Introduction
Critical minerals are becoming central to Canada and U.S. security and clean energy strategies. Both countries are investing heavily in mining, processing, and supply chain integration in order to support defence, technology, and the transition toward clean energy. By 2040, global demand for critical minerals is expected to double. Technologies such as batteries, wind turbines, and solar panels require critical minerals such as nickel, copper, lithium, and cobalt. These rare earth elements are essential for electric vehicles, renewable energy storage, and advanced defence systems.
Canada and Critical Minerals
Canada released its critical mineral strategy in 2022 and currently is accelerating investments in mining and processing facilities. The federal government is framing it as a “nation-building opportunity”, linking the minerals to clean growth, energy security, and global competitiveness. Canada is a leading supplier of 23 minerals to the U.S., including 22 designated as critical, underscoring its role in North American defence and industrial resilience. With current sovereignty concerns, many Canadians want domestic investment in critical resources to avoid reliance on foreign capital.
United States and Critical Minerals
The U.S. also views critical minerals as strategic assets for national security, particularly in defence manufacturing and advanced technologies. Its integrated supply chains with Canada are vital: the U.S depends on Canadian production for many critical minerals, reinforcing cross-border cooperation. America’s current policy emphasis is on reducing reliance on China, which currently dominates global processing capacity.
Canada – U.S. Cooperation
The two countries are deepening collaboration through bilateral agreements and defence policies to secure supply chains. The USMCA renegotiations highlight critical minerals as a key area of economic and strategic alignment. Shared goals include expanding mining and processing capacity, protecting integrated markets, and coordinating workplace development to meet industry needs.
Outlook: 2025 – 2030
By 2030, both Canada and the U.S. aim to be global leaders in responsibly sourced critical minerals. The sector will underpin energy transition (EVs, renewables, storage), defence and aerospace industries, and economic sovereignty in North America. Challenges will remain however, such as balancing environmental responsibility, indigenous rights, and foreign investment pressures. To fully develop its investment in critical minerals, cooperation between the two nations is vital.
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