Study urges Canada to accelerate rare earth strategy

A new study emphasized Canada's potential in the rare earth elements market and urged the government to take swift action. The Canadian Forum for Financial Markets (CFFiM) released a report highlighting Canada's vast reserves of critical minerals, including rare earth elements crucial for modern technologies.

The CCFiM is an independent economic think tank based in Canada with a mandate to promote competitive financial markets and the unleashing of entrepreneurship.

The study found that while Australia and the United States moved rapidly to secure rare earth supplies and reduce dependence on China, Canada lagged behind despite its abundant resources. This delay risked significant economic opportunities in the sector.

Laura Paglia, president and CEO of CFFiM, stressed the need for a focused approach. She stated, "In the global race for rare earths, ambition and visibility matter. Canada needs a stand-alone, Canada-first rare earth strategy, separate from the broader Canadian Critical Minerals Strategy." Paglia added, "Such a strategy would recognize the extraordinary leverage and strategic influence these elements offer and the unique dynamics that set them apart from other critical minerals."

The report outlined several recommendations for the federal government to attract private investment and boost Canada's competitiveness in the global rare earth market. These included developing a stand-alone rare earth strategy, facilitating offtake agreements, implementing price stabilization mechanisms, providing tax incentives, and prioritizing permitting for critical projects.

The CFFiM also recommended leveraging the Critical Minerals Sovereign Fund, investing in infrastructure, and ensuring meaningful consultation with Indigenous communities.

Paglia concluded, "Together, these measures would materially de-risk projects, accelerate supply chain development, and strengthen Canada's competitive position in the global rare earth market."

The full report, titled "From Potential To Production: Attracting Capital To Canada's Rare Earths Sector," is available online on the organization's website.