(Adds Trudeau quote on supply chain) By Doina Chiacu WASHINGTON, April 28 (Reuters) - Canadian Prime MinisterJustin Trudeau on Friday linked the production of lithium inChina to "slave labor" as he discussed his own country's effortsto ramp up production of the metal used in electric vehicle andother batteries. Canada has significant sources of lithium, Trudeau said, butChina has made strategic choices over the decades that have madeit by far the world's largest producer. "If we're honest ... the lithium produced in Canada is goingto be more expensive. Because we don't use slave labor," Trudeausaid in remarks at the Council on Foreign Relations in New York. "Because we put forward environmental responsibility assomething we actually expect to be abided by. Because we counton working with, in partnership, with Indigenous peoples, payingtheir living wages, expecting security and safety standards." A representative for the Chinese Embassy in Ottawa did notrespond to a request for comment. Canada last year announced a tougher policy on criticalmineral investment - particularly from China - as it worked toshore up its domestic supply after the global pandemic exposedsupply chain problems.
"If the pandemic taught us anything, if the pandemic taughtus anything, it's resilience, redundancy and reliability in oursupply chains," Trudeau said. The United States has alleged use of forced labor by Chinain sectors including mining and construction. Last year, a U.S.law took effect banning imports from China's Xinjiang regionover concerns about forced labor. In December, the United Auto Workers union called onautomakers to shift their entire supply chain out of Xinjiangafter a report by Britain's Sheffield Hallam Universitysuggested that nearly every major automaker has significantexposure to products made with forced labor. China denies abuses in Xinjiang, a major cotton producerthat also supplies much of the world's materials for solarpanels. Chinese firms also own, operate or finance most of theDemocratic Republic of Congo's cobalt mines, the U.S. LaborDepartment said in a recent report. "Our research shows thatlithium-ion batteries are produced with an input - cobalt - madeby child labor," it said. Diplomatic tensions between Canada and China have beenrunning high since the detention of Huawei Technologiesexecutive Meng Wanzhou in 2018 and Beijing's subsequent arrestof two Canadians on spying charges.
In November, Canada ordered three Chinese companies todivest from Canadian critical minerals, citing nationalsecurity. China in response accused Ottawa of using nationalsecurity as a pretext and said the divestment order brokeinternational commerce and market rules. (Reporting by Doina Chiacu, additional reporting by IsmailShakil in Ottawa; Editing by Bill Berkrot, Sharon Singleton andJonathan Oatis)
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