Canadian Critical Minerals Strategy Annual Report 2024

Table of contents

• Ministers’ messages
• Importance of critical minerals
• Critical minerals and Canada’s net-zero commitments
• International environment
• Canada’s potential
• Canadian Critical Minerals Strategy
• Progress to date
• Research and development
• Infrastructure
• Mining
• Processing
• Manufacturing
• Recycling and the circular economy
• Enabling responsible critical minerals development
• What we plan to do next year
• Advancing international collaboration on critical minerals
• Working with provinces and territories to strengthen domestic value chains
• Environmental protection
• Reconciliation

Ministers’ messages

Message from the Minister of Energy and Natural Resources

Critical minerals are the elements key to many technologies that will increasingly be needed to power the clean economy. In fact, global demand for critical minerals is expected to double by 2040, according to the International Energy Agency (IEA). Fortunately, Canada is uniquely positioned to benefit from this growing market — we are abundant in many critical minerals and have the workers, businesses and communities with the know-how to scale up the mining, processing and manufacturing of products and the recycling of these minerals responsibly. Our government is supporting the growth of the critical minerals sector to seize the once-in-a generation economic opportunity this presents for Canada, including the hundreds of thousands of jobs that could be created.

Critical minerals — including copper, lithium, nickel, cobalt, graphite and rare earth elements — are the foundation on which modern technologies are being built — from semiconductors to wind turbines, cellphones, solar panels, medical devices, defence applications and electric vehicles. Many of these minerals have few or no substitutes, are limited in supply and concentrated geographically, leading to their recognition as “critical” by many countries. As countries around the world seek to secure access to these minerals, Canada has an environmentally responsible and strategic approach to accelerate our production and supply of critical minerals, by creating a resilient critical mineral supply chain that makes Canada a global supplier of choice while keeping our environment clean.

One year since the release of Canada’s Critical Minerals Strategy, we have already made significant progress. Through the Strategy’s flagship Critical Minerals Infrastructure Fund, we are providing up to $1.5 billion in funding over the next seven years for clean energy and the transportation infrastructure necessary to expand critical mineral projects. The Strategy’s second program, the Critical Minerals Research, Development and Demonstration (CMRDD) Program is providing $192.1 million to support the development of innovative processing technologies for the critical minerals industry. We launched new critical mineral tax credits to help kick start new projects, in addition to extending the Mineral Exploration Tax Credit for an additional year to support junior and grassroots companies. And we revised and released the Critical Minerals List, a key resource in determining where to focus our mining exploration and extraction efforts. The Strategy has already played a role in delivering job-creating projects, including Marathon Palladium in Ontario, the Jansen Potash Mine in Saskatchewan, James Bay Lithium in Quebec, and has stimulated the development activity of many others.

Through these measures, we are supporting economic growth while creating a more inclusive and skilled workforce and strengthening our leading environmental, social and governance standards — a key competitive advantage for Canada. The development of critical minerals must be consistent with Canada’s priorities of environmental protection and conservation, safe and responsible labour practices, and the recognition of the rights of Indigenous Peoples. Meaningful participation and leadership of Indigenous Peoples are essential to ensuring that Indigenous communities benefit holistically from critical mineral projects. Indigenous engagement and partnership remain at the core of our work, and we know we have more to do.

Canada is a known leader in the critical mineral space. Our international partners are looking to us to be their supplier of choice amidst increasingly unpredictable global markets. Recent geopolitical events, such as Russia’s brutal invasion of Ukraine, have underscored the vulnerabilities of relying on undiversified energy supply chains and on authoritative regimes. Democratic countries are looking for reliable, diversified and like-minded partners to meet their energy needs. However, at present, critical mineral production and processing are highly concentrated in only a few regions — China supplies 60% of rare earth elements (REEs) and processes 90% of REEs and 60–70% of lithium and cobalt. As Canada ramps up its critical mineral production, we can reduce our own dependency and that of our trusted allies on high-risk imports and strengthen global supply security.

The mining and mineral sector is already highly valuable to our economy. In 2022, the minerals and metals sector directly employed 420,000 people and contributed $109 billion to Canada’s total gross domestic product (GDP). Since 2020, automotive and battery manufacturers have announced investments of over $40 billion in electric vehicle production and the battery supply chain. With the accelerating energy transition, these sectors are poised for rapid growth.

Our economic prosperity and the health of our planet depend on a cleaner future. We know where the world is headed, and Canada will be there to meet it — in the rapidly expanding critical minerals space and across key natural resource sectors.

The Honourable Jonathan Wilkinson, P.C., M.P.
Minister of Energy and Natural Resources

Message from the Minister of Innovation, Science and Industry

Advanced battery technologies are being integrated into complex and rapidly growing industries — such as transportation and information technology—into industrial automation and even into stationary energy storage. Having all the minerals and metals required to produce batteries, as well as a strong R&D ecosystem and a world-class automotive industry, Canada is establishing itself as a globally competitive extractor and manufacturer of battery-grade materials. With known deposits and untapped potential for the minerals required for batteries, we are also well positioned to be the global hub for advanced battery technologies. Furthermore, Canada is known for its innovative start-ups, abundant renewable energy and responsible regulatory environment. It is therefore no surprise that we have been recognized by BloombergNEF as having the strongest battery supply chain potential in the world, taking the top spot in its Global Lithium-Ion Battery Supply Chain Ranking.

Fully realizing our potential will require ongoing investment in mineral production and processing and in technology development. With this in mind, we have made investments under the Canadian Critical Minerals Strategy, launched in 2022, that will build mineral supply chain resilience and bolster Canada’s economic competitiveness.

The Government will continue to support the development of the next generation of battery supply chains, right here in Canada. Together, we must be bold, we must be ambitious and we must seize the moment.

The Honourable François-Philippe Champagne, P.C., M.P.
Minister of Innovation, Science and Industry

Importance of critical minerals

The world needs more critical minerals. Global demand for critical minerals, the building blocks of green technologies used for electric vehicles (EVs), computers and greener electricity, is projected to double by 2030 based on the current policy landscape according to the International Energy Agency’s (IEA) Global Critical Minerals Outlook 2024. At the same time, supplies of many important minerals are geographically concentrated, potentially putting supply chains at risk.

This presents a generational opportunity for Canada, and our country is ready to seize it. With supplies of many in-demand critical minerals, the technological know-how and strong environmental credentials, Canada stands ready to help supply the world with critical minerals and the essential products derived from them.

The Government of Canada released the Canadian Critical Minerals Strategy in December 2022 to set out a course for Canada to become a global supplier of choice for critical minerals and the clean and digital technologies they enable. This first annual report will outline key actions we have taken, the significant progress we have made and where we intend to go from here.

Critical minerals and Canada’s net-zero commitments

Canadians are already feeling the effects of climate change, including catastrophic weather events such as wildfires and flooding. The earlier Canada takes action to address climate change, the more effectively the country can reduce its risk and protect the health and safety of Canadians.

Because of the threat of climate change, the Government of Canada committed to net-zero emissions by 2050 and to achieve its Paris Agreement target to reduce greenhouse gas (GHG) emissions by 40 to 45% from 2005 levels by 2030. To get there requires integrating lower-emitting technologies in important systems that we use every day, like transportation and energy.

Critical minerals are key to many of these technologies and can help us get to our climate targets. While mining and processing minerals create emissions, this is balanced by increased commercialization and deployment of clean technologies that will contribute to significant GHG emission reductions overall. As just one example, the EV life cycle assessment calculator of the IEA shows that while EVs have some additional embedded emissions due to the metals in the battery, this is far outweighed by the elimination of tailpipe emissions and that the extent of the benefit will also depend on the intensity of the grid used to charge the EV.

What are critical minerals?

To be deemed a “critical mineral” in Canada, a mineral must meet both of the following criteria:

• its supply chain is threatened
• it has a reasonable chance of being produced by Canada

It must also meet 1 of the following criteria:

• it is essential to Canada’s economic or national security
• it is required for the national transition to a sustainable low-carbon and digital economy
• it positions Canada as a sustainable and strategic partner within global supply chains

Canada’s critical minerals list, updated in June 2024, includes 34 critical minerals. 6 are considered a priority for their distinct potential to spur Canadian economic growth: lithium, graphite, nickel, cobalt, copper and rare earth elements.

Critical minerals are vital to green and digital technology

Critical minerals are essential to our green energy future. Many green and advanced technologies cannot be made without critical minerals, either as essential components or elements in the manufacturing process.

International environment

Critical minerals security has become a leading international priority as the world seeks to improve supply chain resiliency and decarbonize the global economy in line with a net-zero future. Across the world, countries have launched critical minerals–focussed strategies and have prioritized public investments into mineral supply chains.

Value chains for critical minerals are often concentrated in a handful of countries. Key operations are located in only a few regions globally, leaving them exposed to economic disruptions and predatory actions by non-market economies seeking to further control critical minerals markets and achieve foreign policy goals.

Market value of key energy transition minerals

The expected market value (in USD billions) of selected critical minerals for the energy transition, under the IEA's Announced Pledges Scenario.

Countries are focussed on major risks to global critical minerals supply chains, which includes a continued lack of supply chain diversification across key commodities, competition over limited supplies of critical minerals, and social and environmental performance issues that can impede public support for mining and disrupt needed production. This has ramped up international collaboration across a range of different bilateral and multilateral fora, including with the developing world which is recognized for its essential role in supplying key minerals and diversifying value chains.

Major trading partners and allies are also taking action to secure and diversify critical minerals supply chains. The United States, Canada’s largest trading partner, has introduced major investments through recent legislation like the Inflation Reduction Act of 2022 and, in 2024, merged efforts with Canada through joint investments into 2 Canadian critical minerals projects: Fortune Minerals Limited, located in the Northwest Territories, and Lomiko Metals Inc., in Quebec. Meanwhile, the European Union has introduced major policies through the European Critical Raw Materials Act in 2024, which envisions strategic investments in global projects, while similarly purposed policy initiatives are underway or being implemented in Japan, Australia, the United Kingdom and other countries. France has also invested in the InfraVia fund to finance critical minerals projects.

Shared priorities on security and supply chain diversification are being promoted on the world stage, including through fora like the IEA and the G7. Canada’s G7 presidency in 2025 offers a key opportunity to advance collaboration on critical minerals with international partners.

Shared priorities extend to how minerals are sourced. Critical minerals supply chains need to meet government, industry and public expectations in terms of sustainable and responsible sourcing. In an era of increased supply chain transparency and traceability, it is increasingly important for markets to take this into account.

Percentage of refined material production for critical minerals, 2023

Refined material production for some key critical minerals is very geographically concentrated.

These charts depict the value of the top three producing countries in 2023. Numbers for some minerals may not add up to 100% due to rounding.

Canada’s potential

Canada is well positioned to meet the growing demand for critical minerals at home and abroad. It is one of the few industrialized countries to have extensive reserves of critical minerals, and its environmental, social and governance (ESG) standards and comparatively clean energy grid make it an attractive prospect for development.

Canada has also been recognized for its high ESG standards in a world where many critical minerals are mined in environmentally damaging ways or with concerns about human rights and labour conditions. For example, the GHG emissions created to produce nickel in Canada are estimated to be nearly 10 times lower than those in Indonesia, according to Skarn Associates, a research firm specializing in GHG emission data for the mining sector.

Explore critical mineral development across Canada

As countries look to responsibly source critical minerals, Canada’s greener energy, high labour standards and responsible governance make Canadian minerals and downstream products stand out. According to an analysis by BloombergNEF, Canada’s stable governance, effective environmental assessment regime, and commitment to transparency make it attractive for critical minerals investors.

Top countries in the BNEF Global Lithium-Ion Battery Supply Chain Ranking

Country	Rank
Canada	1
China	2
United States	3
Germany	4
Finland	5
South Korea	5

Sources: Global Lithium-Ion Battery Supply Chain Ranking, BloombergNEF, 2024; Energy Transition Metals Production Scores: Australia Top, BloombergNEF, 2023

Critical minerals are found from coast to coast to coast, including in rural, remote and Indigenous communities. Canada is not just looking to supply raw materials, but to build out the entire value chain from start to finish — from exploration to manufacturing, to recycling. Doing so will ensure the reliability of the supply chain, as well as benefit Canadians through job creation.

Canadian Critical Minerals Strategy

The Strategy was released in December 2022 following extensive engagement with industry, academia, Indigenous groups and other governments, including provinces and territories. Supported by nearly $4 billion in funding from Budgets 2021 to 2024, the Strategy’s vision is to increase the supply of responsibly sourced critical minerals and support the development of the green and digital economy at home and abroad.

The Strategy addresses five core objectives:

1. Supporting economic growth, competitiveness and job creation
2. Promoting climate action and environmental protection
3. Advancing reconciliation with Indigenous Peoples
4. Fostering diverse and inclusive workforces and communities
5. Enhancing global security and partnerships with allies

The Strategy takes a full-value chain approach to critical minerals development, ensuring that different stages of the industrial process are nationally integrated. For example, instead of exporting mineral resources to be processed in foreign countries and reimported as final goods or inputs for domestic manufacturing, Canada will build industrial ecosystems where all stages of the value chain are available and integrated domestically, and with trading partners.

Progress to date

Canada has made significant progress in implementing the Strategy this year, and as programs mature in the coming years, we will move closer to accomplishing the Strategy’s objectives. This part of this annual report will describe important milestones we have reached so far along each stage of the value chain.

Research and development

Innovation is key to staying relevant in the rapidly changing field of critical minerals and green technology. Canada’s approach is to support projects at various levels of development to help move them from the laboratory to pilot project, to commercialization.

Since the launch of the Strategy, the Government of Canada has implemented many key initiatives supporting exploration, research, development and innovation across the critical minerals sector, including:

• The Natural Sciences and Engineering Research Council launched the Alliance Missions grants for critical minerals projects aimed at encouraging interdisciplinary, collaborative work throughout critical minerals value chains. In 2023, 66 grants with a total value of $59.9 million were awarded for projects across the country.
• The National Research Council of Canada (NRC) launched the Critical Battery Materials Initiative, a collaborative initiative that aims to establish automated artificial intelligence–enabled platforms that can discover new critical battery materials and processes in a third of the time it takes today, helping to address the gaps in the midstream supply chain of Canada’s battery materials.
• The CMRDD Program supports the advancement of critical minerals technologies and processes through a federal research and development (R&D) stream and a contribution funding stream. To date, the Program has implemented over 75 R&D projects and invested over $62 million to support 14 demonstration projects, including projects covering battery minerals, mining value from waste and rare earth elements processing.

Government researchers are also actively involved in advancing critical minerals–related science through projects related to greener mining, battery recycling, new ways to recover and process critical minerals, and studies into new mineral sources.

Infrastructure

Canada’s critical minerals are found from coast to coast to coast, often in remote and potentially environmentally sensitive areas with less access to energy, transportation and other infrastructures. These regions need investments to get critical minerals online and connect resources to markets.

That is why infrastructure is a key part of the Canadian Critical Minerals Strategy. Investing in clean energy and transportation infrastructures can help unlock critical minerals production and develop value chains.

Since the Strategy’s launch, 2 major federal initiatives related to critical minerals infrastructure have begun:

• The $1.5-billion CMIF has completed its first call for proposals and is in the process of reviewing the applications received. To be eligible for funding, projects must increase critical minerals resource production in Canada. Funding decisions consider the expected mining and infrastructure-related economic development benefits of projects.
• NRCan has announced a joint investment of up to $195 million under the CMIF with the Government of British Columbia to upgrade key highway infrastructure in the northwest region of British Columbia that is needed to support critical minerals development in that region, improve community access and safety, and create good mining jobs across the province.
• In 2023, the Canada Infrastructure Bank (CIB) announced its plan to invest in critical minerals enabling infrastructure (e.g., transportation, clean power and water / wastewater infrastructures) in collaboration with the federal government, Indigenous partners and private investors. Since June 2023, the CIB has been discussing investment opportunities in critical minerals enabling infrastructure with a range of partners, including NRCan.

Mining

Opening a mine is a complex undertaking, taking on average nearly 16 years, according to a 2023 study by S&P Global.^{Footnote 1}

Mines go through many stages of development, including exploration, feasibility studies, construction, production, closure and reclamation. Each stage is dependent on a combination of geology, drilling results, investment, market forces and a host of other factors. Building a mine also involves various actors, including industry; federal, provincial and territorial governments; regulatory bodies; local communities; Indigenous Peoples and environmental consultants.

Mining is a cornerstone of the Strategy, which aims to provide support throughout the development cycle of a mine:

• In its first year of operation, the Critical Minerals Geoscience and Data Initiative funded 54 research projects to explore critical minerals sources, study new sources and apply advanced analytics to generate mineral potential models that will reduce investment risks and guide decisions with the inclusion of ESG standards.
• Canada and the United States announced a joint investment in Fortune Minerals Ltd. to advance engineering and processing for the development of the company’s NICO mine and refinery to ensure a reliable North American supply of bismuth, in addition to cobalt, copper and gold. Canada’s contribution was $7.49 million through the Global Partnerships Initiative and the American investment was US$6.4 million through the Defense Production Act Investments Office.
• The Innovation, Science and Economic Development Canada’s (ISED) SIF has allocated $27 million toward E3 Lithium to support development and commercialization of technology needed to extract lithium from brine resource and supply lithium hydroxide to the EV battery manufacturing sector.
• The Government of Canada launched the first clean economy investment tax credits, including the Clean Technology and Clean Technology Manufacturing Investment Tax Credits, which the critical minerals sector can use in conjunction with other tax incentives, depending on their operations.

Tax credits for critical minerals

• Critical Mineral Exploration Tax Credit (CMETC)

The 30% non-refundable CMETC supports certain critical minerals exploration expenses incurred in Canada and renounced to flow-through share (FTS) investors.

• Clean Technology Manufacturing Investment Tax Credit

This refundable tax credit supports 30% of the cost of investments in machinery and equipment used to manufacture or process key clean technologies; and extract, process or recycle certain critical minerals essential to clean technology supply chains.

• Mineral Exploration Tax Credit (METC)

The 15% non-refundable METC supports certain mineral exploration expenses incurred in Canada and renounced FTS investors. (Note that the METC cannot be claimed in addition to the CMETC.)

Processing

Mineral processing is the link between raw materials and finished products, and an integral part of the critical minerals value chain. The Canadian Critical Minerals Strategy seeks to build Canada’s processing capacity and capture the value created by this additional step to provide secure and reliable sources of material inputs for a strong manufacturing sector.

Some highlights since the launch of the Strategy include:

• The CMRDD Program has helped to advance processing technologies that unlock new critical minerals sources, promote circularity and reduce environmental impacts through federal research and development projects and contribution-funded pilot and demonstration projects. These projects include improvements to nickel processing; concentration and conversion of Canadian lithium brine into lithium battery precursor materials; production of high-purity cobalt sulphate; and technology advancements that recover graphite, rare earth elements and other critical minerals from both primary and secondary sources.
• ISED has encouraged growth in the advanced manufacturing and EV battery sectors via a $222-million SIF commitment to Rio Tinto Iron and Titanium that will support responsible production of scandium, titanium metal and lithium.
• An allocation of $37 million was provided through the SIF to support Vale Canada in the development of a nickel sulphate conversion facility. The nickel sulphate will supply Canada's EV battery manufacturing sector with important battery-grade chemicals.

Rio Tinto Iron and Titanium (RTIT)

RTIT has partnered with the Government of Canada to decarbonize its operations in Sorel-Tracy, Quebec, and increase production of critical minerals, including lithium, scandium and titanium, enhancing supply chain security for these metals in North America.

Scandium and titanium are important elements that help make metal alloys lightweight and strong. These alloys are used in applications ranging from aerospace to bicycles, from laptops to crutches and from pipes to baseball bats.

By initiating new smelting technology that could generate fewer GHG emissions than the current reduction process for production of high-grade titanium dioxide for steel and metal powders, RTIT and the federal government will drastically reduce the carbon footprint.

Through these initiatives, the partnership will support sustainable development of critical minerals resources, including industrial waste streams, and build strong global supply chains while strengthening trade relationships with Canada’s closest allies.

Manufacturing

Mining and manufacturing are inextricably linked and the global push toward electrification of transportation is changing the automotive manufacturing landscape. More than 20 countries have set targets for the phaseout of internal combustion engine vehicles before 2050. This will require greater volumes of advanced batteries, permanent magnets and specialty alloys; and necessitate modernization of the mining sector in order to produce the minerals and intermediate products that EVs are made from.

With abundant natural resources, clean energy, unparalleled market access and skilled human resources, Canada has attracted anchor investments from global manufacturers of battery precursor materials, cathodes, battery cells and EVs. Since 2020, automotive and battery manufacturers have announced investments of over $46 billion to transition to EV production and establish a battery supply chain. The Government of Canada is supporting these investments through a mix of federal contributions, including those provided through the SIF and investment tax credits.

To further capitalize on the push toward electrification, Budget 2022 established a $1.5 billion contribution target overseen by the ISED SIF. This commitment is helping Canada realize the full potential of its natural resources. The next phase of dedicated investment for critical minerals processing and recycling applications will connect our rich upstream resources sector with the manufacturing sector to ensure its access to the materials needed for the transition to a clean and digital economy.

Recycling and the circular economy

Letting critical minerals go to waste — literally — in mine tailings or spent batteries means that Canadians do not retain the benefits of those materials. That is why the Canadian Critical Minerals Strategy has a circular economy approach, which seeks to encourage reuse and recycling to minimize waste at every stage of the value chain.

Recycling critical minerals not only helps manage waste such as used computers and EV batteries, it can also contribute to meeting Canada’s growing demand for those minerals – potentially lessening the number of new mines we need and increasing the security of our supply. According to the IEA, recycling could reduce global primary supply requirements for copper, nickel, lithium and cobalt by 10 to 30% by 2040.

Since the Strategy’s launch, a number of initiatives have focused on recycling and the circular economy. Highlights include:

• Researchers at NRCan are leading the Mining Value from Waste Program, which seeks to develop an inventory of mine tailings to document their critical minerals potential and advance processes to recover critical minerals from mine tailings.
• The NRC is advancing battery and critical minerals circularity by developing methods to optimize the processing of battery materials from both primary and secondary sources. This work also assesses the GHG intensity of the new processing methods.
• The SIF and the CMRDD Program are contributing to projects that advance the circularity of critical minerals. Examples include piloting processes and technologies that limit or eliminate waste streams; various recycling or reprocessing projects of priority minerals such as nickel, cobalt, rare earth elements and graphite; a project to recycle rare earth elements from used magnets; and another project to determine how to reprocess synthetic graphite from decontaminated industrial waste.

Enabling responsible critical minerals development

Accelerating the development of Canada’s critical minerals sector, while ensuring environmental sustainability and respecting the rights of Indigenous Peoples, is essential if Canada is to seize upon this generational opportunity and position itself as a stable supplier of critical minerals, both at home and abroad.

Industry needs certainty and efficiency in the regulatory process. Canada’s natural environment must be protected. Indigenous Peoples need assurances that all critical minerals initiatives will include opportunities for their meaningful participation. Employers need a trained and capable workforce. Finally, global partnership is needed to support the development of secure value chains at home and abroad.

Regulatory environment

Canada has a world-class regulatory system and is a world leader in getting projects done right — with strong environmental protections, robust labour standards and true partnerships with Indigenous Peoples. The pace of the energy transition demands efficiency from our regulatory system, without compromising what Canada does right.

The Government of Canada has taken a number of steps to improve Canada’s regulatory system and help project proponents navigate federal government programs.

• Amendments to the Impact Assessment Act came into effect on June 20, 2024. These amendments focus decision making on potential non-negligible adverse effects within federal jurisdiction and allow for greater flexibility for coordination with provincial and territorial impact assessments and substitution of assessments.
• The Clean Growth Action Plan was published on June 20, 2024. The plan includes new initiatives to improve federal permitting timelines through a new federal permitting office; develop a federal permitting dashboard; enhance coordination between the federal, provincial and territorial governments for impact assessment; develop a Crown consultation coordination function to enable coordination of Indigenous consultation in federal permitting processes; enable Indigenous communities to participate more fully in economic opportunities from natural resource projects and facilitate a whole-of-government culture shift to support clean growth projects.
• The Northern Regulatory Initiative dedicated $3.75 million to activities that support clearer, more trusted and more functional regulatory regimes, reflecting and respecting the contexts in each of the 3 territories. Examples include the early planning of a regional study in the Slave Geological Province, and participation of otherwise unfunded Indigenous governments and organizations in impact assessment and land use planning processes.
• NRCan’s “Critical Minerals Concierge Service” has supported over 150 partners and stakeholders in identifying suitable federal programs for potential funding opportunities and in navigating the federal regulatory framework. This includes a range of interested parties from technology firms to junior mining companies and Indigenous organizations.

Protecting the environment

Canada has set a target to achieve net-zero emissions by 2050. Getting there will require moving from fossil fuels to a more electrified future. And even though green technologies generally present a net reduction in GHG emissions relative to higher-emission technologies, mineral production itself can still be made greener. This can include measures such as considering the potential environmental impacts when choosing a mine site to incorporating low-emissions equipment in the mine itself.

The Canadian Critical Minerals Strategy aims to support robust environmental protection, which will also present a competitive advantage for Canada. Countries around the world are beginning to demand greener value chains for critical minerals and associated products. With abundant clean energy and good stewardship, Canada can be very attractive.

• Research programs at NRCan are examining ways to lessen the environmental impacts, including GHG emissions, of mining operations. Examples include testing electric mining vehicles and novel techniques for reducing the toxicity of mining effluents.
• Several projects under the CMRDD Program are researching energy efficient mineral processing, green reagents and ecotoxicological work to inform water quality guidelines and risk assessment models for mine waste management that will limit environmental impacts of new rare earth elements and lithium mining projects.
• Proposals under the CMIF will support upstream mining extraction via clean energy and transportation infrastructures, with clean energy defined as that coming from renewable and non-emitting energy sources, as well as connections to existing electrical grids. All projects are assessed against environmental criteria, including GHG emissions produced, other environmental impacts and potential to feed into zero-emissions technology manufacturing.

Partnerships with Indigenous Peoples

In Canada, many critical minerals deposits are located on or near the lands and waters Indigenous Peoples call home. In the spirit of reconciliation, meaningful partnerships with Indigenous groups must be based on transparency, consistency and mutual respect.

Successful resource development in Canada requires the participation and the free, prior and informed consent of Indigenous groups, not purely as a legal or regulatory obligation, but as a mechanism to induce collaboration, economic reconciliation, environmental stewardship, business excellence and innovation. As the critical minerals landscape evolves, meaningful partnerships with Indigenous groups will become increasingly prevalent, as is seen with the advent of Indigenous equity ownership in critical minerals projects and related infrastructures.

Here are some examples of initiatives to advance partnerships with Indigenous groups:

• The INRP Program has committed approximately $12.8 million of the $25 million it allocated to critical minerals. Funding has been provided to 9 projects to date. The funding supports a wide range of initiatives, from building capacity to developing partnerships with industry.
• NRCan launched the Indigenous Grants Stream of the CMIF, providing up to $3.5 million for eligible projects with the first national call for proposals having been made in March 2024. A total of up to $13.5 million in grant funding from now until 2030 will provide support for Indigenous groups to undertake engagement, capacity building and knowledge-sharing activities related to clean energy and transportation infrastructure projects that align with CMIF objectives. The aim of the grant funding is to ensure that Indigenous groups who may be impacted by such a project have the resources they need to meaningfully engage and benefit from critical minerals development.
• In November 2023, the CIB launched its Indigenous Equity Initiative designed to support Indigenous communities in purchasing equity stakes in infrastructure projects that the CIB is also investing in, including infrastructure that enables critical minerals development.
• In Budget 2024, the Government launched a $5-billion Indigenous Loan Guarantee Program to unlock access to capital for Indigenous communities, enabling them to share in the benefits of natural resource and energy projects in their territories and on their own terms.

Workforce of the future

Canada is committed to supporting the growth of a skilled and more representative workforce that matches the increasing demand for work and diversity of jobs available in the minerals and metals sector.
Our work in this area includes:

• Employment and Social Development Canada (ESDC), through the Sectoral Workforce Solutions Program, provided funding to the Mining Industry Human Resources Council to develop labour market information, update national occupational standards, certify new workers, train existing workers and provide wraparound supports in the mining sector.
• ESDC Indigenous labour market programs — the Indigenous Skills and Employment Training Program, and the Skills and Partnership Fund (SPF) — play an important role in helping to improve socio-economic conditions for Indigenous Peoples by reducing barriers to employment and supporting access to the labour market. As part of the latest SPF call for proposals in 2022, three projects with linkages to the mining sector are being funded, with total investments of just over $45 million. These projects are expected to result in over 400 Indigenous clients finding employment.
• A federal, provincial and territorial task team on the workforce of the future was established to put forth collaborative initiatives to diversify Canada’s mining workforce; and develop, attract and retain future talent in response to pressing labour market needs for the sector. After launching in May 2024 the Canadians of Mining social media campaign to showcase diverse and exciting career opportunities, the task team is now collaborating with the Mining Industry Human Resources Council to design an interactive career map to assist job seekers in navigating the diverse career opportunities within Canada’s mining industry.
• In June 2024, the Government of Canada passed the Canadian Sustainable Jobs Act, providing strong federal leadership through a framework of governance, accountability and engagement to support Canadians in seizing the economic opportunities of a low-carbon economy. The Act will ensure that Canada fosters the creation of sustainable jobs, supports workers and communities, creates opportunities for inclusion, and helps the workforce gain the necessary skills and training to fill the jobs of a low-carbon world. The Act supports the government in advancing the 10 key measures under Canada’s interim Sustainable Jobs Plan released in February 2023, and requires that Canada publish Sustainable Jobs Action Plans every 5 years, beginning in 2025. This framework will ensure ongoing action to create sustainable jobs for generations to come. It will also help ensure that Canada seizes the enormous opportunities of the low-carbon economy on the path to a net-zero economy.

International cooperation

Engagement with international partners is a key part of developing critical minerals value chains, attracting investment and creating opportunities for Canadian businesses. Canada is working with like-minded international partners through a range of bilateral and multilateral collaboration mechanisms. Priority issues include supply chain security, diversification, sustainable and responsible sourcing, and innovation through geoscience and R&D.

• Canada is prioritizing collaboration for its 2024 Chair position to the G7+Australia Conference on Critical Materials and Minerals; the IEA, where Canada is a Vice Chair to the Critical Minerals Working Party (CMWP); and the G7, where Canada will take over the presidency in 2025.
• Bilaterally, Canada now has critical minerals–focused collaboration mechanisms in place with the United States (2020), the United Kingdom (2023), the European Union (2021), France (2023), Germany (2023), Japan (2023), Australia (2024), Chile (2023) and South Korea (2023).
• The $70–million Global Partnerships Initiative (GPI) was created to advance Canada’s global leadership on critical minerals as set out in the Canadian Critical Minerals Strategy. Under the GPI, Canada has earmarked $11 million in contribution funding to offer flexibility and enable the opportunity to co-fund Canadian mining projects with international partners to strengthen and serve North American supply chains. It has also committed funding to a number of initiatives, including one to encourage innovative approaches to track critical minerals products through the value chain.
• Canada is the lead proponent for the Sustainable Critical Minerals Alliance (SCMA) launched in December 2020 with Australia, France, Germany, Japan, the United Kingdom, the United States and Sweden. It aims to drive the global uptake of responsible critical minerals supply chains and environmentally sustainable, socially inclusive and responsible mining, processing and recycling practices.
• Canada has promoted transparency in the mining sector through the Extractive Industries Transparency Initiative (EITI) and was instrumental in pushing for the stronger EITI Standard, which incorporates stronger reporting requirements on gender, civil society and anti-corruption.
• The April 2024 federal budget reaffirmed the Government’s intention to introduce legislation in 2024 to help eradicate forced labour from Canadian supply chains and strengthen the import prohibition on goods produced with forced labour.
• Delivering on the Strategy’s mandate, officials are actively considering additional measures to protect Canada’s national and economic security, increase production and diversify critical minerals supply chains. This includes the increased mandate of Export Development Canada, provided under Budget 2024, to expand its risk profile, including for critical minerals projects, as well as the Government’s efforts to ensure our foreign investment review regime is able to respond to the evolving threat landscape.

What we plan to do next year

The Canadian Critical Minerals Strategy is intended to be an evergreen document – forward-looking, iterative and long-term. While our work to date has laid the foundation for the years to come, Canadians can expect the Strategy to evolve over time to respond to global events, keep pace with technological change and meet Canada’s needs in this sphere.

Advancing international collaboration on critical minerals

Internationally, the Government of Canada will continue to strengthen global critical minerals supply chains and drive its priorities through bilateral collaboration mechanisms with its major trading partners while pursuing co-funding opportunities with like-minded countries.

Canada will focus international cooperation through key multilateral fora, including the IEA; the Conference on Critical Materials and Minerals; and, in particular, the G7, where Canada assumes the presidency in 2025. Canada intends to boost technical contributions to the International Organization for Standardization for the development of critical minerals sustainability standards; support work on ESG issues and traceability mechanisms; drive standards and sectoral transparency through the EITI; support sustainability-focused initiatives through the World Bank’s Extractives Global Programmatic Support Multi-Donor Trust Fund; and advance biodiversity and sustainable, socially inclusive and responsible mining, processing and recycling practices through the SCMA.

Working with provinces and territories to strengthen domestic value chains

At home, the Government of Canada will continue to engage and align critical minerals priorities in collaboration with provincial and territorial governments through fora such as the Regional Energy and Resource Tables to accelerate Canada’s economic transformation to a net-zero economy. This includes working to implement critical minerals actions identified in collaboration frameworks with British Columbia, Newfoundland and Labrador, and Nova Scotia, and continuing discussions with other provinces and territories to identify areas for collaborative action. Further progressing this work will ensure competitiveness and innovation in the global market for critical minerals while creating domestic economic opportunities, skilled jobs and prosperity for Canadians.

The Government of Canada will also collaborate with provinces and territories to advance areas of work identified during the July 2024 Energy and Mines Ministers’ Conference. This includes collective efforts to build resilient, sustainable and secure critical minerals value chains and position Canada as a global supplier. Ministers agreed to collectively assess provincial and territorial critical minerals value chains and to share respective regional priorities to address gaps and facilitate project linkages across Canada. Ministers also highlighted current challenges in raising capital for exploration, development and mineral processing, with agreement to further examine options with finance and industry leaders over the next year to increase competitiveness.

Environmental protection

While encouraging development, Canada will continue to protect the environment and advance our net-zero emissions goals. This means continuing research into energy efficient mineral processing, greener mining, mine waste management and recycling processes. We will also work with partners to strengthen circular strategies across value chains, including EV battery recycling and end-of-life product management.

Reconciliation

Importantly, our work to advance critical minerals development must continue to be done in a way that advances the Government of Canada’s commitment to reconciliation with Indigenous Peoples through meaningful consultation, early and ongoing engagement, investments in capacity supports, environmental stewardship, community safety and economic opportunities for Indigenous Peoples. Specifically, the Government will increase the participation of Indigenous communities and organizations in critical minerals projects through initiatives like the INRP and the CMIF. The Government will also enhance economic benefits for Indigenous communities through the ongoing development of a national benefits-sharing framework, which includes the Indigenous Loan Guarantee Program, to support Indigenous equity ownership in major projects in the natural resources sector.

Critical minerals represent both a vital resource and a generational opportunity for Canada’s future, and the Government of Canada remains committed to leading Canada’s collaborative approach to developing this resource.

 

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