Digging deep: Canada’s $6.4B push for critical minerals dominance

Canada is moving to take the lead in securing vital resources for clean energy, advanced manufacturing, and defense through its G7 presidency. The country is rallying trusted international allies to bolster supply chains and reduce dependencies in an age of digital evolution and global uncertainty.

Minister Tim Hodgson unveiled the first wave of strategic projects under the Critical Minerals Production Alliance during the G7 energy and environment ministers' meeting in Toronto. This initiative aims to fast-track the development of secure critical minerals supply chains.

Minister Hodgson commented: “Canada is moving quickly to secure the critical minerals that power our clean energy future, advanced manufacturing and national defence. Through the Critical Minerals Production Alliance and the G7 Critical Minerals Action Plan, we are mobilizing capital, forging international partnerships and using every tool at our disposal to build resilient, sustainable and secure supply chains. These investments are foundational to Canada’s sovereignty, competitiveness and leadership in the global economy.”

The Alliance harnesses sovereign tools to bring critical mineral projects to fruition, adhering to high standards that boost economic growth and safeguard national security. Hodgson revealed 26 new investments, partnerships, and measures, unlocking $6.4 billion in critical minerals projects. These include activating public and private capital for graphite, rare earth elements, and scandium production.

The government has secured partnerships with nine allied countries and industry players from Europe, Asia, North America, and Australia. Canada has also established offtake agreements with companies like Nouveau Monde Graphite and Rio Tinto. Additionally, the country launched the Roadmap to Promote Standards-Based Markets for Critical Minerals.

This international collaboration cements Canada's reputation as a business-friendly nation and a trusted supplier, attracting more investment in mining and processing projects. Hodgson also announced up to $20.2 million for innovative critical minerals research and development projects with international partners.

Evan Solomon, the federal minister of artificial intelligence and digital innovation, stated: “Critical minerals power the technologies that define our digital and clean energy future — from AI and advanced computing to electric vehicles and defence systems. By partnering with our G7 allies and Canadian innovators, we’re securing the resources and supply chains that keep Canada competitive and sovereign in a changing world. This is how we turn natural advantage into strategic strength — and build the trusted, technology-driven economy of the future."

To protect national security and sovereignty, Canada plans to use the Defence Production Act to stockpile critical minerals. This move aims to enhance domestic capabilities in strategic defense sectors and safeguard domestic production. It will ensure supply to Canadian and allied defense industries, bolster Arctic sovereignty, and support stockpiling efforts with trusted partners. The initiative will also support NATO's defense goals by expanding transatlantic capacity.

David McGuinty, the federal minister of national defence, said: “These investments strengthen Canada’s contributions to NATO and reinforce our collective resilience. By taking action now, we are safeguarding Canada and our allies against supply chain vulnerabilities and reducing dependence on unreliable sources. As global demand for critical minerals accelerates, building secure, sustainable and resilient supply chains isn’t just sound economic policy — it’s vital to our shared security and prosperity."

The Critical Minerals Production Alliance demonstrates the G7's ability to collaborate on critical minerals supply chains amid growing global competition. Canada commits to continuing its efforts, working closely with G7 and like-minded countries, to diversify and secure critical minerals supply chains. These actions will ensure a safe and prosperous future for all Canadians, with key milestones set for the IEA 2026 Ministerial Meeting and PDAC 2026.