Canada has announced a 6.4 billion Canadian dollar ($4.6 billion) package of critical mineral projects to challenge China’s overwhelming dominance in the critical mineral supply chain. The announcement came on Friday at the close of the G7 Energy and Environment Ministers’ meeting in Toronto.
“This first round of G7 Alliance projects sends the world a very clear signal: we are serious about reducing market concentration and dependencies, safeguarding national security and sovereignty, mobilizing capital, and driving investments in sustainable critical minerals projects,” Energy and Natural Resources Minister Tim Hodgson said.
He confirmed that Ottawa had invoked the Defence Production Act to officially designate critical minerals as essential to Canada’s national interests. The move allows the country to launch a stockpiling regime, similar to one in the U.S.
Ottawa is moving to secure its position as a trusted supplier to Western economies. Despite U.S. President Donald Trump’s progress, the market remains anxious about Beijing’s 90% control of global rare-earth processing.
The package includes stockpiling, purchase agreements, equity stakes, and price floors. It is the first tangible step in creating a North American and allied alternative to China’s mineral value chain.
Major Corporate Projects and Partnerships
Among the 25 projects announced, several involve major publicly listed companies. Nouveau Monde Graphite Inc. (NYSE:NMG) will receive federal and international support for its Matawinie graphite project near Montréal. Offtake agreements with Japan’s Panasonic fortify the project. Meanwhile, Rio Tinto Plc (NYSE:RIO) secured a 25 million Canadian dollar injection from the Canada Growth Fund for its scandium plant in Sorel-Tracy, Quebec. In comparison, Norway’s Vianode will build a 2 billion Canadian dollar synthetic graphite facility in Ontario to supply materials for electric-vehicle batteries.
Future Investment Outlook and Policy Goals
Still, the Canadian Climate Institute estimates that the country will require at least $30 billion in investments by 2040 to meet decarbonization and industrial policy goals. That need far exceeds current project pipelines. Yet, the announced multibillion-dollar package is a catalyst. It is signaling to investors and allies that Canada is moving from resource potential to full value chain.
“We are no longer just talking, today is a proof of concept,” Hodgson said. He noted that Canada intends to be “masters in our own home” in the critical minerals value chain.
This approach clarifies the country’s objective of resource sovereignty. It means no isolation but building resilient supply chains that reinforce allied security, industrial independence, and long-term economic strength.
https://finance.yahoo.com/news/canada-no-longer-just-talking-223117714.html