Canada’s federal government is rolling out more than CAD$1.4 billion in new investments and partnerships aimed at securing access to critical minerals, as part of a broader Group of Seven (G-7) initiative.
The funding package, announced Friday during the G-7 energy ministers’ meeting in Toronto, is expected to benefit more than a dozen companies, including Rio Tinto Group (NYSE: RIO), Nouveau Monde Graphite Inc. (NYSE: NMG), and Ucore Rare Metals Inc. (CVE: UCU).
The move aligns with the G-7’s push to reduce dependence on China, which dominates the global supply chain for many of these essential materials. Critical minerals such as lithium, copper, nickel and rare earth elements are crucial for clean energy, defense technology and advanced manufacturing. Ottawa’s latest commitments mark a significant escalation in efforts to boost domestic production and strengthen ties with allied nations.
Energy Minister Tim Hodgson said Canada holds vast mineral potential but has not fully developed it in past decades. The initiative reflects growing geopolitical tension over mineral access, with nations racing to secure stable supplies.
Among the key announcements, Rio Tinto will receive CAD$25 million to build a scandium production facility in Quebec. Scandium, a lightweight metal used in aerospace and defense applications, could help position Canada as a reliable supplier in a niche but growing market. Meanwhile, Ucore Rare Metals secured conditional funding of CAD$36.3 million to expand its rare earth processing plant in Ontario.
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Not all critical minerals investments are finalized
The government also named Northern Graphite, Focus Graphite Inc. (CVE: FMS), and Torngat Metals Ltd. as beneficiaries of the plan. Northern Graphite, which operates North America’s only producing graphite mine, saw its shares surge 29 per cent on the news. Nouveau Monde Graphite shares jumped as much as 24 per cent before closing 13 per cent higher, following the announcement of a prospective supply agreement with Canada, Panasonic Holdings Corp. (TYO: 6752) and Traxys North America LLC.
Not all the critical minerals investments are finalized.
Norway-based Vianode AS received a letter of interest for as much as CAD$500 million in potential Canadian financing and an additional CAD$300 million from Germany to advance a synthetic graphite facility in Ontario.
Additionally, Hodgson confirmed that Ottawa has formally designated critical minerals as essential to national defense and security. This step enables Canada to launch its own mineral stockpiling program and participate in allied caching efforts. Some agreements include future supply contracts allowing the federal government to store key minerals for defense and automaking industries.
Hodgson emphasized that these measures would enhance domestic capabilities and help meet NATO and defense spending commitments. By securing homegrown production under volatile global conditions, Canada aims to protect its supply chains and strengthen industrial resilience.
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