Canada’s Race for Leadership in the Global Critical Minerals Industry

Canada is building more than just mines. We’re developing a full-scale critical minerals processing industry to supply the clean energy revolution. From cutting-edge lithium recycling to ultra-low-emission nickel production, we’re leaning into innovation to become a global leader.

For more technical detail, explore the full in-depth article Canada’s Critical Minerals Strategy: Building a Green Supply Chain for the Energy Transition by Denis Koshelev.

Private Investment Pouring In

The federal government provides billions in funding, and private companies are playing a major role, too. Big names and smaller innovators are developing facilities to process:

• Lithium

• Nickel

• Cobalt

• Rare earth elements

• Graphite

  
  

Some standout examples:

• Mangrove Lithium in B.C. is building a facility to produce battery-grade lithium for 25,000 EVs per year.

• Electra Battery Materials is developing North America’s first cobalt sulfate refinery.

• Northern Graphite is turning local graphite into battery-grade anode material.

• Vital Metals is focused on rare earths in the Northwest Territories.

  
  

International partnerships are also shaping the landscape, with companies like Mitsubishi and Asahi Kasei investing in Canadian projects.

Processing Innovations to Watch

Canada values green tech and recycling in mineral processing. Here are some promising technologies:

• Electrochemical Lithium Refining: A cleaner, cost-effective way to produce lithium hydroxide (used in EV batteries).

• Graphite from Natural Gas: New methods turn methane into graphite and hydrogen with minimal emissions.

• Nickel from Awaruite: A low-sulfur nickel ore that skips the energy-heavy smelting process.

• Battery Recycling: Companies like Cyclic Materials are recovering rare earth elements from electronic waste.

  
  

These innovations help reduce environmental impact while making Canada’s supply chain more circular and sustainable.

Challenges Ahead

Despite this progress, there are hurdles to overcome:

• Environmental Impact: Mining in remote areas risks damaging carbon-rich peatlands and polluting rivers.

• Community Opposition: Some Indigenous and local communities are concerned about the long-term ecological effects of mining.

• Slow Approvals: It can take 10 to 15 years to permit a new mine, which is too slow to meet current demand.

• Unpredictable Regulations: Frequent policy changes create uncertainty for investors and companies.

  
  

Finding the Right Balance

For Canada to be a responsible leader in the global race for clean energy minerals, we must:

• Expand production without sacrificing environmental protections

• Honour Indigenous rights and build strong partnerships

• Create jobs while lowering carbon emissions

• Streamline approvals without cutting corners

  
  

Final Thought on Canada's Critical Minerals

Canada is rapidly advancing the critical minerals processing industry to support a growing demand for clean energy technologies. Private and public investments are driving lithium, nickel, cobalt, graphite, and rare earth element projects across the country. Innovative, low-emission processing methods and recycling technologies position Canada as a leader in sustainable mineral production. At the same time, key challenges, including environmental risks, regulatory delays, and community concerns, are also present. 

Canada’s future as a green energy powerhouse depends on balancing rapid growth with responsible practices. We have the resources to lead in critical minerals, but need to act fast, stay transparent, and keep our standards high.