Canada is looking to position itself as a global player in critical mineral production to stave off potential supply chain risks as tensions continue to mount between the U.S. and China, according to a recent government report.
The federal government’s latest Critical Mineral Strategy Annual Report announced plans to expand the mining of over 30 minerals designated as critical with a particular emphasis on lithium, graphite, nickel, cobalt, copper, and rare earth elements.
While U.S.-China trade tensions continue to escalate, concerns also grow that Canada has become too dependent on Chinese suppliers for critical technology inputs such as rare earth magnets needed for battery metals and solar materials.
According to data from the report, of the six major minerals mentioned, China is by far the largest supplier of all but nickel, where Indonesia outpaces their production but only by 9%.
However, China produces 92% of the world’s rare earth elements, 91% of its natural graphite, 77% of all cobalt, 65% of lithium and 44% of copper.
“Canada is establishing itself as a globally competitive extractor and manufacturer of battery-grade materials,” said Minister of Innovation, Science and Industry François-Philippe Champagne. “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.”
The five core strategies of the government’s plan, launched in 2022 and given $4 billion in funding includes; enhancing global security and partnerships with allies, supporting economic growth, competitiveness and job creation, promoting climate action and environmental protection, advancing reconciliation with Indigenous Peoples, fostering diverse and inclusive workforces and communities.
BloombergNEF ranked Canada as the country with the highest potential to form a secure, reliable and sustainable battery supply chain last year, calling it a “raw materials powerhouse.”
It also ranked Canada as the second most competitive country in overall critical minerals production in 2023 based on “factors such as political stability, environmental frameworks and mineral reserves,” reads the report.
Bloomberg also named Canada as having the best environmental impact assessment framework of any country.
“Global demand for critical minerals is expected to double by 2040, according to the International Energy Agency,” said Minister of Energy and Natural Resources Jonathan Wilkinson.
“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.”