The alliance members are currently meeting in The Hague to discuss raising the minimum defense spending target.
In an interview with CNN on the sidelines of the NATO summit in The Hague, Canadian Prime Minister Mark Carney emphasized Canada’s strategic advantage in critical minerals as a key lever to help the country meet NATO’s defense spending targets. At the summit, the alliance members are considering raising the minimum defense spending target from 2% to 5% of each country’s gross domestic product. The proposed increase includes 3.5% for core defense investments and 1.5% for related infrastructure. For Canada, this would amount to an estimated annual commitment of approximately $109 billion (CAD $150 billion), according to Carney.
The Prime Minister argues that investments in Canada’s critical minerals sector and related transportation infrastructure, such as ports, railways, bridges, and roads, could help achieve the 1.5% part. These infrastructure and supply chain improvements are essential for supporting both domestic defense capabilities and NATO’s broader strategic needs, as they align with the alliance’s resource strategy.
NATO’s Growing Focus on Critical Minerals
In 2024, NATO identified 12 critical minerals essential to the alliance’s defense industry. Among them are, for example, germanium for infrared optics, rare earth elements for magnets, and titanium for alloys and ammunition production. Canada could become a key supplier of the raw materials essential to NATO’s defense priorities, as it is one of the few nations with confirmed reserves of a broad range of critical minerals, including all 12 prioritized by NATO. Already today, Canada is a leading producer of cobalt and graphite, both of which are on NATO’s list, as well as multiple other commodities, according to the U.S. Geological Survey.
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