A strategy adjustment to engage the entire supply chain
Kingston Process Metallurgy (KPM) focuses on integrated process development, specializing in both new processes and improving existing ones. At KPM, we aim to provide clarity to potential mining, metallurgy, or processing projects and guiding them from concept, through development and scale up, and to finally execution. This includes performing capital and operating cost estimates, conducting technical reviews, and identifying key process drivers and issues, which help direct lab and pilot work. Our experience and expertise have positioned KPM directly in the path to the development of the critical materials supply chain.
In our experience working within the critical materials space, KPM has observed that the updated Canadian Critical Minerals list, while comprehensive, still focuses heavily on the mining aspect of the supply chain. This is exemplified in the use of the word “Minerals”, when only two of the 31 items in the list are minerals (fluorspar for fluorine and potash for potassium). The rest are elements, and the use of the word “Minerals” reinforces government mindset rooted in mining. However, critical material supply chains must go far beyond mining, and the materials (or elements) need to engage the entire supply chain to end product. These materials are fundamental to Canada’s re-industrialization, economic security, and sustainability.
Strategies and plans should focus on mid-term opportunities by recognizing the importance of established “demand-pull” from the midstream to encourage upstream supply via mine development or recycling. In contrast, a “supply-push” approach that develops raw materials without domestic mid- and downstream capabilities, will primarily benefit non-Canadian entities engaged in value-added processing. Critical materials strategies must distinguish between commoditized materials (e.g., Cu, Ni, Al) and non-commoditized materials (e.g., Nd, Dy, Ga, Ge), which involve different players and markets.
Additionally, when developing a new supply chain, strategies need to account for key substances required in the processing of energy transition materials, such as sulphuric acid (H₂SO₄) for the extraction of rare earth elements, and helium for semiconductor manufacturing. These substances may not be present in the final products but are essential to the production process. Addressing potential shortfalls in these processing chemicals is crucial for a sustainable supply chain.
KPM also highlights the importance of anticipating future applications, especially next-generation energy storage and battery technologies, as these evolving demands may render today’s battery formats obsolete. The company stresses that Canada’s Critical Materials List should keep pace with these technological advancements and consider materials that will be needed in the future for these applications, including their forms, compositions, and volume demands.
In terms of criteria for identifying critical materials, Canadian companies often hold mineral rights outside of Canada and can contribute to critical materials production through midstream processing, even when the raw minerals are sourced from abroad. Additionally, Canada’s growing recycling capabilities will increasingly rely on imported feedstocks, not necessarily minerals produced domestically. KPM sees recycling as a key opportunity for closing supply chain gaps by reducing reliance (at least at the outset) on mining for critical materials.
KPM’s focus on critical materials goes beyond mining to emphasize the importance of processing and downstream capabilities. We are actively involved in innovative recycling projects and aims to find sustainable ways to kickstart and stabilize supply chains, whether through traditional mining or recycling initiatives. KPM’s role is to provide the expertise and guidance necessary to navigate these challenges and contribute to the successful development of critical material supply chains, which are foundational to the green transition, economic security, and future technological advancements.
