Canada's Priority Minerals

The Priority Minerals Designation

Canada's priority minerals were selected based on a multi-factor assessment that weighed each mineral's strategic importance to the energy transition and allied nation security, Canada's geological potential and existing production infrastructure, the advanced state of the project pipeline, and the level of demand expressed by partner nations through bilateral agreements. The priority designation directs the largest share of the nearly $4 billion CAD in federal critical minerals funding toward projects targeting these six materials.

The priority minerals are all central to the electrification and clean energy transition: lithium, graphite, nickel, cobalt, copper, and rare earth elements. Together, these six materials form the backbone of electric vehicle battery manufacturing, renewable energy generation, grid modernization, and the permanent magnets used in EV motors and wind turbines. Canada's ability to supply these materials from domestic sources, processed to battery-grade or magnet-grade specifications, positions it as a critical alternative to supply chains currently dominated by China.

The Six Priority Minerals

Lithium

Canada's lithium sector is rapidly emerging as a global force. Unlike Australia's hard-rock spodumene production, Canada's lithium resources span multiple deposit types: hard-rock spodumene in Quebec and Ontario, lithium-bearing brines in Alberta and Saskatchewan, and sedimentary clay deposits in several provinces. This diversity of deposit types provides multiple pathways to production and allows Canada to develop lithium resources using different extraction technologies suited to each geology.

Quebec's James Bay region has become the focal point of Canadian lithium development, with projects including Patriot Battery Metals' Corvette deposit, Nemaska Lithium's Whabouchi mine (backed by Livent and the Quebec government), and Sayona Mining's North American Lithium operation. Alberta's Leduc Formation contains lithium-rich brines that could support direct lithium extraction (DLE) technologies, potentially providing a lower-carbon production pathway. The federal government has committed significant funding to lithium development, including $1.5 billion through the Strategic Innovation Fund for Umicore's cathode materials plant and substantial investments in lithium processing infrastructure.

Graphite

Graphite is essential for battery anodes, and China currently controls approximately 65% of global natural graphite mining and virtually all anode material processing. Canada possesses significant graphite resources in Quebec and Ontario, with several advanced-stage projects positioned to contribute to supply chain diversification. Nouveau Monde Graphite's Matawinie project in Quebec aims to produce battery-grade anode material using a vertically integrated mine-to-anode approach, powered by Quebec's clean hydroelectricity. Northern Graphite's Lac des Iles operation is one of only two active natural graphite mines in North America.

The priority designation for graphite reflects the urgency of developing non-Chinese anode material supply chains. As EV battery production scales up in North America, with gigafactories being built by Stellantis-LGES, Ford-SK On, Honda-LGES, and others in Ontario and Quebec, the demand for locally sourced anode material will grow dramatically. Canadian graphite projects that achieve production and downstream processing capacity will be well-positioned to supply these facilities and qualify for Inflation Reduction Act incentives.

Nickel

Canada is the world's fifth-largest nickel producer, with established mining operations in Ontario (Sudbury Basin), Newfoundland and Labrador (Voisey's Bay), Quebec, and Manitoba. Canadian nickel production is predominantly Class 1 (high-purity), making it suitable for use in high-nickel battery cathodes such as NMC (nickel-manganese-cobalt) chemistries that dominate the EV market for premium vehicles with longer range requirements.

The Sudbury Basin in Ontario, one of the world's largest nickel-copper mining districts, has been producing nickel for over a century. Vale's Sudbury operations and Glencore's Sudbury Integrated Nickel Operations continue to produce refined nickel, cobalt, and platinum group metals. Voisey's Bay in Labrador, also operated by Vale, produces nickel concentrate that is processed at the Long Harbour hydrometallurgical plant, one of the most modern nickel processing facilities in the world. Canada's nickel production is environmentally and ethically benchmarked, giving it a competitive edge as automakers and battery manufacturers face increasing scrutiny over their supply chains.

Cobalt

Canadian cobalt is produced primarily as a co-product of nickel mining, with the majority of output coming from operations in Ontario and Newfoundland and Labrador. Canada's cobalt production is fully traceable, produced under strict environmental and labor regulations, and free from the human rights concerns associated with artisanal cobalt mining in the Democratic Republic of the Congo. This makes Canadian cobalt highly attractive to automakers and battery manufacturers implementing responsible sourcing policies.

The Ontario Cobalt Belt, centered on the historic mining town of Cobalt, is experiencing renewed exploration interest as companies seek to develop new cobalt-focused projects. While the region's silver-cobalt deposits were among the first cobalt sources in the world, modern exploration is focused on larger, lower-grade deposits amenable to bulk mining techniques. The First Cobalt Refinery in Temiskaming Shores, Ontario (now operated by Electra Battery Materials), is being developed as North America's only cobalt sulfate refinery, designed to produce battery-grade cobalt sulfate for the EV market.

Copper

Copper is essential to the energy transition as the primary conductor material for electric vehicles, charging infrastructure, power grids, renewable energy systems, and data centers. Canada is the world's eighth-largest copper producer, with operations concentrated in British Columbia, Ontario, and Quebec. Major operations include Teck Resources' Highland Valley Copper mine in BC, Hudbay Minerals' Copper Mountain mine in BC, and Vale's Sudbury operations in Ontario.

Canada's copper supply is expected to grow as new projects advance through development. The Ajax copper-gold project in BC, New Afton in BC, and the Copper World project in the Yukon-BC border region represent significant additions to the Canadian copper pipeline. The priority designation for copper reflects the growing consensus that global copper supply will struggle to keep pace with electrification-driven demand growth, making reliable, allied-nation sources of copper increasingly valuable from both economic and security perspectives.

Rare Earth Elements

Canada's rare earth potential is substantial but largely undeveloped. Several advanced-stage projects are positioned to bring Canadian rare earth production online, reducing allied-nation dependence on Chinese supply. Vital Metals' Nechalacho project in the Northwest Territories has begun small-scale production, extracting bastnaesite ore for processing. Ucore Rare Metals is developing the RapidSX separation technology at its Strategic Metals Complex in Kingston, Ontario, which aims to provide a North American rare earth separation capability.

The Saskatchewan Research Council's rare earth processing facility in Saskatoon is developing the capacity to produce separated rare earth oxides using a Canadian-developed solvent extraction process. Quest Rare Minerals' Strange Lake project in northern Quebec-Labrador holds one of the largest heavy rare earth deposits outside China, though its remote location presents significant infrastructure challenges. The priority designation ensures that rare earth projects receive maximum policy attention and financial support, reflecting the strategic urgency of developing non-Chinese rare earth supply chains for permanent magnet applications.

Financial Support for Priority Mineral Projects

Priority mineral projects have access to the full suite of federal financial instruments established under the Critical Minerals Strategy. The Strategic Innovation Fund provides grants and repayable contributions for large-scale processing and manufacturing facilities. The Canada Infrastructure Bank offers financing for enabling infrastructure such as roads, rail, power generation, and transmission lines that support critical mineral projects. The Clean Fuels Fund and the Net Zero Accelerator provide additional funding for projects that reduce carbon emissions in mineral processing.

Provincial governments supplement federal support with their own programs. Quebec's Plan for the Development of Critical and Strategic Minerals provides funding for exploration, feasibility studies, and processing infrastructure, while Ontario's Critical Minerals Strategy includes streamlined permitting processes and financial incentives for projects in the Ring of Fire region and elsewhere. British Columbia, Saskatchewan, and the Northwest Territories have similarly developed territorial critical minerals strategies aligned with federal priorities.

International Partnerships and Market Access

Canada's priority minerals are the primary focus of its bilateral and multilateral critical minerals partnerships. The Canada-U.S. Joint Action Plan ensures that Canadian minerals qualify as domestic content for U.S. policy purposes, including the Inflation Reduction Act's clean vehicle tax credits. The Canada-EU Strategic Partnership on Raw Materials provides a framework for European investment in Canadian critical mineral projects. Partnerships with Japan, South Korea, and India expand the market opportunities for Canadian priority mineral production.

These partnerships are already producing concrete results. Japanese firms including Toyota Tsusho, Sumitomo, and Panasonic have invested in Canadian lithium, nickel, and cobalt projects. South Korean companies including POSCO, LG Energy Solution, and Samsung SDI have established supply agreements and processing partnerships with Canadian producers. European automakers including Volkswagen, Stellantis, and Mercedes-Benz have committed to sourcing battery materials from Canadian supply chains, with Volkswagen selecting St. Thomas, Ontario as the site for its first North American gigafactory, citing proximity to Canadian critical mineral supply as a key factor.