity for us to really take some leaps forward,” Trudeau said in a telephone interview.

After noting that Canada has many of the rare earths minerals needed for car batteries and solar panels, Trudeau said it was important to have “a secure supply from a friend and an ally”.

China has been one of the main suppliers of critical minerals to the United States, and Biden is planning to mandate a review of critical U.S. supply chains with an eye to securing U.S. industrial supplies, Reuters reported earlier this week.

Canada’s mineral wealth “is part of why so many automakers are now looking at setting up their supply chains for zero emission vehicles in Canada,” Trudeau said.

General Motors Co, Ford Motor Co and Stellantis NV have all announced plans to manufacture electric vehicles in Canada in coming years.

“We’ve already seen something like $6 billion worth of investment by auto companies in Canada over the past couple of years into zero-emissions or low-emissions vehicles,” Trudeau said.

“There’s a lot of really great opportunities to be developing partnerships and production facilities not just for the North American market, but for the world,” he added.

(Reporting by Steve Scherer; Editing by Daniel Wallis)

COVID-19 cases falling in U.S., Canada, but still rising in Mexico, Colombia, Brazil: PAHO

BRASILIA (Reuters) – COVID-19 infections are finally decreasing in the United States and Canada after weeks of unrelenting rise, but in Mexico cases and deaths continue to increase, particularly in states that drew tourism in the holiday season, the Pan American Health Organization said on Wednesday.

In South America, Colombia reported the highest incidence of cases, followed by Brazil, where the city of Manaus is still seeing exponential increases in both cases and deaths, PAHO director Carissa Etienne said. Three new variants have been detected in 20 countries of the Americas, though their frequency is still limited, she said in a briefing.

(Reporting by Anthony Boadle, Editing by Franklin Paul)

Canada considering drug decriminalization to fight overdose crisis

By Anna Mehler Paperny

TORONTO (Reuters) – Canada’s federal government is considering decriminalization of the possession of opioids and other illicit drugs in its efforts to tackle a spiraling overdose crisis, a government official said this week, even as data show the number of charges rising.

Prime Minister Justin Trudeau’s Liberal government is facing pressure to rein in drug overdoses, though it has previously downplayed decriminalization.

Vancouver has asked the federal government to exempt the city from part of the Controlled Drugs and Substances Act, decriminalizing the possession of small amounts of drugs within city boundaries. A spokesman for Health Minister Patty Hajdu said on Wednesday that decriminalization was under consideration and that discussions with Vancouver were under way but would not comment further

That could subject people caught with small amounts of drugs to fines or mandatory treatment.

Canada’s opioid toxicity death rate for the first half of 2020, 14.6 per 100,000, was the highest since national data began to be collected in 2016, according to the federal government.

The number of people charged with drug possession of non-cocaine, non-heroin drugs in Canada more than tripled to 13,725 in the past decade to 2019, according to Statistics Canada. The number of people charged with heroin possession almost quintupled, to 1,043.

“The idea that we’re kind of becoming more tolerant isn’t borne out by the data,” said Neil Boyd, director of the School of Criminology at Simon Fraser University.

The COVID-19 pandemic has disrupted illicit drug supply chains, making for a more toxic supply; it has also lessened supports and driven people to use alone, health advocates say.

Health Canada’s move to discuss decriminalization “comes at a time when the overdose crisis in our city has never been worse,” Vancouver Mayor Kennedy Stewart said in a statement Wednesday.

Many health experts argue decriminalization would encourage drug users to use in safer spaces where they can access medical care.

Trudeau dismissed decriminalization last year, telling the Canadian Broadcasting Corp it was not a “silver bullet.”

Portugal decriminalized illicit drug possession and consumption in 2001. In the 2020 election Oregon voted to decriminalize.

This week Montreal’s city council also voted to support decriminalization. The Canadian Association of Chiefs of Police came out in support of the move last summer.

(Reporting by Anna Mehler Paperny; Editing by Steve Orlofsky)

Exclusive: Canada deporting thousands even as pandemic rages

By Anna Mehler Paperny

TORONTO (Reuters) – Canada deported thousands of people even as COVID-19 raged last year, data seen by Reuters shows, and lawyers say deportations are ramping up, putting people needlessly at risk in the midst of a global health emergency.

Like many other countries, Canada is struggling to stop a second wave from spiraling out of control, and its political leaders are begging residents to stay home to prevent the spread.

Lawyers and human rights advocates are decrying Canada’s November decision to resume deportations. Until now, the extent of the country’s pandemic deportations was not known, but recent interviews with immigration lawyers and scrutiny of government numbers has shed light on the situation.

Canada counted 12,122 people as removed in 2020 – 875 more than the previous year and the highest number since at least 2015, according to Canada Border Services Agency (CBSA) data seen by Reuters. The government says this was necessary and done safely.

The CBSA says the high number last year is because it includes people who decided to leave on their own, termed “administrative removals.” In 2019 there were 1,657 administrative removals, compared with 8,215 last year.

Even subtracting those numbers, that leaves thousands of people deported as the pandemic raged and governments cautioned against travel of any kind for safety reasons.

Even as Canada continues to deport non-citizens during a health crisis, U.S. President Joe Biden paused deportations for 100 days within hours of being sworn in on Wednesday.

Canada officially imposed a moratorium on deportations in March that it lifted at the end of November.

“As much as a human rights concern it’s a common sense concern,” said Bill Frelick, director of Human Rights Watch’s Refugee Rights Program.

Countries’ deportation practices have varied over the course of the pandemic. Several, including the United Kingdom, suspended deportations before resuming them. Others, like Ireland, have kept suspensions in place.

The CBSA said it has been prioritizing deportations for reasons of “serious admissibility,” including criminality.

The vast majority of people deported in 2020 were for reasons of “noncompliance.” Even taking into account administrative removals, more than 1,000 people were deported during the suspension, the data shows.

‘IT’S UNBELIEVABLE’

Public health experts have warned that travel of any kind can spread COVID-19 from one place to another, a risk that grows with the advent of more highly transmissible COVID variants.

Many of the deportation trips involve transfers at multiple airports and flights during which people are placed in enclosed space in close quarters with other people for hours at a time, a situation ripe for transmission.

Since August Canada has been conducting deportations with CBSA escorts, so Canadians are also making thousands of these round-trip flights for deportation purposes.

Organizations including the Canadian Bar Association and the Canadian Association of Refugee Lawyers spoke out against Canada’s decision to resume deportations.

“As everybody is putting in place more restrictions in an effort to flatten the curve … CBSA made a shocking decision to simply go back to business as usual,” said Maureen Silcoff, president of the Canadian Association of Refugee Lawyers.

“Canada has taken the position that nonessential travel is barred yet people are now being removed and there’s no indication that those removals are essential.”

The CBSA said in a statement it lifted the moratorium on deportations because foreign government offices and borders had reopened, airlines restarted their routes and public-health protocols “have contributed to a high degree of safety for persons being removed by air.”

“Canada continues to uphold both its human rights and public safety obligations in relation to the removal of inadmissible foreign nationals,” the statement said. “The removal process includes many checks and balances to ensure that the removal is conducted in a fair and just manner.”

But these deportations are endangering not only the people being deported but the government officers tasked with accompanying them to their destination, lawyers say.

Immigration lawyer Lorne Waldman’s Toronto office went from getting no removal cases to getting three or four in the space of a week, he said. He is now fighting for a failed refugee claimant with two young Canadian children who faces deportation to Egypt Monday.

“They’re ramping it up as if there was no pandemic,” he said. “It’s unbelievable.”

(Reporting by Anna Mehler Paperny in Toronto; Editing by Denny Thomas and Matthew Lewis)