Canada’s Nickel Supply to U.S. Faces Uncertainty Amid Trade Dispute

Canada provides nearly half of the nickel used in the United States, but ongoing trade tensions between the two nations have raised concerns about future supply agreements. Mark Selby, CEO of Canada Nickel Company, stated in an interview with BNN Bloomberg that Canada could explore alternative trading partners if necessary.

Nickel is a key component in stainless steel production, electric vehicle (EV) batteries, and defense and aerospace applications. Selby emphasized that Canada has a growing supply of nickel, particularly as the metal plays a crucial role in extending the range of EV batteries, a feature in high demand across North America.

The discussion comes amid a trade dispute in which Ontario Premier Doug Ford has suggested halting nickel and electricity exports to the U.S. in response to newly imposed 25% tariffs on Canadian products. Selby noted that while the U.S. might seek alternative sources, Canada’s nickel remains in demand globally.

“With critical minerals, given their high value—over $20,000 per ton in Canadian dollars—we can easily ship our product anywhere in the world. If the U.S. does not want our nickel, Europe is ready to absorb all of it,” he said.

A report released by the Ontario Mining Association and the provincial government on Tuesday highlighted the significance of mineral exports to the U.S., estimating the industry’s 2023 exports to be worth $42 billion.

Nickel is also essential for defense and aerospace manufacturing. Selby pointed out that jet engines contain two to three tonnes of nickel, and the metal is widely used in fighter aircraft and military hardware. He warned that U.S. manufacturers are unlikely to turn to China or Russia for these critical materials, given geopolitical concerns.