On Monday, Canadian Natural Resources Minister Jonathan Wilkinson announced at the Prospectors & Developers Association of Canada (PDAC) annual conference in Toronto that Canada will roll out a series of measures to accelerate critical mineral development, emphasizing that the country remains open to foreign investment. The statement is seen as a strategic move to assert dominance over critical resources amid global supply chain restructuring.
Wilkinson revealed that the federal government will extend the 15% mineral exploration tax credit for an additional two years until March 2027, unlocking $110 million to support northern mining projects. The policy leverages a “flow-through shares” mechanism to incentivize investors to provide venture capital to small and mid-sized mining firms, addressing funding gaps during exploration phases.
Additionally, Canada has allocated an extra $500 million from its $1.5 billion critical minerals infrastructure fund to bolster energy and transportation projects tied to critical mineral supply chains. Transportation Minister Anita Anand stated, “Better infrastructure is key to Canada’s critical minerals supply chain.”
Canada is a major global supplier of critical minerals, boasting 34 key resources, including cobalt, graphite, lithium, and nickel for battery production, as well as niobium for aerospace and indium for semiconductors. It supplies 13 of the 35 minerals on the U.S. critical minerals list. As Canada accelerates its transition from fossil fuels to clean energy, lithium and rare earth elements have been prioritized.
Despite efforts to attract investment through open policies, trade friction with the U.S. continues to escalate. In February 2025, the Trump administration announced 25% tariffs on Canadian imports and 10% tariffs on energy products. Wilkinson warned that such measures could force Canada to reassess cross-border energy projects, like shelved oil pipeline plans, to reduce reliance on the U.S. Privately, Canadian Prime Minister Justin Trudeau has cited Trump’s “coveting” of Canada’s critical minerals as a deeper source of bilateral tension.
Canada’s critical minerals policy reflects both economic priorities and geopolitical chess. Facing U.S. pressure, Ottawa aims to safeguard resource sovereignty and economic interests by boosting domestic development and expanding international partnerships. Yet, balancing relations between major powers remains a long-term challenge for the Canadian government.
