SECURING CANADA’S PLACE IN THE GLOBAL CRITICAL MINERALS RACE

The report argues that Canada can capitalize on the global energy transition by increasing production of cobalt, copper, lithium, nickel, graphite, and rare earth elements. To achieve this, it recommends that the federal government implement financial risk-sharing agreements to mitigate price volatility, support Indigenous self-determination and equity ownership, strengthen provincial mining regulations to meet international environmental standards, and avoid shortening regulatory reviews by cutting environmental or consultation safeguards.

• Global demand for critical minerals is projected to rise significantly by 2050 to support clean energy technologies, with lithium demand specifically expected to grow between 11 and 17 times from 2023 to 2050. The global mining sector may require an additional USD$480 billion to $750 billion in capital investment to meet decarbonization needs.
• Canada has a significant opportunity to meet domestic demand—estimated to exceed $16 billion annually by 2040—and provide a secure supply chain for the U.S. and EU to reduce reliance on China. However, current investment is insufficient; Canada needs between $30 billion and $65 billion in new upstream mining investment by 2040, requiring more than 30 new mines.
• High price volatility, particularly in immature markets for lithium and rare earth elements, creates significant financial risks that delay project development. The report suggests the federal government use an arms-length financial institution to provide risk-sharing tools such as equity investments, contracts-for-difference, and offtake agreements.
• Respecting Indigenous self-determination and the principles of free, prior, and informed consent is essential for project success. Strengthening Indigenous participation and providing access to capital for equity ownership can reduce investor risk by providing early clarity on project opposition and preventing lengthy litigation.
• Canadian mining regulations, specifically regarding tailings management and mine closure, often fall short of leading international standards, which increases risks for local communities and compromises supply reliability. Provincial governments should make standards like Towards Sustainable Mining (TSM) or the Global Industry Standards for Tailings Management (GISTM) mandatory.
• While regulatory and permitting delays are cited as a primary barrier to investment, the report warns that fast-tracking projects by reducing environmental safeguards or Indigenous consultations is likely to backfire by inviting local opposition and costly court proceedings.

APA

Canadian Climate Institute (2025). SECURING CANADA’S PLACE IN THE GLOBAL CRITICAL MINERALS RACE. https://climateinstitute.ca/wp-content/uploads/2025/06/Executive-Summary-Critical-path-Canadian-Climate-Institute.pdf

Chicago

Canadian Climate Institute. SECURING CANADA’S PLACE IN THE GLOBAL CRITICAL MINERALS RACE. 2025. https://climateinstitute.ca/wp-content/uploads/2025/06/Executive-Summary-Critical-path-Canadian-Climate-Institute.pdf.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=SECURING CANADA’S PLACE IN THE GLOBAL CRITICAL MINERALS RACE |date=June 2025 |url=https://climateinstitute.ca/wp-content/uploads/2025/06/Executive-Summary-Critical-path-Canadian-Climate-Institute.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2025securing, author = {{Canadian Climate Institute}}, title = {{SECURING CANADA’S PLACE IN THE GLOBAL CRITICAL MINERALS RACE}}, institution = {Canadian Climate Institute}, year = {2025}, month = jun, url = {https://climateinstitute.ca/wp-content/uploads/2025/06/Executive-Summary-Critical-path-Canadian-Climate-Institute.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }