Canada unveils $6.4B in critical minerals projects under new G7 alliance

Canada announced the first round of strategic projects under the new Critical Minerals Production Alliance during the G7 Energy and Environment Ministers’ Meeting in Toronto, a move aimed at strengthening global supply chains for key resources.

Tim Hodgson, minister of energy and natural resources, said the initiative will “accelerate the development of secure critical minerals supply chains” through 26 new investments, partnerships and measures valued at $6.4 billion.

The projects include mobilizing public and private capital for graphite, rare earth element and scandium production, as well as new offtake arrangements between Canada, Nouveau Monde Graphite and Rio Tinto. Canada is also partnering with nine allied countries, including France, Germany, Japan and the U.S., to co-invest in critical minerals projects.

As part of the G7 Critical Minerals Action Plan, Hodgson announced up to $20.2 million in support for international research and development partnerships and released a new Roadmap to Promote Standards-Based Markets for Critical Minerals.

To bolster national security, the federal government plans to use the Defence Production Act to stockpile critical minerals, support domestic and allied defence industries and strengthen Arctic sovereignty.

“Canada is moving quickly to secure the critical minerals that power our clean energy future, advanced manufacturing and national defence,” Hodgson said. “These investments are foundational to Canada’s sovereignty, competitiveness and leadership in the global economy.”

The Mining Association of Canada (MAC) praised the announcement, calling it a major step forward in advancing the country’s critical minerals strategy.

“While Canada’s Critical Minerals Strategy has been in place since 2022, this announcement marks the most significant step in advancing that strategy,” said Pierre Gratton, MAC president and CEO. “These measures will help bring Canada’s vast critical mineral resources to diversified global markets, reduce overreliance on China and strengthen our shared security and prosperity.”

Gratton said the mining sector is ready to support the government’s efforts to position Canada as a trusted supplier of minerals vital to clean energy, manufacturing and defence.