US-Canada Critical Mineral, EV Battery, And Semiconductor Cross-Border Supply Chain Issues

The Inflation Reduction Act ("IRA") has garnered criticism from the European Union ("EU") due in large part to its domestic sourcing requirements.¹ Some in Canada have echoed this criticism, including Michael Harvey, vice president, policy & international of the Canadian Chamber of Commerce, who has warned that the IRA may damage Canadian global competitiveness.

However, significant parts of the IRA, as well as the Defense Production Act ("DPA"), consider Canadian businesses to be "domestic" sources. Consequently, Canadian companies are now presented with the opportunity to capture business and benefits resulting from these pieces of legislation. The past few years have seen close collaboration between the Biden and Trudeau administrations to boost cross-border trade, particularly for critical minerals needed to manufacture electric vehicle ("EV") batteries and semiconductors. We explain the details of this cooperation and the way that Canadian companies are