The energy transition in many countries is contributing to an increase in demand for many minerals. Many advanced technologies used to produce electricity without greenhouse gas emissions and to electrify transportation require many types of minerals. For example, the average electric vehicle can require six times the amount of minerals a conventional car does. In March 2021, the Government of Canada released a list of 31 critical minerals available in Canada, including cobalt, copper, rare earth elements and lithium, some of which are already being mined in Canada. These minerals are essential not only for the energy transition, but also for many industries such as agriculture and aerospace. It is in this context that in January 2022, the House of Commons Standing Committee on Industry and Technology launched a study on the supply and processing of critical minerals in Canada.

Canada has most of the critical minerals that will be in high demand in the years to come and could become a global leader in supplying critical minerals and developing advanced technologies value chains, such as for batteries. Canada has many advantages in this sector: in addition to having reserves of most critical minerals, it has a skilled labour force, low-cost access to inputs such as water and land, a stable and predictable geopolitical situation, and a strong environmental framework. However, Canada faces a number of challenges such as the purchase of Canadian mineral deposits by foreign companies and a lack of critical minerals exploration.

In order for Canada to seize this opportunity and become a world leader in critical minerals, the Committee recommends that the Government of Canada develop a comprehensive Canadian critical minerals strategy, including mineral extraction, intermediate processing and recycling, that leverages the strengths of each region in Canada and supports the rapidly evolving Canadian automotive sector. It also recommends that the government provide incentives to ensure that the development of a new mine also establishes a value-added industry in the region where it is located and introduces initiatives to encourage Indigenous peoples to fully participate in the mining sector.