Canada must find a way to fast-track critical minerals production without cutting corners on Indigenous rights and environmental protections, according to new research from the Canadian Climate Institute. Otherwise, we will lose out on multi-billion dollars of economic activity as demand for copper, nickel, lithium, graphite, cobalt, and rare earth elements soars in the coming years. Spending of up to $65 billion is required to increase production of the critical minerals to meet global demand, the report said. Those minerals “form the building blocks of clean technologies like renewable energy and electric vehicles, among others,” a news release on the report said Friday. “Canada’s current production levels have barely scratched the surface of existing reserves, and demand is growing for these minerals that are essential to enhancing Canada’s energy security and enabling the global transition to clean technologies.” The report, published Friday by the Canadian Climate Institute, is called ‘Critical Path: Securing Canada’s place in the global critical minerals race. It said that investment in the six priority critical minerals would have to grow substantially to keep pace with domestic and global demand. “In fact, by 2040, Canada risks losing out on $12 billion a year in critical minerals production unless mining ramps up to meet demand from domestic industry alone,” the release said. “Amid increased competition for critical minerals, geopolitical turmoil, and rapidly evolving trade relationships, new investment of $30 billion would have to flow into Canada over the next 15 years to fully meet domestic critical minerals potential.” To meet the growth in global demand — which is expected to double by 2040 — investment in Canadian critical minerals would have to increase to $65 billion in that time frame. Because of the instability of future market prices, the report says governments should “share risks” to give investors more certainty. That could take the form of “equity investments, offtake agreements or contracts for difference.” While streamlining the approvals process for new mines is critical, the report said it’s equally important to not cut “corners when it comes to Indigenous rights and protecting the environment, (which) has been proven to backfire and lead to further delays.” “The report underscores that successful critical mineral projects require strong partnerships with Indigenous nations and communities, ongoing respect and recognition of Indigenous rights and self-determination, and robust environmental protections.” Specifically, governments should provide funding for Indigenous communities “to participate and partner on mining projects and enhance access to capital for ownership opportunities.” “Strengthening mining regulations to reduce environmental risks and liabilities for communities that build on existing voluntary standards,” is another important step, the report said. “Critical minerals represent a multi-billion-dollar opportunity for Canada in a global energy transition that continues to pick up pace,” Rick Smith, president of the Canadian Climate Institute, said in the release. “But Canada’s critical minerals sector is struggling to attract enough investment to keep up with demand. As competition heats up and trade relationships evolve, Canadian governments should make haste to adopt policies to unlock private investment and bring resources to market faster—all while forming respectful partnerships with Indigenous communities and reducing environmental risks." “All clean growth projects will be built on treaty lands, land claim areas, traditional territories, or within close proximity to an Indigenous community,” said JP Gladu, founder and principal of Mokwateh. “This unique moment in time can affirm Indigenous rights to land and self-determination and encourage meaningful partnership between Indigenous nations, industry, and government. The Canadian Climate Institute’s report provides a clear path on how Canada can grow its critical minerals sector in full partnership with Indigenous Peoples.”
