Question Period Note: Critical Minerals

Canada’s allies are concerned about reliance on non-market economies for the minerals and metals required for their manufacturing and defense industrial bases. The EU, the U.S., Japan and Australia are beginning to consider what steps governments can take in cooperation to secure supply chains and ensure that critical minerals are available for sensitive and high technologies used in global defense, renewable energy and advanced manufacturing. Canada has the potential to serve as an important supplier of these “critical minerals” and metals, and to develop associated downstream industries.

• Canada is a secure and sustainable supplier of critical minerals, which are in increased global demand and needed to support important manufacturing sectors such as communications technology, aerospace and defense, and clean technology.
• Developing Canada’s critical mineral industry has the potential to advance the competitiveness of our minerals and metals sector, further growing our economy and creating jobs for Canadians.
• Efforts to build resilient global critical mineral supply chains require international cooperation, which is why Canada is working collaboratively with its allies.

The Canada-U.S. Joint Action Plan on Critical Minerals Collaboration:
• Recognizing the importance of an integrated North American approach, Prime Minister Trudeau and President Trump committed to developing a Joint Action Plan on Critical Minerals Collaboration in June 2019.
• Finalized on January 9, 2020, the Plan will position our countries to make a significant contribution to broader efforts with our allies to address global supply chain challenges.
• This collaboration presents an opportunity for mutual
benefit, by jointly addressing security and defence concerns, facilitating greater minerals trade and investment, and increasing industry competitiveness in both Canada and the U.S.
• Canada represents the most secure and resilient source of mineral and metal imports to the U.S. and is currently an important supplier of 13 of the 35 minerals deemed critical by the U.S., with the potential to supply many more.
Other International Actions on Critical Minerals:
• In parallel with the development of a Canada-U.S. critical minerals action plan, Canada is also engaging with other international allies – including the EU, Japan, and Korea – to seek diversification of trade and investment flows.
Rare earth elements in Canada:
• Global allies are looking to Canada as an important future source of the rare earth elements that are key inputs in consumer electronic devices, wind turbines, electric vehicle motors, and jet aircraft, in addition to other industrial applications.

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