Canada possesses some of the world's most significant mineral deposits, including cobalt, lithium, copper, rare earths, graphite, and nickel. These materials are essential for electric vehicle batteries, wind turbines, and solar panels. The potential revenue from developing these six key minerals is estimated at $500 billion.
However, the country now faces a complex economic landscape. In March 2025, the U.S. imposed 25% tariffs on most Canadian imports and 10% on energy products, citing trade imbalances and border security concerns.
Canada faces both a huge opportunity and tricky challenges. The country needs foreign money to develop these resources, but it must also protect its strategic interests.
Canada can use international money through partnerships with different countries, but it needs careful foreign investment rules, good relationships with Indigenous peoples, and smart international cooperation to make the most of its mineral wealth.
Prime Minister Mark Carney reaffirmed Canada’s commitment to defending its economic interests on the global stage. In line with this position, Canada is prepared to adjust its counter-tariffs on U.S. steel and aluminium, potentially increasing them, if a deal is not reached within 30 days. This move directly responds to the latest escalation by the U.S. administration.
How Much Mineral Wealth Canada Has
Canada’s mineral potential is undeniable. Known deposits of priority minerals exceed $300 billion, and over 100 active projects across the country are worth more than $107 billion. These projects could unlock $80 billion in capital investment, contribute $63 billion to GDP during construction, and add $460 billion across the mining lifecycle.
Canada already ranks:
- 3rd globally in lithium reserves
- Top 10 for cobalt, graphite, nickel, and rare earths
- 13th for copper reserves
This geological endowment positions Canada to support clean energy ambitions worldwide. The International Energy Agency reports that electric vehicles require six times more minerals than conventional vehicles. As countries accelerate their net-zero transitions, Canada’s minerals are gaining geopolitical weight.
Shifting Foreign Investment Strategies
Foreign investment remains vital, accounting for up to 45% of Canadian mining capital, but the policy landscape is shifting. The new federal government has signalled a stricter posture, especially toward state-influenced capital from adversarial nations. In 2022, Canada forced the divestment of three Chinese-owned mining interests. Since then, foreign ownership in critical mineral firms is being evaluated under heightened national security protocols.
Canada is now focused on diversifying capital sources. While it remains open to strategic investment, it is increasingly prioritising partners that align with domestic values, security priorities, and Indigenous rights frameworks. This includes outreach to Middle Eastern sovereign wealth funds, Canadian pension plans, and capital from Indo-Pacific and European allies.
Recent policy shifts reflect this protective stance. Under revised rules, foreign investments in companies involved with critical minerals are subject to review and will only be approved in “the most exceptional circumstances.” This protects Canada’s autonomy while enabling carefully selected partnerships where national and Indigenous interests are safeguarded.
Indigenous Partnership: Essential for Success
Geography means that Indigenous partnership isn't optional, it's essential for Canada's critical minerals development. Most critical mineral deposits sit on or near Indigenous territories, making meaningful collaboration fundamental to any successful development strategy. This reality has driven an evolution from traditional consultation models to genuine partnership frameworks that recognise Indigenous communities as self-governing equals in resource development.
The change moves beyond conventional Impact and Benefit Agreements towards a new model emphasising equity stakes and ongoing collaboration. The 250 MW Oneida Energy Storage project in Ontario shows this approach, developed by Six Nations of the Grand River Development Corporation through a 50:50 partnership structure. This success story demonstrates how fair partnerships can deliver both commercial success and community benefit.
Three pillars define the emerging partnership model. First, respecting Indigenous communities as self-governing equals rather than stakeholders to consult. Second, implementing early, broad, and ongoing consultation processes that engage communities from project conception through operation and closure. Third, ensuring meaningful equity participation in projects, moving beyond employment and contracting opportunities to actual ownership stakes and profit-sharing arrangements.
Government support mechanisms are evolving to help these partnerships. The 2024 Federal Budget included a $5 billion Indigenous loan guarantee fund designed to help Indigenous communities participate as equity partners in major resource projects. Provincial programmes such as the Alberta Indigenous Opportunities Corporation, with its $3 billion in available capital, provide additional support structures. The development of a National Benefits Sharing Framework represents another step towards institutionalising fair partnerships.
However, significant challenges remain. Building capacity for technical expertise and negotiations requires sustained investment and time. Streamlining consultation processes whilst maintaining meaningful engagement creates ongoing tensions between efficiency and thoroughness. Balancing typical 4-6 year approval timelines with comprehensive Indigenous consultation requires careful project management and realistic expectations from all parties.
The economic case for Indigenous partnership extends beyond moral reasons to practical necessity. Projects developed with genuine Indigenous partnership typically face fewer delays, less opposition, and better social licence to operate. Projects that fail to secure Indigenous support often face costly delays, legal challenges, and reputation damage that can deter international investment.
Canada's Competitive Investment Advantages
Despite tighter controls, Canada remains a top-tier investment destination:
- Lowest net debt-to-GDP ratio in the G7 (13.1%)
- Forecasted 2.0% GDP growth through 2026
- Predictable inflation within the 1–3% target range
- Competitive 26.1% corporate tax and 13.0% tax rate on new investments
Beyond numbers, Canada’s transparency, rule of law, and market access matter. Fifteen free trade agreements connect investors to 51 global markets, allowing Canada to export both raw materials and value-added mineral products.
Additionally, Canada’s 70% clean energy generation positions it as a unique provider of low-emission minerals, essential for investors and buyers pursuing environmental, social, and governance (ESG) objectives.
The Way Forward
Canada’s critical minerals opportunity cannot be measured solely in dollars. It is a platform to rethink how the country governs its natural wealth, with Indigenous Nations as full partners, and with international capital serving domestic priorities.
The priorities are clear:
- Empower Indigenous governments to lead in planning, development, and ownership
- Expand technical and financial capacity in Indigenous communities
- Limit foreign dependency while welcoming values-aligned investment
- Streamline regulatory systems without compromising social and environmental integrity
Canada now has the chance to chart a uniquely sovereign and inclusive path. The $500 billion opportunity is not just economic; it is a pathway to reshape global supply chains, advance reconciliation, and assert Canada's leadership in the clean energy future.
