Canada must secure an estimated $30 billion in new investments to meet its rapidly growing demand for critical minerals essential to clean energy technologies and the transition to a net-zero economy, according to a new report released this week.
The report, commissioned by Natural Resources Canada and authored by the not-for-profit Canadian Climate Institute, underscores the urgent need for substantial funding and policy alignment to scale up the production and processing of key minerals. These include lithium, nickel, cobalt, graphite, and rare earth elements — all crucial components in electric vehicle (EV) batteries, renewable energy systems, and advanced electronics.
The study paints a sobering picture of Canada’s current critical mineral capabilities, emphasizing that current production levels and investment flows are insufficient to meet future domestic and international demand. The global push toward decarbonization, combined with heightened geopolitical competition for mineral security, has put Canada at a strategic crossroads.
“Canada has significant geological potential, but the country must accelerate both private and public investment to build a reliable, sustainable supply chain of critical minerals,” the report notes.
The Investment Gap
While Canada has taken initial steps to develop a critical minerals strategy — including government incentives, funding programs, and regulatory reforms — the report warns that these efforts fall short of what is required. The projected $30 billion investment would fund exploration, extraction, refining, and the development of new supply chain infrastructure over the coming decade.
In comparison, countries such as the United States and Australia are ramping up investment and policy support for their critical mineral sectors, positioning themselves as global leaders in the supply of clean energy resources.
“Without bold and immediate action, Canada risks missing out on a generational economic opportunity and weakening its competitive position in the global race for clean technology leadership,” the report adds.
A Strategic Economic Opportunity
The report also highlights that bolstering the critical minerals sector could contribute significantly to job creation, regional economic development, and Canada’s climate goals. Notably, critical minerals play a foundational role in producing zero-emission vehicles, solar panels, wind turbines, and energy storage systems.
“Canada’s mining sector has the potential to be a cornerstone of the net-zero economy, but it needs more capital, coordinated policies, and faster permitting timelines to succeed,” said a senior analyst involved in the report.
The Canadian government has previously committed over $3.8 billion toward critical mineral initiatives, including tax credits for exploration and development, as part of its national strategy. However, experts warn that this is a fraction of what’s needed to scale up to global competitiveness.
Recommendations for Action
To close the $30 billion gap, the report recommends:
Scaling public-private investment partnerships
Streamlining permitting and regulatory processes
Investing in Indigenous partnerships and community engagement
Enhancing processing and refining capacity within Canada
Aligning provincial and federal policies for cohesive implementation
The call for investment comes at a time when global demand for critical minerals is expected to surge by over 400% by 2040, according to estimates by the International Energy Agency.
As countries around the world look to secure stable and ethical sources of these essential materials, Canada’s ability to act swiftly and strategically will determine its role in the future of clean energy.
Swifteradio.com
