Canada may have barely scratched the surface when it comes to mining critical minerals, and a new report suggests developing those resources could potentially create thousands of new jobs and help bolster the Canadian economy amid trade disruptions with the United States.
From electric vehicles to infrastructure and housing development, plus a new commitment by the federal government to increase defence spending to meet new NATO targets, demand for critical minerals is expected to continue to rise, and more job creation will likely be a part of that expansion.
Bill C-5 is also a major action plan by the federal government to speed up projects that support Canada’s economic expansion, including for critical minerals.
The latest report by the non-profit group Battery Metals Association of Canada outlines priorities for projects in mining and processing critical minerals, like copper, lithium and nickel.
The BMAC says in its study that increasing economic productivity, especially in critical minerals, will lead to “innovation potential and high-paying jobs” while supporting local communities. That comes as the new NATO spending target is expected to see members of the military alliance spend 3.5 per cent of their GDPs on defence and 1.5 per cent more on infrastructure to support defence needs.
“At first glance, it seems like that 1.5 per cent would really be well spent on critical battery minerals that are going to increase our geotech, political resilience and our energy security in an era of geopolitical competition,” said Bentley Allen, a principal at the The Transition Accelerator — one of the key groups contributing to the report.
“I think that there’s a real opportunity here to build out these defence metals. Most of the metals that we looked at in this report were focused on that battery value chain, but we also have broader work at the transition accelerator on tungsten and zinc and other things that have direct military applications
“We’re really hitting on a couple of different important national agendas with this work.”
Prime Minister Mark Carney has ambitions to invest in the Canadian economy and develop the nation into an “energy superpower” that is less reliant on others, including the U.S.
Get daily National news
Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
He has vowed to do this by working to remove interprovincial trade barriers and labour mobility issues, in addition to funding new projects and developments — including in the mining sector to support growing international demand.
“At the G7, all of the countries said they wanted to buy Canadian critical minerals,” said Energy and Natural Resources Minister Tim Hodgson, speaking at an event in Toronto on Wednesday.
“At NATO, what the prime minister is hearing is that all of those countries want to buy our critical minerals — this is an opportunity for us.”
Allen said in Western Canada, “I think we should be looking at $25 billion of mining investment, which would create about 100,000 really good quality jobs.”
“As many as 10,000 of those jobs could be Indigenous jobs as well, especially in northern B.C., the Northwest Territories and Yukon, and we need their work in order to make this country as great as it can be.”
That number of potential jobs mirrors predictions from the federal government’s Critical Minerals Strategy, which suggests developing Canada’s critical minerals will create and support “hundreds of thousands of well-paying jobs across the country.”
“They include, but are not limited to, geoscientists, mining engineers, and metallurgists, workers skilled in computer technology, heavy equipment operation, emerging technologies like AI and automation, minerals processing, and automotive assembly,” that federal strategy says.
One of the main areas of focus for mining critical minerals in Canada is the so-called ‘Ring of Fire’ region in northern Ontario.
This is in addition to prior investments and partnerships within Eastern Canada and Quebec to build a battery supply chain specific to electric vehicle production, with names like Honda making prior commitments.
“Although recent investments have supported infrastructure funding for mining projects in the western provinces, the scale and focus still differ significantly compared to those in the eastern and central provinces,” the report says.
“The whole country can and should benefit from investment in electric mobility and energy storage.”
The report by the BMAC says one of its goals was to frame how the western provinces should be more a part of the conversation, with specific regions highlighted for what they have to offer.
One example is northern British Columbia, which the report describes as “mineral-rich” with “strong-potential” for mining copper, nickel, gold and silver, but which needs further investment to build key infrastructure to mine these materials, as well as hiring and training the necessary workforce.
The report also highlights western Alberta’s “strong potential for lithium extraction,” and says its current oil and gas infrastructure, combined with its skilled workforce, means the region is well-positioned for future development.
However, the report says unlocking the full potential would require access to clean energy, supportive policies and strong co-ordination with another key Alberta region — the Calgary-Edmonton corridor.
The BMAC says the Calgary-Edmonton corridor “can become a globally competitive hub for advanced battery materials and processing,” and this is given the strong potential for lithium extraction in western Alberta. It will also require investing in clean energy and “talent,” the report says, alluding to potential hiring that would go along with growth in the industry.
Statistics Canada last reported that unemployment in Canada increased to seven per cent in May, with manufacturing jobs continuing to see some of the biggest job losses.
With economists predicting U.S. President Donald Trump’s tariffs to further impact the economy and job market, Canada has work to do to be able to minimize further potential damage.
Some economists are even forecasting an additional 100,000 jobs lost by the third quarter of 2025, unless government policy and investment offset the current trajectory.
Read the full article here
