Canada’s critical minerals diplomacy is moving fast—more industrial capacity is needed

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Since hosting the G7 in Kananaskis last June, the federal government has signed bilateral critical minerals agreements with 21 global partners—an extraordinary pace of diplomatic deal-making. Ailsa Popilian and Marla Orenstein recently argued in The Hub that this momentum is real but insufficient: “MoUs don’t make mines. Partnerships don’t build processing facilities.” The observation lands harder with each passing quarter. Canada’s challenge is no longer getting to the table. The interesting question is whether anything being built at home can justify the seat.

The diplomatic achievements deserve recognition on their own terms. The G7 Critical Minerals Production Alliance, launched under Canada’s presidency, has become a multilateral vehicle channelling capital toward Canadian projects. Prime Minister Carney’s “buyers clubs” pitch at Davos is translating into concrete offtake agreements—Germany’s TKMS linking into naval defence supply chains through E3 Lithium, Japan’s Panasonic Energy signing with Frontier Lithium for North American EV battery inputs, Italy’s Leonardo securing critical mineral cooperation for advanced manufacturing. Last month’s Prospectors and Developers Association Conference in Toronto produced 30 new partnerships unlocking $12.1 billion in mining project capital. By any diplomatic measure, the world wants what Canada has.

But consider what Washington is doing simultaneously. The United States launched FORGE, the Forum on Resource Geostrategic Engagement, attracting 54 nations and signing 11 bilateral agreements in a single day. President Trump’s Project Vault announcement committed $12 billion to a U.S.-based strategic critical minerals reserve, mirroring the logic of strategic petroleum reserves for a new era of resource competition. Canada and the United States are courting the same global partners for the same materials, even as the bilateral relationship navigates significant friction.

Source: Wikipedia