Canada is unlocking new routes to critical minerals financing
Canada is actively encouraging mining projects, with a suite of programs and financial incentives already in place
Scroll to view more
Unlocking capital and clearing a path for critical minerals projects
Canada is meeting the moment for investment and business growth in critical minerals.
Long-term returns are achievable through an approach that addresses risk with robust government support and legislative structures. The government has also streamlined processes, fostering cooperation across the value chain.
Building on its long history of responsible mining and existing infrastructure, Canada provides a solid base for rapid expansion and new project integration. The nation is home to 60 minerals and metals and almost 200 mines and attracting international investment into the industry is a national priority.
Read more
See less
The Government of Canada’s November 2025 budget lays out $2 billion for a new Critical Minerals Sovereign Fund to strategically invest in critical minerals projects through flexible tools like direct equity investments, loan guarantees, and offtake agreements, providing capital and revenue certainty to de-risk projects. This is complemented by a First and Last Mile Fund, which provides $371.8 million to accelerate upstream and midstream development.
These measures are indicative of Canada’s focus on overcoming liquidity gaps and delivering support across the critical minerals value chain.
$6.4 billion
planned investment across 26 projects and partnerships with nine allied countries under the G7’s Critical Minerals Production Alliance
Source: Government of Canada
10%
average annual growth rate in global critical minerals trade over the past two decades
Source: World Trade Organization
Tax incentives to support long-term investment
Recognizing that risk is a key determinant for mineral investment, Canada offers highly competitive and targeted incentives designed to enhance project viability:
63%
increase in Canada's nominal GDP attributable to critical mineral production between 2019 and 2023
Source: Statistics Canada
Mineral Exploration Tax Credit (METC)
A 15% non-refundable tax credit, extended until March 31, 2027. It directly supports junior companies and early-stage exploration.
Expanded Critical Mineral Exploration Tax Credit (CMETC)
A new, enhanced 30% tax credit, updated in the 2025 Budget for the exploration of 27 specific critical minerals.
Flow-Through Shares (FTSs)
These allow foreign investors to transfer eligible exploration and development expenses, accelerating capital formation.
Deduction of provincial/territorial mining taxes and royalties
Full deductibility from corporate income tax, improving project economics.
Canadian Exploration Expense (CEEs) and Canadian Development Expense (CDEs) claims
Separate federal income tax deductions for mining exploration and development, providing immediate financial benefits.
Productivity Super-Deduction (Accelerated Capital Cost Allowance)
As part of Budget 2025, businesses can continue to claim a 100% write-off for machinery and equipment used in manufacturing, processing, and clean energy, boosting cash flow for new investments.
Tax incentives to support long-term investment
Recognizing that risk is a key determinant for mineral investment, Canada offers highly competitive and targeted incentives designed to enhance project viability:
Mineral Exploration Tax Credit (METC)
A 15% non-refundable tax credit, extended until March 31, 2027. It directly supports junior companies and early-stage exploration.
Expanded Critical Mineral Exploration Tax Credit (CMETC)
A new, enhanced 30% tax credit, updated in the 2025 Budget for the exploration of 19 specific critical minerals.
Flow-Through Shares (FTSs)
These allow foreign investors to transfer eligible exploration and development expenses, accelerating capital formation.
Deduction of provincial/territorial mining taxes and royalties
Full deductibility from corporate income tax, improving project economics.
Canadian Exploration Expense (CEEs) and Canadian Development Expense (CDEs) claims
Separate federal income tax deductions for mining exploration and development, providing immediate financial benefits.
Productivity Super-Deduction (Accelerated Capital Cost Allowance)
As part of Budget 2025, businesses can continue to claim a 100% write-off for machinery and equipment used in manufacturing, processing, and clean energy, boosting cash flow for new investments.
63%
increase in Canada's nominal GDP attributable to critical mineral production between 2019 and 2023
Source: Statistics Canada
Accelerating regulatory processes through ‘one-project, one-review’
The Government of Canada’s recent One Canadian Economy Act provides regulatory certainty and accelerates major projects of national importance through the connected Building Canada Act.
The one-window approval process slashes federal review timelines to two years, ensuring rapid project progression through a streamlined ‘one-project, one-review’ basis.
Read more
See less
Canada’s new Major Projects Office serves as a single point of contact with the goal of launching nation-building projects faster.
Five projects on the priority list are in the critical minerals space, including the McIlvenna Bay Project in Saskatchewan and the expansion of Red Chris Mine in British Columbia.
Mining-related infrastructure, such as roads, energy corridors, and processing facilities, can also qualify, directly speeding up development.
Click to view
Unlocking $6.4 billion though investment and partnerships through the G7
Diversifying and securing global critical minerals production and supply has been a focus of the Canada-led G7’s Critical Minerals Production Alliance. In October 2025, the country’s Minister of Energy and Natural Resource unveiled the Alliance’s plans for 26 new investments, partnerships and measures with nine allied countries. This is scoped to unlock $6.4 billion of critical minerals projects, including:
Nouveau Monde Graphite’s Matawinie Mine
near Montreal, Quebec
Aiming to diversify global graphite supply chains and strengthen Canada's role as a critical minerals supplier.
Nouveau Monde Graphite’s Matawinie Mine
near Montreal, Quebec
Aiming to diversify global graphite supply chains and strengthen Canada's role as a critical minerals supplier.
Over $35 million invested from the Canada Growth Fund and a letter of interest from the Canada Infrastructure Bank.
A letter of interest for up to US$430 million from Export Development Canada.
Offtake arrangements are in place with the Government of Canada, Panasonic (Japan) and Traxys (Luxembourg).
Rio Tinto’s Scandium Production Plant
in Sorel-Tracy, Quebec
Expanding the facility to full-scale commercial production.
Rio Tinto’s Scandium Production Plant
in Sorel-Tracy, Quebec
Expanding the facility to full-scale commercial production.
The plant has secured an equity-like royalty investment of approximately $25 million from the Canada Growth Fund.
An offtake arrangement is in place with the Government of Canada.
Ucore Rare Metals Inc.’s facility
in Kingston, Ontario
Developing a first-of-its-kind commercial processing facility, refining the rare earth elements of samarium and gadolinium.
Ucore Rare Metals Inc.’s facility
in Kingston, Ontario
Developing a first-of-its-kind commercial processing facility, refining the rare earth elements of samarium and gadolinium.
A conditionally approved investment is agreed with the government of Canada of up to $36.3 million.
Vianode’s synthetic graphite facility
in St. Thomas, Ontario
Building a large-scale production facility for low-emission synthetic anode graphite.
Vianode’s synthetic graphite facility
in St. Thomas, Ontario
Building a large-scale production facility for low-emission synthetic anode graphite.
A letter of interest for up to US$500 million in potential financing from Export Development Canada.
Further letters of interest from the German government for potential support, with an export credit guarantee of up to US$300 million; and from the Canada Infrastructure Bank.
There is an existing offtake agreement with General Motors.
$3.8 billion
invested through Canada's Critical Minerals Strategy to secure responsibly sourced critical minerals, strengthening green economy value chains domestically and globally.
Source: Government of Canada
Prioritizing sustainability through ESG leadership and innovation
Canada’s commitment to strong ESG leadership and innovation not only helps to unlock capital, but it also ensures the long-term viability and responsible development of critical mineral resources for clean energy solutions.
The Government of Canada’s Clean Economy Investment Tax Credits (ITCs) are available to mining investors:
Expanded Clean Technology Manufacturing ITC
A 30% refundable tax credit for new machinery/equipment used to extract, process, or recycle critical minerals, or to manufacture clean technologies, including the capital costs of processing facilities for gallium, germanium, indium, scandium, and antimony.
Clean Hydrogen ITC
A 15-40% refundable tax credit for hydrogen production, supporting green energy for mining operations.
Clean Technology ITC
For capital investment in specified clean technologies.
Carbon Capture and Storage ITC
For developing and operating CCS capacity.
Canada is also driving innovation, creating a critical minerals industry ready for the future with efficiency and sustainability at its core, through:
National Research Council (NRC) Mining Programs:
Focused on developing and deploying technologies to improve efficiency, reduce environmental impact, and support the Canadian mining equipment sector.
Mining Innovation Commercialization Accelerator (MICA) Network:
A $112.4 million pan-Canadian initiative driving modernization and productivity.
Natural Resources Canada’s CanmetMINING:
A centre of excellence in critical minerals research, providing cutting-edge solutions.
$170 million
attracted in private-sector investment through the Mining Innovation Commercialization Accelerator (MICA) Network
Prioritizing sustainability through ESG leadership and innovation
Canada’s commitment to strong ESG leadership and innovation not only helps to unlock capital, but it also ensures the long-term viability and responsible development of critical mineral resources for clean energy solutions.
The Government of Canada’s Clean Economy Investment Tax Credits (ITCs) are available to mining investors:
Expanded Clean Technology Manufacturing ITC
A 30% refundable tax credit for new machinery/equipment used to extract, process, or recycle critical minerals, or to manufacture clean technologies, including the capital costs of processing facilities for gallium, germanium, indium, scandium, and antimony.
Clean Technology ITC
For capital investment in specified clean technologies.
Carbon Capture and Storage ITC
For developing and operating CCS capacity.
Clean Hydrogen ITC
A 15-40% refundable tax credit for hydrogen production, supporting green energy for mining operations.
Canada is also driving innovation, creating a critical minerals industry ready for the future with efficiency and sustainability at its core, through:
Natural Resources Canada’s CanmetMINING:
A centre of excellence in critical minerals research, providing cutting-edge solutions.
National Research Council (NRC) Mining Programs:
Focused on developing and deploying technologies to improve efficiency, reduce environmental impact, and support the Canadian mining equipment sector.
Mining Innovation Commercialization Accelerator (MICA) Network:
A $112.4 million pan-Canadian initiative driving modernization and productivity.
$170 million
Attracted in private-sector investment through the Mining Innovation Commercialization Accelerator (MICA) Network
Accelerating infrastructure investments today
The Government of Canada has made significant, tangible investments into the critical minerals sector. These support the rapid development of critical mineral projects and value chains.
The Ontario Government’s Critical Minerals Innovation Fund (CMIF) provides funding for exploration, mining development, production, and processing of critical minerals.
$20 million
invested since 2022, with a pledge of another $7 million announced in July 2025
The Canada Infrastructure Bank (CIB) is actively investing in critical minerals-enabling infrastructure.
$55 million
loaned to Torngat Metals Ltd. for its Strange Lake project
The Canada Growth Fund accelerates private capital into decarbonization and clean technology projects, including critical minerals.
$15 million+
to support the Canadian mining sector announced in March 2024
Accelerating infrastructure investments today
The Government of Canada has made significant, tangible investments into the critical minerals sector. These support the rapid development of critical mineral projects and value chains.
The Ontario Government’s Critical Minerals Innovation Fund (CMIF) provides funding for exploration, mining development, production, and processing of critical minerals.
$20 million
invested since 2022, with a pledge of another $7 million announced in July 2025
The Canada Infrastructure Bank (CIB) is actively investing in critical minerals-enabling infrastructure.
$55 million
loaned to Torngat Metals Ltd. for its Strange Lake project.
The Canada Growth Fund accelerates private capital into decarbonization and clean technology projects, including critical minerals.
$15 million+
to support the Canadian mining sector announced in March 2024
Copyright © 2025 Invest in Canada
Invest in Canada offers tailored and confidential services that make it easier to choose Canada for your next business expansion.
Copyright © 2025 Invest in Canada