19 hours ago
- Business
- National Observer
EU demand for critical minerals could jump start Canada's sluggish market, Joly claims
Slow-rolling progress in developing Canada's vast reserves of critical minerals could be geared up by demand from Europe for use in advanced military technologies, based on industrial priorities outlined today by the two governments.
Critical minerals, a large group of materials including lithium, cobalt and zinc key to energy transition technologies such as solar panels and EV batteries, are also widely used in defense applications, with tungsten in the casing of armour-piercing bullets and so-called rare earth elements found in weapons' guidance systems.
Canadian Minister for Industry Mélanie Joly, in a press briefing launching the agreement, said the New Canada-EU Industry Policy Dialogue is designed to 'deepen cooperation across a number of critical sectors,' led by defence, energy and critical minerals, and including quantum computing, and green steel and aluminum.
Through transatlantic industrial collaboration, Canada could be 'better aligned' in all sectors, with critical minerals able to meet significant demand from 'defence industries, including aerospace and marine,' she said.
'We are seeing there is lots of interest from many countries, particularly in the EU, that are looking to invest in Canada's [critical mineral sector],' said Joly in response to a question from Canada's National Observer.
Joly said the lead-off industrial deal with the EU would include focus on 'creating a stable energy and critical mineral supply chain networks, to protect our economic security, and so, jobs.
'For years we have been looking for the capital to develop the potential of these great mines. It is finally happening. These critical minerals will underpin our economic security.'
'For years we have been looking for the capital to develop the potential of these great mines. It is finally happening. These critical minerals will underpin our economic security," says Canadian minister of industry Mélanie Joly
Despite the great promise of Canada's wealth of critical minerals — the government has shortlisted 34 — the resource remains largely untapped — and without a supply chain to handle processing and recycling.
In 2022, as part of an early industrial development strategy, Ottawa announced $3.8 billion in federal funding to finance associated geoscience and exploration, mineral processing, manufacturing and recycling applications, as well as research and development.
'Importance of strategic partnerships'
But only a handful of critical minerals mining projects have gained traction since then, with embryonic developments in British Columbia, Manitoba, Ontario and Quebec in the past year receiving a further financial boost from the $1.5 billion Canadian Critical Minerals Infrastructure Fund.
European Commission executive vice-president of prosperity and industrial strategy Stéphane Séjourné, who made the joint announcement with Minister Joly, said the dialogue "recognized the importance of strategic partnerships" for critical minerals in times of geopolitical uncertainty.
Séjourné said foremost on the European mind were 'security and accelerating the [energy] transition and industrial decarbonization' and critical minerals were necessary to these ambitions.
'Economic stability and market visibility [is what we want] for our businesses and industries. Protectionist practices by some only reinforce our belief in diversification. Critical minerals is part of a trade bridge we are building with conviction," he said.
Friday's announcement comes on the heels of the New EU-Canada Strategic Partnership of the Future. Signed last month as a negotiating platform for wide-ranging discussions around trade and economic security, digital transition, and climate change and environmental degradation, the agreement included Canada's participation in Security Action for Europe , an instrument of the European rearmament initiative, Readiness 2030.
At the G7 summit, hosted by Canada in Kananaskis, Alta. in June, the member nations and the EU launched a high-level 'action plan' to head off what is perceived as the global 'economic threat' posed by China's stranglehold on critical minerals markets via a three-pillar plan: internationally-agreed standards of operation, mobilizing sustainable finance, and fast-tracking the development of missing links in critical mineral supply chains.
