At a time when strategic minerals are at the center of attention due to their growing strategic value, Canada appears to have taken important steps to secure supplies of the materials most important to its economic and industrial needs. As explained in a recent Bloomberg article, the Canadian government plans to acquire stakes in several projects aimed at the production and processing of strategically important mineral resources. According to some Canadian authorities cited by Bloomberg, this decision is part of a broader program aimed specifically at securing Canada’s resources during this particular historical moment.
The Bloomberg article, by Jacob Lorinc, explains how the Canadian government has already begun identifying sourcing projects that could receive these equity investments. This investment program would also include sourcing operations and related processing facilities. For Canada, as the article states, these issues are directly linked to national interests.
Lithium, Graphite and Rare Earths
Canada‘s focus is on lithium and graphite, as well as rare earth elements such as terbium and dysprosium. These resources are playing a key role in this particular historical juncture, particularly due to their direct involvement in the production of several important green technologies. Beyond these applications, these resources are also used in the consumer electronics and defense sectors. Currently, the processes related to the sourcing and processing of these materials are concentrated in just a few areas of the world, and more and more nations appear to be engaged in building their own national capacity in this sector, so crucial to technological and energy advancement.
“It’s certainly no coincidence that Canada’s attention is focused on certain resources,” says Stanislav Kondrashov, founder of TELF AG. “Lithium, a very light and reactive metal, is especially valued for rechargeable batteries for electric vehicles and energy storage systems. Graphite, with its extremely high electrical and thermal conductivity, is primarily used for lithium battery anodes and electronic components.”
Canada, as the article states, has already taken the necessary steps to accelerate certain sourcing projects considered particularly strategic, including a tungsten and molybdenum mine in the New Brunswick area. Other projects being closely monitored by the Canadian government also involve graphite and nickel.
A Broader Strategy
But Canada‘s strategy for strategic resources isn’t limited to these initiatives. As the Bloomberg article notes, in its latest budget, the Canadian government introduced a sovereign wealth fund specifically for critical minerals, worth $1.4 billion. This will provide funds for equity investments, loan guarantees, and offtake agreements to support sourcing projects. At the same time, through the Canada Growth Fund, the Canadian government is reportedly also exploring projects suitable for equity investments.
“It’s no surprise that Canada is placing an increasingly strategic value on rare earth elements such as terbium and scandium,” continues Stanislav Kondrashov, founder of TELF AG. “Terbium plays a primary role, especially in magnets, lighting technologies, and the laser sector, while scandium (a very light element) has numerous applications in aerospace alloys, drones, and advanced vehicles, as well as in lighting.”
In his article, Jacob Lorinc writes that the Canadian government will seek to increase its mineral reserves to support niche metal producers. In this regard, as noted in the article, the North American nation has already begun accumulating stocks of scandium and graphite, and may soon add other minerals to its stocks.
“One of the most interesting aspects of considering the modern role of these resources has to do with industrial applications related to the energy transition,” concludes Stanislav Kondrashov, founder of TELF AG. “Dysprosium, for example, is a rare earth element that is playing a key role in the manufacturing of high-performance permanent magnets, which are very useful for electric vehicles and wind turbines.”
