The federal government is investing up to $10 million in a critical minerals project in Quebec, following a recent partnership with the United States on a Yukon mine.

Pending final approval, the new road will enable transport of rare earth elements from Quebec's Nunavik region to Labrador for shipping to separation and processing plants. Nunavik is the northernmost region of Quebec and makes up a third of the province.

According to the news release from Natural Resources Canada (NRCan), "Through this project, Canada can become a global supply chain leader in rare earth elements at time where there is a critical shortage of heavy rare earth elements outside China."

The move is widely seen as retaliation against the United States and other Western countries for their efforts to restrict the regime's access to advanced semiconductor technologies.

While it is unclear whether critical minerals would be affected by the potential tariff, Pillai highlighted "the importance of collaboration" with the United States on similar projects, noting that the Yukon produces critical minerals impacted by China's export ban, making the territory an alternative source for its North American ally.

The joint investment announced on Dec. 13 includes C$12.9 million from NRCan and US$15.8 million (roughly C$22.7 million) from the U.S. Department of Defence.