Critical minerals are getting a boost after the G7 announced 26 investments and partnerships that aim to unlock $6.4 billion in projects through offtake agreements, stockpiling, and targeted financing led by Canada.
The package is the first round under the Canada-led Critical Minerals Production Alliance and implements the G7 Critical Minerals Action Plan launched in June 2025.
Canada will use the Defence Production Act to stockpile critical minerals to strengthen domestic capabilities in sectors tied to national defence and to support NATO deterrence goals.
Partnerships
Project execution centers on graphite, rare earths, and scandium in Quebec and Ontario. Nouveau Monde Graphite’s (TSX: NOU) Matawinie mine near Montreal advances with offtake arrangements involving the government, Panasonic Energy under Panasonic Holdings, and Traxys, plus an investment intention from the Japanese government. These build on more than $35 million from the Canada Growth Fund, a letter of interest from the Canada Infrastructure Bank, and a letter of interest for up to US$430 million from Export Development Canada, alongside contributions from Panasonic Energy and Mitsui & Co, to develop what the company targets as the largest fully integrated natural graphite facility in North America.
Rio Tinto’s scandium production plant in Sorel-Tracy, Quebec, will receive an equity-like royalty investment of about $25 million from the Canada Growth Fund and an offtake arrangement with the Canadian government.
Ucore Rare Metals (TSXV: UCU) will receive up to $36.3 million in conditional federal support, including up to $26.3 million through Natural Resources Canada and up to $10 million through FedDev Ontario, to scale a first-of-its-kind Kingston, Ontario rare earth processing facility that focuses on samarium and gadolinium and demonstrates RapidSX separation technology. End-customer support includes a memorandum of understanding with Germany’s VAC and US-based Permag, with rare earth feedstock procurement arrangements with Australia’s Hastings and ABx and a definitive technology agreement with Metallium to widen inputs to e-waste and tailings.
Torngat Metals’ Strange Lake rare earth project in Quebec adds an offtake and technology collaboration with France’s Carester for production and processing. Vianode’s synthetic graphite facility in St. Thomas, Ontario, received a letter of interest for up to US$500 million from Export Development Canada, a letter of interest from the Canada Infrastructure Bank, and a letter of interest from the German government for an export credit guarantee of up to US$300 million.
Northern Graphite (TSXV: NGC), currently producing natural graphite at Lac des Iles near Montreal, signed a letter of intent for an offtake and toll processing agreement with Alkeemia in Porto Marghera, Italy. The arrangement supports deploying Alkeemia’s purification technology at Northern Graphite’s planned anode facilities in France and Quebec, reinforcing anode-grade supply options for North American and European battery chains.
Allied financing
UK Export Finance is working with Export Development Canada and Natural Resources Canada to identify projects that secure UK supply and support Canadian mining and processing.
Italy’s Eni intends to invest in Canadian lithium, graphite, and technology startups focused on rare earth refining and battery materials recycling.
Canada and Australia also signed a joint declaration covering project financing, technology development, regulatory alignment, information sharing, and supply chain resilience.
Research and development
The package also funds research and development up to $20.2 million with international partners. Focus Graphite’s chemical-free electrothermal purification project is conditionally approved for up to $14.1 million to demonstrate high-temperature purification using flake graphite from the Lac Knife and Lac Tétépisca deposits.
Northern Graphite and Rain Carbon Canada secured $860,000 for upcycled natural graphite research for fast-charging, long-life lithium batteries.
PH7 Technologies and York University will receive up to $900,000 to develop an AI-optimized metallurgical process for battery-metal recovery to support sustainable lithium-ion recycling.
Telescope Innovations will receive up to $3.36 million in total government investments, including up to $319,200 from the National Research Council for a CellMine partnership on converting spent lithium-ion batteries into battery-grade lithium carbonate and cathode material, plus up to $3.04 million under the Critical Minerals Research, Development and Demonstration Program to scale low-cost lithium sulphide manufacturing for solid-state batteries.
Excir Works will receive $500,000 for a project with the Royal Mint UK and WEEE Scotland to expand recoverable metals from recycling streams.
NTwist will receive $500,000 for a project with Vale Europe and Tunley Environmental to improve nickel production and efficiency.
“We’re investing big in critical mineral projects across Canada. That’s going to create more high-paying careers, power our clean energy future, and strengthen our national defence,” Prime Minister Mark Carney said.
Prior to the summit, Ottawa has already signaled the “aim to cement offtake agreements” in the G7 ministers’ meeting in Toronto.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
