 |
| Critical Minerals |
C$12B Annual Opportunity Threatened by Investment Gaps and Permitting Delays
Canada could forfeit up to C$12 billion annually in critical minerals production by 2040 without immediate government intervention, according to a new report from the Canadian Climate Institute. Titled “Critical Path: Securing Canada’s Place in the Global Critical Minerals Race,” the report outlines an urgent need to de-risk investments and accelerate mining development for six essential materials: copper, nickel, lithium, graphite, cobalt, and rare earth elements.
Despite holding substantial reserves, Canada’s current production levels lag far behind what is needed to meet growing global and domestic demand. To remain competitive, the country must attract C$30 billion in investment to meet internal demand by 2040—and more than C$65 billion to support global markets, where demand for critical minerals is expected to double by the same year.
Financial Tools and Indigenous Partnerships Key to Unlocking Sector Growth
The report calls for bold policy measures to address long permitting timelines, commodity price volatility, and investor uncertainty. Recommended tools include government equity stakes, contracts for difference, and loan guarantees to share project risks with private investors.
Such mechanisms can help stabilize investment in a volatile sector with long payback periods. “Governments must move quickly to attract private capital and bring resources to market,” said Rick Smith, President of the Canadian Climate Institute. “But they must do so in a way that supports Indigenous self-determination and environmental integrity.”
Indigenous partnership is central to the report’s framework. JP Gladu, founder of Mokwateh, stressed that “all clean growth projects will intersect with Indigenous lands or communities,” and that respecting these relationships is essential for long-term success. The report recommends establishing long-term, equity-based partnerships to avoid delays and legal risks.
Streamlined Regulation and Circular Supply Chains Needed
To reduce bottlenecks, the report urges coordination across jurisdictions to streamline permitting, reduce duplication, and clarify accountability. At the same time, stronger environmental regulations and reclamation standards must accompany accelerated approvals.
Industry leaders also emphasized the importance of developing a domestic, circular supply chain that includes mining, processing, and recycling. “From mine to market to recovery, Canada must establish a battery metals value chain that supports clean tech and job creation,” said Sean de Vries, Executive Director of the Battery Metals Association of Canada.
John Stackhouse of RBC reinforced the urgency: “By deploying the right financial risk-sharing tools, Canadian governments can crowd-in private capital and ensure projects stay on track—even amid price swings and global competition.”
ScrapInsight Editorial Commentary
Canada stands at a crossroads. Without decisive action, it risks watching global competitors secure dominant positions in the critical minerals supply chain. Strategic investments in financing tools, permitting reform, and Indigenous-led development can help Canada become not only a supplier—but a value-added hub in the global clean energy economy.
Tags
RAREMETAL
