Canada’s vow to curb foreign investment in its critical minerals sector will face its first major test with Saudi Arabia’s deal to buy into some of the country’s largest nickel mines.

The bill has to be approved by parliament’s upper house and India’s president before it becomes a law.

Vale Base Metals is expected to invest $25-30 billion in new projects across Brazil, Canada and Indonesia over the next decade.

The company achieved operational net zero for its first shipment of battery grade lithium.

Analysts have pared price forecasts for the metal as supply expands while demand in China remains muted.

The lithium industry in Africa's top producer has rapidly expanded, buoyed by about $1 billion of investments during the past two years by Chinese companies.

The company plans to start producing 50,000 metric tons of graphite next year in Mozambique.

Minister Madeleine King said the government would prioritise support for critical minerals projects that underpin key technologies such as battery chemicals.