Accelerating Canada's Sector through the Critical Minerals Strategy

Metals and Mining Review | Saturday, April 01, 2023

Canada is in a good position to boost its competitiveness in the global and North American electric car supply chains and to aid in the shift to more environmentally friendly transportation.

FREMONT, CA: In today’s world, critical minerals are very important in today's society, from electric vehicles (EVs) to semiconductors. They serve as the cornerstone of contemporary technology and are essential to boosting the economy and achieving a net-zero future. Many essential minerals for the energy transition are in plentiful supply in Canada. About half of the world's publicly traded mining and mineral exploration companies are based in this nation. However, the Canadian industry is pushing significant projects like "Towards Sustainable Mining" and is a global pioneer in ethical mining.

The Canadian government has launched several measures in recent years to capitalize on these benefits and speed up the supply chain for essential minerals even more. The publication of the Canada Critical Minerals Plan in December 2022 was among the most significant of these. The strategy outlined a course of action to help Canada become a preferred supplier of essential minerals around the world and the clean digital technologies those minerals enable.

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Canada is a world leader in the production of several vital minerals, including those that are used to make supply chains for battery materials. A big producer of scandium, Canada is also the fourth-largest primary aluminum producer in the world. In addition, they have a number of high-grade, quality deposits of a variety of essential minerals that will assist satisfy rising domestic, North American, and global demand. They also have some of the greatest reserves of Rare Earth Elements (REEs) in the world.

In the western hemisphere, Canada is the only country having deposits of every mineral required for modern batteries. All of the essential materials, such as nickel, graphite, cobalt, copper, lithium, and manganese, which are needed to make sophisticated batteries for EVs, are now produced or stored in Canada. For the production of permanent magnets for EV traction motors, Canada also has an abundance of REE.

Canada is working to leverage its resource wealth, environmental stewardship, industrial know-how, and trade relations to meet the growing global demand for essential minerals and value-added goods like electric vehicle batteries as it is a trusted supplier of mining products with ethical sourcing.

In addition, Canada offers a workforce that is highly qualified and talented and at the forefront of innovation and technology. They are the main reason that Canada is a reputable manufacturer of automobiles and automotive components that are deeply integrated into the North American automotive supply chain. Additionally, Canada's 15 free trade agreements with 49 additional nations give 1.5 billion customers worldwide preferential market access.

Mining Landscape in Canada accelerated in recent years

Prior to the possibility of seeing actual market demand and price incentives, there are traditionally long lead times for the development of essential mining assets such as mines and processing facilities. To maximize their economic sustainability, future development projects in rural, remote, and northern areas may need enabling infrastructure. Together, these factors raise project risk.

Amidst this, Canada is already the world's top producer of potash and is also a top five producer of uranium, indium, niobium, titanium concentrate, and platinum group metals. The Government of Canada aims to strengthen its already world-class mining industry by providing financial and administrative support to hasten the development of strategic projects in critical mineral mining, processing, manufacturing, and waste reduction (e.g., through recycling and mining value from waste). Strategic investments in critical mineral-rich regions are also being made, leveraging the resources and expertise of federal trade and business development organizations. Finally, it also entails making use of already-running initiatives like the Strategic Innovation Fund, which has made large investments in crucial mineral value chains.

Over the last few years, Canada's zero-emission vehicle market share has steadily increased, and this trend is expected to continue. According to Transport Canada, annual zero-emission vehicle (ZEV) sales will increase to 1.2 million by 2030, with a total of 4.6 million ZEVs on the road by 2030. In total, this would imply that ZEVs would account for approximately 16 percent of all light-duty vehicles on the road in 2030. This increase has had a significant impact on the Canadian mining landscape.

Key Objectives of Canada’s Critical Minerals Strategy

Critical minerals, which form the basis of contemporary technology, represent a generational opportunity for Canada's workforce, economy, and net-zero future. The world requires essential minerals to construct tomorrow's products, including semiconductors, wind turbines, solar panels, and better batteries for storage and transportation. Practically speaking, without the necessary minerals, there can be no energy transformation. The Government of Canada will develop a strong, internationally competitive economy, generate quality employment opportunities, and take effective action to combat climate change by increasing Canadian expertise at every stage along the critical mineral value chain under the direction of the Critical Minerals Strategy, from mining to manufacturing to recycling.

Canada is well positioned to become a secure and reliable supplier of critical minerals and value-added products for global markets with its vast resources and manufacturing capacity. Even so, initiatives must be in line with Canada's principles and objectives, which include respect for Indigenous Peoples' rights, safe and ethical working conditions, and environmental preservation. Critical mineral development must be environmentally responsible, produce results that advance nature, and use cutting-edge conservation and reclamation techniques.

The Canadian Critical Minerals Strategy can tackle climate change effectively, build a strong, globally competitive economy, and create excellent jobs. This will be accomplished through six strategic projects and priority areas, including:

 1. Driving exploration, R&D, and innovation

2. Increasing the pace of responsible project development

3. Infrastructure Development for Sustainability

4. Promoting reconciliation with Indigenous Peoples

5. Building prosperous communities and a diverse workforce

6. Enhancing International Security and Leadership

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