If successful in iron ore, the mandate of China's new centralised state buyer could be extended to lithium, copper and bauxite.

A panel of experts last month urged the country to bring its measures in line with WTO obligations.

Natural Resources Minister Jonathan Wilkinson’s comments come days after his ministry published a critical minerals strategy that pledged to review Canada’s approval process for developing mines.

Announced at the COP15 talks on biodiversity in Montreal, the Sustainable Critical Minerals Alliance would support these standards for elements like lithium, cobalt and nickel.

The loan will help finance construction of new lithium-ion manufacturing facilities in Ohio, Tennessee and Michigan.

LG Chem last month announced plans to invest $3 billion to build a facility in Clarksville, Tennessee.