By Ian M London PEng, MBA, Executive Director, Canadian Critical Minerals & Materials Alliance (C2M2A)
www.c2m2a.org
The Canadian Critical Minerals & Materials Alliance (C2M2A) advocates on behalf of emerging Canadian entities involved in critical material supply chains – prospective producers, processors, laboratories, universities, and materials application experts. Our overall goal is for Canada to more fully capture the economic returns from its critical mineral, human, and industrial resources and trading relationships. C2M2A and its alliance members are actively engaged with a range of national and international industry and government initiatives, including the likes of the Rare Earth Industry Association (REIA), the International Standards Organization (ISO), the Canadian Chamber of Commerce (CCC), Accelerate, Battery Materials Association of Canada (BMAC), Canada Cleantech Association (CCTA), and others.
Minerals themselves do not capture solid value until they are transformed into higher-value materials. While major commodity metals (e.g., copper, aluminum, nickel, gold) ‘supply-push’ strategies have traditionally served Canada well, non-commoditized critical materials (e.g., REEs, gallium, lithium, graphite) that power energy-transition economies, electrified mobility, robotics, advanced communications, AI & digital enabling platforms, medical applications, and other next generation technologies are specialized, highly engineered, and privately transacted. These latter materials are purchased by specific customer ‘demand-pull’ agreements with stringent technical specifications.
Rare earth permanent magnets are essential for electric motors, while gallium and helium are critical to semiconductor technologies that power energy control systems, e-mobility, aerospace, and defense applications. These sectors also stand to benefit significantly from lightweight aluminum-scandium and aluminum-manganese alloys. What many may not realize is that Canada, thanks to its thriving aluminum industry and abundant low-cost energy, has emerged as a global leader in aluminum production—despite not having a single aluminum mine. This underscores the transformative potential of investing in and developing robust midstream processing capabilities.
The energy transition goes far beyond solar panels and wind turbines. It encompasses power generation, grid-scale distribution, and the advanced electronics and smart systems that manage—and ultimately consume—electricity. Each stage presents valuable economic opportunities. To seize them, we need resilient, reliable supplies of critical materials—both for manufacturing the end-use technologies, and for producing the equipment, machinery, and infrastructure that make the transition possible.
Canada has many of the critical material-containing resources needed by its global partners. The first question generally asked is “where does Canada mine these raw materials?”, a rather narrow perspective as raw materials play only a small part of the value to be captured. Canada must resist framing critical minerals opportunities as a ‘mining story’. A key imperative in advancing a purposeful Canadian re-industrialization strategy lies in the midstream—the critical stage where minerals are refined and transformed into alloys, powders, chemicals, and components. This segment holds substantial economic opportunity, both within Canada and in partnership with our international trading allies. Any industrial strategy must be aligned with demand and include priorities. What with the broad suite of critical materials and applications, attention should be placed on the ‘lower hanging fruit’ for Canada so we can leapfrog competitors, and resist what trading partners do much better than us.
A well-thought-out longer-term re-industrialization strategy, as framed by several calls for action such as Restart, Recover & Reimagine – Prosperity for All Canadians (Industry Strategy Council, 2021), offer focus and would allow Canada to leverage our well-developed mining and manufacturing sectors. It would also deliver on social and environmental performance – a globally competitive advantage.
As illustrated in the aluminum example cited earlier, Canada does not have to wait for new mines to be opened. Midstream capability and capacity can be built in parallel to mine development, by kick-starting process development with imported and recycled feed stocks. The latter also supports the building of the circular economy in Canada and the jobs that go with it. Building the midstream… and mining will rise!
For decades, Canada has slowly, and perhaps blindly, offshored our industrial base. This has meant the erosion of manufacturing capacity, the hollowing out of value chains, and the belief that pulling rocks out of the ground is an economic strategy. The world is now deep into a global energy and technological transition – an opportunity for Canada’s reindustrialization that must not be missed. Reindustrialization is not about nostalgia, but about strategic security and economic leadership. Coordinated national and provincial strategies are needed that prioritize the building of midstream processing and downstream manufacturing, developing tomorrow’s needed talent pools, and supporting small- and medium-sized enterprises (SMEs represent over half of the jobs in Canada).
Canada must tie public investment to our national interest outcomes. Any federal or provincial support to domestic or foreign companies must come with clear commitments: build midstream processing capacity here, seed natural spinoff industries, and use Canadian materials in the supply chain. Canada mustn’t squander this multi-generational opportunity by treating critical minerals as just another commodity boom. The true opportunity lies in what we make and the value we add. If we commit to a bold, coherent reindustrialization strategy now, we can position Canada as a global leader that produces the materials which will define 21st century economies.
C2M2A, with its members and international partner initiatives, clearly focuses and champions innovation, investment, and the human resource development on adding value to Canada’s critical material supply chain, and industrial future and success. It’s time to build value.
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