Global Policy Shifts Reinforce the Need for Supply Chain Optionality

Written By: Adam Johnson, Senior Vice President, External Affairs at Nano One

Building on years of engagement with government about the importance of the midstream sector, Nano One continues to emphasize the role of lithium iron phosphate (LFP) cathode active materials as critical enablers in electric vehicles, energy storage, defence, and emerging artificial intelligence applications. This ongoing dialogue has reinforced the importance of developing optionality of supply and domestic manufacturing capacity to reduce one-country dominance, strengthen supply chain resilience, and accelerate clean-technology growth.

Along with many other industry leaders, we have been encouraged to see these messages resonate with policymakers; however, nothing accelerates policy momentum like a shift in global trade dynamics. On October 9, 2025, China announced new export control measures on key battery materials—including cathode materials, precursors, and cathode manufacturing equipment—introducing a fresh round of global supply-chain adjustments.

That said, the West has not sat idly by. Governments in North America and allied markets have already launched major initiatives to strengthen supply-chain independence and support industrial growth through domestic production of critical materials.

We were encouraged by the G7’s adoption of a Critical Minerals Action Plan this summer. Collectively, G7 members are working to support the development of secure and resilient supply chains, and we anticipate further policies and programs to reinforce this. 

We are also observing the United States take decisive steps domestically by investing in projects and restricting Prohibited Foreign Entities (PFEs) from gaining influence in supply chains. In Canada, renewed efforts are underway to foster sovereign capabilities for domestic production of critical minerals, and to leverage defence procurement in cooperation with Europe and through other strategic measures.

G7 members are beginning to designate projects that both strengthen supply chains and unlock further investment or address chokepoints.  We were particularly pleased to see Canada and Germany issue a Joint Declaration of Intent on Critical Minerals Cooperation, which supports resilient supply chains and encourages investment. We specifically appreciate this section:

“We acknowledge the significance of critical minerals midstream technologies, including smelting, processing, refining, and recycling capacity to ensure secure and sustainable supply, and we share mutual interest in fostering innovation, rules-based trade, investment, and collaboration in the critical minerals space.”These developments reinforce the strong policy tailwinds supporting domestic production of battery materials and the importance of Nano One’s position in the midstream.