Canada risks losing critical minerals infrastructure race, PwC warns

Canada risks losing its competitive edge in critical minerals, energy and other strategic sectors unless it accelerates infrastructure investment and project approvals, according to a new PwC Canada report.

Canada is projected to invest $4.7 trillion in infrastructure by 2050, but the country is spending a smaller share of its economy on infrastructure than many high-performing peers and risks falling behind in sectors poised for rapid global growth. Canada currently invests 6.6% of GDP in infrastructure versus 7.4% among leading countries, a gap PwC estimates would require an additional $34 billion annually by 2050 to close.

"Canada can exceed this forecast. It can also fall short of it," PwC said in the report. "The difference comes down to the moves we make next."

The report identifies resources as Canada's largest infrastructure opportunity, with cumulative spending projected to reach $1.6 trillion by 2050. Annual investment in resource infrastructure is forecast to rise to $63 billion from $53 billion today as demand for critical minerals and energy grows and countries seek reliable alternatives to concentrated global suppliers.

PwC said the biggest opportunities increasingly depend on integrated infrastructure rather than standalone projects. Ontario's Ring of Fire, one of Canada's largest undeveloped mineral districts, will require roads, power transmission, digital connectivity and community infrastructure to be developed together before large-scale mining can proceed.

Approval process is main barrier

The report argues that Canada's lengthy regulatory approval processes remain one of the largest barriers to capturing this growth. Projects often face years of reviews and overlapping regulatory requirements, increasing costs and uncertainty compared with competing jurisdictions.

While resources will dominate spending, the report warns Canada is underinvesting in several sectors compared with global peers. Nuclear power investment is projected to grow just 11% in Canada through 2050, compared with 45% globally. The United States is also expected to outpace Canada in areas including airports, data centres and other strategic infrastructure categories.

PwC echoes what the industry has been saying for years: faster approvals, stronger partnerships with First Nations, greater private-sector participation and new financing models will be needed if Canada hopes to capitalize on shifting global supply chains and growing demand for critical minerals. The firm argues that infrastructure projects serving multiple purposes and users, such as transportation, energy and communications networks, will play a central role in unlocking future economic growth.

The findings come as governments and businesses race to secure supplies of critical minerals needed for electrification, defence and advanced manufacturing while strengthening domestic supply chains amid rising geopolitical competition.