Canada to Buy Stakes in Critical Minerals Projects

Canada will take equity stakes in mining and processing projects to shore up supplies of critical minerals dominated by China, Natural Resources Minister Tim Hodgson said.

The government has begun studying candidate projects - including mines and downstream processing facilities - that would be deemed in the national interest but lack private equity financing. Hodgson warned some rare-earths processing plants likely won’t be built without equity-like public support because of concentrated global supply chains.

Critical inputs such as lithium, graphite and rare-earths like terbium and dysprosium are vital for electric motors, electronics and defence systems. The move echoes recent U.S. investments in domestic miners and processors aimed at diversifying supply away from China.

Ottawa will fast-track approvals for selected Major Projects, including Nouveau Monde Graphite’s phase 2 in Quebec, Canada Nickel’s Crawford project in Ontario and a tungsten–molybdenum mine in New Brunswick; those names have already seen sharp share gains this week.

A C$2 billion critical minerals sovereign fund will provide capital for equity stakes, loan guarantees and offtake deals, and the Canada Growth Fund is vetting eligible investments. The government is also expanding stockpiles - already accumulating scandium and graphite - and conducting a mapping exercise to identify material deficits.

"Where we see a significant deficit, we will absolutely look at stockpiling as a way to protect Canadian industries and the economy," Hodgson said.