Canada Unveils $6.4 Billion Investment to Bolster Critical Minerals Supply Chains with Allied Nations

Canada Strengthens Critical Minerals Sector with Major Investment

Toronto, Ontario – Canada has announced a significant investment of $6.4 billion across 26 new projects and partnerships aimed at accelerating critical mineral development and fortifying global supply chains. The announcement was made on October 31, 2025, by the Honourable Tim Hodgson, Minister of Energy and Natural Resources, during the G7 Energy and Environment Ministers' Meeting in Toronto. This strategic move involves collaboration with nine allied countries and is designed to secure resources vital for clean energy, advanced manufacturing, and defense industries.

International Collaboration and Strategic Objectives

The initiative is a key component of the Critical Minerals Production Alliance, a Canada-led G7 initiative established at the G7 Leaders' Summit in Kananaskis, Alberta, in June 2025. This alliance, alongside the G7 Critical Minerals Action Plan (CMAP), seeks to diversify and secure global critical mineral production and supply, reducing reliance on concentrated supply chains. The allied countries partnering with Canada include France, Germany, Italy, Japan, Luxembourg, Norway, the United States, Australia, and Ukraine.

Minister Hodgson emphasized the importance of these partnerships in safeguarding Canada and its allies against supply chain vulnerabilities and reducing dependence on unreliable sources. The goal is to bring critical mineral projects into production with high standards that drive economic growth and protect national security.

Key Projects and Targeted Minerals

The 26 investments and partnerships will mobilize public and private capital to accelerate projects focusing on critical minerals such as graphite, rare earth elements (REE), and scandium. Notable projects receiving support include:

• Nouveau Monde Graphite's Matawinie Mine near Montreal, Quebec, which has secured offtake arrangements with the Government of Canada, Panasonic (Japan), and Traxys (Luxembourg).
• Rio Tinto's Scandium Production Plant in Sorel-Tracy, Quebec, benefiting from an equity-like royalty investment of approximately $25 million from the Canada Growth Fund and an offtake arrangement with the Government of Canada.
• Ucore Rare Metals' rare earth processing plant in Ontario, which received conditional funding of up to $36.3 million to expand its operations.

These projects are crucial for developing domestic and global value chains for the green and digital economy.

National Security and Economic Impact

In a significant step, Canada is officially designating certain critical minerals as a national security priority under the Defence Production Act. This designation allows the federal government to support the mining industry by guaranteeing a buyer and a minimum price, and enables Canada to begin its own defense stockpiling regime and participate in multilateral stockpiling efforts with NATO allies.

The broader economic objectives of this strategy include supporting economic growth, competitiveness, and job creation, promoting climate action, and advancing reconciliation with Indigenous peoples. The investments are foundational to Canada's sovereignty, competitiveness, and leadership in the global economy, ensuring a secure supply of critical minerals for Canadian and allied defense industries.