Canada is forging ahead with a strategy to secure its position as a leading supplier of critical minerals, announcing 30 new federal partnerships with 12 allied countries under the Critical Minerals Production Alliance at the PDAC convention in Toronto this week. The initiative, backed by $12.1 billion in spending on mining and processing projects, aims to reduce reliance on nations like China, which currently dominate the critical minerals market.
“What we have is our moment to shine,” declared Tim Hodgson, Canada’s Minister of Energy and Natural Resources, speaking at the convention. Hodgson framed critical minerals as strategic assets, differentiating Canada within the evolving global order. He emphasized the importance of keeping the value chain within Canada’s borders, stating the country is “moving at speeds not seen since World War Two” to expand its processing infrastructure.
The push comes as global demand for critical minerals – essential for technologies like electric vehicles, renewable energy systems, and defense applications – intensifies. Prime Minister Mark Carney launched the Critical Minerals Production Alliance last year to address vulnerabilities in supply chains and ensure allies have access to these vital resources. The Alliance is currently channeling approximately $18.5 billion into Canada’s mineral sector, according to government figures.
Hodgson underscored the national security implications of a secure critical minerals supply, asserting that Canada “can never be in a situation” where it is subject to the influence of dominant suppliers. He characterized secure supply chains as essential to both national security and sovereignty.
Canada is actively reinvesting in existing smelter infrastructure, rather than building new facilities, to facilitate value-added processing. Hodgson highlighted the application of Canadian technologies to extract critical minerals from copper, zinc, and nickel smelters. The Canada Growth Fund is playing a key role in supporting private companies to develop and commercialize these technologies.
Specific projects receiving government support include the Crawford Nickel Project in Timmins, Ontario, and a copper project led by Foran Mining in Saskatchewan. Hodgson also pointed to ongoing perform with refiners of heavy rare earth metals, aiming to further diversify Canada’s critical minerals portfolio.
The government is deploying financial tools, including the $1.5 billion First and Last Mile Fund (FLMF) and the $2 billion Critical Minerals Sovereign Fund, to build the necessary infrastructure for processing. Hodgson expressed confidence in the capacity of Natural Resources Canada to meet the challenges of this ambitious undertaking.
Recent geopolitical events, including strikes in Iran, have further highlighted the importance of diversifying critical mineral supply chains, with several nations reportedly reaching out to Canada’s energy minister for assurances. Canada is also advocating for a buyers’ alliance to tackle the concentration of critical mineral supply, according to recent reports.
