The move would mirror recent efforts by the United States.
Canada is preparing to take direct ownership stakes in mining and processing projects for critical minerals, stepping up its efforts to secure supplies of materials that are currently dominated by China. In an interview with Bloomberg, Natural Resources Minister Tim Hodgson stated that the government has begun reviewing projects that could receive equity funding through its recently unveiled $1.6 billion (C$2 billion) Critical Minerals Sovereign Fund, which is part of the upcoming budget. The focus includes rare-earth processing facilities and mines deemed strategically important but unable to attract sufficient private investment.
Ottawa is also fast-tracking approvals for several mining developments, including Nouveau Monde Graphite’s Phase 2 project in Quebec, Canada Nickel’s Crawford project in Ontario, and a tungsten–molybdenum mine in New Brunswick. Canada additionally plans to expand its stockpiles of minerals such as scandium and graphite, and is assessing other materials where domestic supply remains limited.
The Canadian measures mirror a growing U.S. push to rebuild critical-material supply chains outside China. Recent actions include the U.S. Department of Commerce’s $50 million stake to support Vulcan Elements’ expansion, and the Pentagon’s earlier strategic investment in rare-earth producer MP Materials to boost domestic processing and magnet production.
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