Canada is spearheading a major push to strengthen its position in the global critical minerals market, announcing C$1.4 billion ($1 billion) in new investments and partnerships aimed at securing key materials for clean energy, defense, and advanced manufacturing. The funding package, unveiled at the Group of Seven energy ministers’ meeting in Toronto, is part of a broader G7 initiative launched earlier this year to reduce Western reliance on China’s dominant mineral supply chains.
As reported by Bloomberg, the Canadian government — led by Prime Minister Mark Carney — unveiled 25 new measures and agreements designed to support mining and processing projects across the country. The initiative will benefit more than a dozen companies, including Rio Tinto Group, Nouveau Monde Graphite Inc., Ucore Rare Metals Inc., Northern Graphite Corp., Focus Graphite Inc., and Torngat Metals Ltd.
Canadian Energy Minister Tim Hodgson emphasized the geopolitical importance of the move. “We have an incredible set of cards in our critical mineral resources. We have not effectively developed those in the past,” Hodgson told reporters. “These actions, with the support of our allies, are designed to do that and make sure Canada has all the cards it needs in a world where access to critical minerals is becoming a tool of political and geopolitical coercion.”
Among the headline projects, Rio Tinto received C$25 million to advance production at its scandium facility in Quebec — the first of its kind in North America. Scandium is a rare metal used to strengthen aluminum alloys critical for aerospace and defense industries. Meanwhile, Ucore Rare Metals secured conditional funding of C$36.3 million to expand its rare earth processing plant in Ontario.
The private sector has already responded positively to the government’s announcement. Shares of Nouveau Monde Graphite surged as much as 24% after the company revealed plans for a supply deal with the Canadian government, Panasonic Holdings Corp., and Traxys North America LLC, before closing 13% higher in Toronto trading. Northern Graphite — operator of North America’s only producing graphite mine — saw its stock rise by 29% following the announcement.
Not all projects, however, have received final approval. Norway’s Vianode AS, which plans to build a synthetic graphite plant in Ontario, was granted a letter of interest for up to $500 million in potential financing from Canada, alongside a $300 million commitment from Germany.
In a further step to safeguard national interests, Hodgson announced that critical minerals have now been formally designated as essential to Canada’s defense and national security. This allows the government to begin stockpiling key materials and participate in multilateral caching efforts with NATO allies. Some of the newly announced supply contracts will contribute directly to Canada’s stockpile, ensuring the military and automotive sectors have secure access to essential raw materials.
“These measures will strengthen our capabilities in strategic sectors and contribute to NATO and defense spending commitments,” Hodgson said in a statement. “By protecting domestic production under volatile global conditions, we ensure a secure supply of critical minerals to Canadian and allied defense industries.”
The G7’s coordinated approach to mineral security underscores a growing global competition for strategic resources — one that Bloomberg noted has become a new front in the broader geopolitical contest between the West and China. With Friday’s announcement, Canada is positioning itself not only as a reliable supplier for allies but also as a global leader in the clean energy and defense materials race.
