Canadian Prime Minister Mark Carney secured a $70 billion investment pledge from the UAE, focusing on energy, AI logistics, and mining. Canada aims to double non-US exports and attract $1 trillion in new investments. Carney also announced a $1 billion project to expand critical minerals processing capacity in Canada.
Despite Canada’s mining history, it only accounts for 5% of global mine production for critical minerals. China dominates the refining production of key minerals, holding a significant market share. Canada is focusing on growing its critical minerals supply chain, from mining to refining to end product manufacturing.
Canada’s first rare earths refinery opened in 2024 in Saskatchewan, producing 400 tonnes of NdPr metals per year. In comparison, China produced 83,697 tonnes of NdPr metal in the same year. The US is the primary export destination for 63% of Canadian critical minerals. Canada aims to secure and diversify its critical minerals supply chains.
Canada’s critical minerals list includes 34 essential minerals for economic and national security. Securing critical minerals supply chains involves identifying extraction and processing parties in Canada. Concerns over foreign ownership of resources have been raised, with only eight of 32 critical mineral processing centers owned by Canadian companies. In October, Canada announced the first round of projects under a G7 critical minerals production alliance to counter China’s dominance. Initiatives include offtake agreements for a Quebec graphite mine and investments in rare earth elements refinery in Ontario, with potential financing from Export Development Canada.
Canada is supporting a Norwegian company’s plan to build a synthetic graphite plant in Ontario and approved funding for a Ucore Rare Metals facility in Kingston. Global demand for critical minerals is expected to increase significantly, with some estimates suggesting a sixfold increase in the energy sector’s needs by 2040.
Canada has significant rare earth element reserves, with potential for growth in the sector. However, the country only has one producing rare earths mine compared to China’s thousands of mines. Despite government support, Canada still has a long way to go to become relevant in the mining and refining of critical minerals.
Read more at Yahoo Finance: Canada As A Critical Minerals Refiner Is Globally Irrelevant