Canada has announced the first slate of 25 projects under the G7 critical minerals partnership, marking a coordinated move to challenge China’s near-total dominance over global mineral supply chains.
The initiatives include offtake agreements for a graphite mine in Quebec and new investments in rare earth refining in Ontario — key steps toward securing Western control over materials vital to electric vehicles, batteries, and clean-tech manufacturing.
“These first initiatives are a clear signal that the G7 is serious about reducing concentration risks, safeguarding national security, and driving investment,” said Energy and Natural Resources Minister Tim Hodgson during the announcement on Friday.
“Every delay is a concession of economic and national security interests. We will no longer accept that,” Hodgson said.
Countering China’s grip on key minerals
According to the International Energy Agency, China controls roughly 70% of global refining for 19 of 20 key critical minerals — and 91% for rare earth elements used in EV motors, advanced radar systems, and clean energy technologies.
Although Beijing agreed to temporarily pause export controls on some rare earths as part of a deal with Washington this week, U.S. Energy Secretary Chris Wright said the moratorium underscores the need for self-reliance within the G7.
“China used non-market practices to squish the rest of the industry,” Wright said at the Toronto meetings. “Everybody sees that now.”
Key Canadian projects announced
Among the headline initiatives:
Nouveau Monde Graphite’s Matawinie Mine near Montreal received federal and private-sector offtake agreements from Panasonic and Traxys, securing future graphite supply for EV batteries.
Vianode, a Norwegian company, will build a synthetic graphite plant in St. Thomas, Ontario, supported by up to $500 million in potential financing from Export Development Canada. The company already holds a multibillion-dollar supply contract with General Motors.
Ucore Rare Metals, based in Kingston, Ontario, was conditionally approved for $36 million in federal funding to expand its refinery processing samarium and gadolinium, both used in nuclear and MRI technologies.
Graphite and rare earths are crucial to lithium-ion batteries and clean-energy infrastructure, sectors where demand is projected to surge sharply through 2040.
A report by the Canadian Climate Institute estimated the country will need $30 billion in new capital investments by that time just to meet domestic mineral demand.
Canada at the centre of G7 minerals strategy
University of Ottawa professor Wolfgang Alschner said the G7 meetings positioned Canada “at the centre of the minerals discussion,” but cautioned that the effort remains project-focused rather than policy-driven.
“Much policy work remains to be done,” Alschner said, citing the need for unified market standards and transparent governance frameworks.
The new alliance, he added, nonetheless signals a “defining shift” — with Canada emerging as a bridge between North American industry and global partners seeking to secure the raw materials for the world’s energy transition.
