Investments are flowing into mining and research projects with twelve international partners, including strategic collaborations for lithium, synthetic graphite, and rare earth elements.
Through a comprehensive initiative, Canada aims to strengthen its role as a producer of critical minerals and expand the corresponding value chains. To this end, 30 new project agreements and cooperation deals have been signed, involving twelve allied countries and organizations. The total investment amounts to nearly $9 billion USD, according to the Ministry of Natural Resources on Monday.
The announced strategic partnerships include Regen Resources Recovery Corporation’s project in Ontario to produce synthetic graphite on a former industrial site, as well as the rare earth recycling center of the Canadian start-up Cyclic Materials. Some of these projects have already secured offtake agreements with industry partners, such as Frontier Lithium, which is developing a lithium processing facility in Ontario, with the energy division of Japanese electronics company Panasonic.
In Addition, new collaborations were announced, including partnerships with India, the European Union, the European Investment Bank, and Greenland.
Government Funding in the Millions for Research and Development
Tim Hodgson, Canada’s Minister of Energy and Natural Resources, also unveiled government funding of nearly $50 million USD for research and development projects with international partners. This includes support for Rio Tinto’s gallium extraction project in Québec (we reported).
The investments are part of the Critical Minerals Production Alliance, an international platform initiated by the Canadian government to promote projects in the field of critical minerals. Since its launch in June 2025, the alliance has already mobilized a total of approximately $13.5 billion USD.
The mining nation Canada is already a major raw materials producer, including gold, coal, iron ore, copper, and nickel. In light of growing geopolitical tensions and the desire of many countries to reduce their dependence on China, the country also aims to expand production of critical minerals such as rare earths and lithium. These resources are required for strategic sectors like energy, high-tech, and defense, and demand is steadily rising as availability becomes increasingly limited. Canada positions itself here as a reliable alternative in the global raw materials market through high environmental standards, expertise, and political stability.
However, although the country has significant deposits of critical minerals, it currently accounts for only about 2 percent of global production, according to an analysis (PDF) by the Royal Bank of Canada. In addition, over the past 25 years, only 11 percent of domestic mining capital has been invested in critical minerals, leaving Canada behind its international competitors.
Photo: iStock/bloodua