Canada has unveiled new details on the nation’s critical minerals strategy, with the government unlocking $1.5 Billion Canadian dollars through the Strategic Innovation Fund (SIF).

Innovation, Science and Industry Minister François-Philippe Champagn outlined his vision for the SIF this week.

The government of Canada told mining companies and the industry at large that in order for firms to qualify for projects, they must focus on critical minerals processing, manufacturing and recycling.

Some mining projects will also see funding, however, they must demonstrate significant integration into Canadian supply chains.

Canada has listed 31 minerals as “critical” in a strategic document released in 2022.

Minerals on the list include lithium, graphite, nickel, cobalt, copper, tin, tungsten, vanadium, magnesium, zinc and rare earth minerals (listed here). 

 Investments made to date through the Strategic Innovation Fund include a $27 million contribution to E3 Lithium Ltd. in Calgary, Alberta, for the direct extraction of lithium from brines and a $222 million investment to support Rio Tinto Fer et Titane in Sorel-Tracy, Quebec, in producing an array of critical minerals like titanium and scandium and decarbonizing operations through innovative smelting technology.

“Canada has everything it takes to be a leading force in critical minerals processing, manufacturing and recycling. We already have a growing assortment of key innovative projects that are being developed right here in Canada that will allow us to build a stronger domestic critical minerals ecosystem. And through strategic investments, our government is ensuring that Canada can be a leader in this growing global industry, which will create well-paying jobs across the country, especially in rural, remote and Indigenous communities,” François-Philippe Champagne, Minister of Innovation, Science and Industry told media.

Canada’s critical minerals strategy will advance our efforts to make Canada a global leader in the responsible, inclusive and sustainable production of critical minerals, from mines to manufacturing.

The 2023 Canadian budget includes $500 million over 10 years for the Strategic Innovation Fund (SIF) to support the development and application of clean technologies. SIF will also direct up to $1.5 billion of its existing resources toward projects in clean technologies, critical minerals and industrial transformation.

The Canadian federal government is providing financial and administrative support to accelerate the development of strategic projects in critical mineral mining, processing, manufacturing, and waste reduction (e.g., through recycling and mining value from waste). 

This support includes strategic investments to unlock potential in critical-mineral-rich regions, leveraging the resources and expertise of federal trade and business development organizations such as the Business Development Bank of Canada, Export Development Canada, and the Canadian Commercial Corporation. 

It also means capitalizing on existing programs such as the Strategic Innovation Fund (SIF), which is already making significant investments in the electric vehicle battery industries.