Canada holds a powerful hand in the global race for critical minerals, according to Energy and Natural Resources Minister Tim Hodgson.
Speaking at the Prospectors and Developers Association of Canada convention in Toronto, Hodgson said the country’s mineral wealth gives it strategic leverage in a shifting geopolitical order. However, he stressed that Canada must build its own processing capacity to capture the full economic value.
He argued that critical minerals increasingly define national security and economic sovereignty. Consequently, Ottawa is pushing to move more processing and refining inside Canadian borders.
Hodgson told BNN Bloomberg the government is moving at speeds rarely seen outside wartime mobilization. He said the moment demands rapid investment across the entire mineral supply chain.
The minister framed the effort as a response to China’s dominance in global mineral processing. Meanwhile, Western countries attempt to reduce their reliance on foreign-controlled supply chains.
China currently processes a large share of the world’s lithium, rare earths and other strategic minerals. Consequently, governments across North America and Europe now treat the issue as a security priority.
Canada launched new partnerships to address that vulnerability. Additionally, Hodgson announced 30 federal agreements with 12 allied countries under the Critical Minerals Production Alliance.
Prime Minister Mark Carney established the alliance last year. The initiative aims to build secure mineral supply chains among allied economies.
Hodgson said the partnerships will help unlock about CAD$12.1 billion in mining and processing investment across Canada. Furthermore, the broader alliance is expected to direct roughly CAD$18.5 billion toward Canada’s mineral sector.
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Copper, zinc and nickel hubs for valuable critical minerals
Ottawa also wants to rebuild domestic processing capacity. However, many countries shut down smelters and refineries over the past several decades.
Hodgson said Canada now plans to reverse that trend by reinvesting in its industrial base. Additionally, the country hopes to develop advanced extraction technologies tied to existing smelters.
He pointed to Canadian copper, zinc and nickel facilities as potential hubs for recovering valuable critical minerals. In addition, new technologies could extract strategic materials from existing ore streams.
Federal financing programs support that effort. Consequently, the Canada Growth Fund helps companies prove new mineral-processing technologies before scaling them globally.
The government is already supporting several projects. For example, Ottawa is assisting processing facilities tied to the Crawford Nickel Project in Timmins, led by Canada Nickel Company Inc. (CVE: CNC).
Officials are also backing work connected to a copper development in Saskatchewan operated by Foran Mining Corporation (TSE: FOM). Meanwhile, Ottawa continues discussions with additional rare earth refiners.
Large federal funds also aim to close infrastructure gaps in the mineral supply chain. Additionally, the CAD$1.5 billion First and Last Mile Fund supports transportation and processing infrastructure.
Ottawa also created a CAD$2 billion Critical Minerals Sovereign Fund. Consequently, the program aims to accelerate domestic projects that strengthen Canada’s role in global supply chains.
Hodgson said Natural Resources Canada staff have taken on the challenge aggressively. He added that the department now treats critical minerals as a national strategic priority.
That push reflects the enormous scale of the global critical minerals market and the rapid pace of expected growth.
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Critical minerals demand set to climb fast
Demand for critical minerals has surged as governments and industries race to secure supplies for batteries, electric vehicles and advanced electronics. According to DataM Intelligence, the global critical minerals market was valued at about USD$328 billion in 2024.
The firm projects it could reach roughly USD$586 billion by 2032, representing annual growth of about 7.5 per cent. Meanwhile, other analysts expect even faster expansion. According to Meticulous Research, the market could grow from about USD$318 billion in 2025 to nearly USD$890 billion by 2036. That projection implies roughly 9 per cent annual growth.
Additionally, analysts say demand will continue rising as countries build electric vehicle fleets, renewable power systems and advanced defence technologies. Minerals such as lithium, nickel, copper and rare earth elements form the backbone of those industries. Consequently, governments increasingly treat access to these materials as both an economic and national security priority.
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