Canada's Resource Advantage Is Only the Beginning

As Canada heads into a consequential fall, questions around trade, economic security and our relationship with the United States are taking on new urgency. Critical minerals offer an important window into what comes next. Even as Canada navigates one of the most difficult periods in its trading relationship with the U.S. in decades, the U.S. government continues to invest directly in Canadian critical mineral projects.

Washington views access to critical minerals not simply as a trade issue, but as a national and economic security requirement.

Under the U.S. Defence Production Act, Canada is considered a domestic source, allowing the Pentagon to invest directly in Canadian projects. Recent investments include US$8.3 million for graphite in Quebec, US$6.4 million for cobalt and bismuth in the Northwest Territories, and US$15.8 million for tungsten in Yukon.

These are relatively modest amounts compared with the billions required to build mines. But the direction of policy matters. Washington is increasingly willing to act as investor, lender and customer when a resource is strategically important.

And the market alone may not solve the problem.

The IEA reports that global critical mineral investment fell 9% in 2025, while investment in battery metals declined by more than 20%. At the same time, new refining projects outside dominant producing countries can face capital costs 20% to more than 150% higher, with operating costs averaging roughly 50% higher.

The United States has established Project Vault, a strategic critical minerals reserve backed by up to US$10 billion in financing from the U.S. Export-Import Bank.

Stockpiling can protect against supply disruptions, while government purchasing can create demand. Offtake can provide revenue certainty. Loans and equity can reduce financing risk. Together, those tools can change the economics of whether a strategically important project gets built.

Canada is moving in this direction too.

Ottawa has established a $2 billion Critical Minerals Accelerator capable of making equity, debt and offtake investments, alongside up to $1.5 billion through the First and Last Mile Fund. Canada is also developing its own critical mineral stockpile.

The question heading into the fall is one of speed, scale and strategy.

Washington is investing in Canadian minerals because securing those resources advances American economic and national security interests. Canada should be equally clear about our own.

Which minerals are essential to our defence and industrial requirements? Which Canadian projects are strategically important enough to warrant intervention? What should we stockpile? Where do we need domestic processing? And where should we partner with allies?

Possessing critical minerals is not the same as controlling a critical mineral supply chain.

Canada has an extraordinary resource advantage. The challenge now is turning that advantage into projects, supply chains and long-term economic strength.

We need to be just as strategic about Canadian resources as the countries that want them.