At the 2025 International Economic Forum of the Americas (IEFA) in Montreal, economists and market analysts highlighted that the security of critical metals supply chains has become a central issue for the global economy, driven by escalating geopolitical tensions and the accelerating green energy transition. As a resource-rich developed nation, Canada—with its vast geological endowments and mature industrial ecosystem—is emerging as a prime destination for investors looking to capitalize on the critical metals sector.
Paul Gruenwald, Global Chief Economist at S&P Global, noted that the explosive growth of artificial intelligence (AI) and the shift toward green energy are creating a “dual-driver” effect: skyrocketing energy demand for data centers, coupled with rising reliance on lithium, copper, nickel, and rare earth elements for clean energy technologies. “Despite short-term volatility from U.S. tariffs on China, the long-term demand trajectory for critical metals is irreversible,” he emphasized.
Data shows that China currently controls 60% to 90% of the global refining capacity for critical metals. Ulric Adom, CFO of Aluminum at Rio Tinto, acknowledged, “By the time the Western world recognized the supply chain risks, China already had a decade-long head start. Rebuilding this infrastructure requires massive energy inputs and time—it’s not just an economic challenge but a strategic imperative.”
Perry Ing, CFO of McEwen Mining, pointed out that Canada possesses a rare combination of strengths: “We host 25 of the 40 critical minerals prioritized by the U.S. and Europe (62.5% of the list), along with a full-spectrum talent pool from exploration to processing.”
Maïté Blanchette Vézina, Quebec’s Minister of Natural Resources, further revealed that the province has achieved scaled production of scandium oxide, niobium, and graphite, with lithium, copper, and nickel capacity also expanding rapidly.
Notably, Canada’s stable political environment and its integration into the North American free trade framework make it a geopolitical “safe harbor.” Despite trade tensions with the U.S., Vézina stressed, “The deep integration of North American supply chains remains unchanged, and Quebec will continue to strengthen mutually beneficial cooperation with the U.S.”
Industry leaders agreed that developing this sector requires moving beyond traditional market dynamics. Grégoire Baillargeon, Vice Chair of BMO Capital Markets, stated, “Relying solely on free-market pricing will struggle to compete with China’s dominance. Governments must implement measures like long-term procurement agreements and price support mechanisms to nurture domestic industries.”
For potential investors, key strategies include:
Resource Developers: Focus on lithium and electric minerals projects in Canada, such as Magna Terra Minerals Inc.’s (MTT. TSXV) Humber copper-cobalt project.
Technology Innovators: Monitor firms pioneering low-energy refining technologies, such as electrolysis-based processing.
Diversified Exposure: Consider TSX-listed mining ETFs to mitigate single-commodity volatility.
As global decarbonization efforts intensify, critical metals are becoming increasingly strategic. In the ongoing supply chain reshuffling away from China, Canada—with its resource wealth and institutional resilience—is positioning itself as a pivotal player in the new energy revolution. Investors must navigate the interplay of policy incentives and market forces to capitalize on this long-term opportunity.
