Canada Adds 3 New Minerals To Critical List For Economic, Energy Future

Energy and Natural Resources Minister Jonathan Wilkinson announced an expansion of Canada's critical minerals list on Monday, adding high-purity iron, phosphorus, and silicon metal to the existing 31 minerals. This update aims to enhance Canada’s economic future and energy transition by bringing the total to 34 essential materials.

“By updating Canada’s critical minerals list, we are taking a proactive step to ensure that Canada’s efforts to seize the generational economic opportunity presented by our critical minerals wealth are well-informed by the most accurate market trends, geopolitical factors, and science,” Wilkinson said on Monday.

What Happened: Canada first introduced its critical minerals list in March 2021 as part of the 2030 Emissions Reduction Plan, aiming to cut greenhouse gas emissions by 40-45% below 2005 levels by 2030 and achieve net-zero emissions by 2050.

The list is reviewed every three years to stay relevant to current market and geopolitical conditions. The recent update followed extensive consultations with provinces, territories, industry stakeholders, Indigenous groups, and other interested parties.

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Why It Matters: The newly included minerals are essential for modern technologies and industries. Silicon metal is crucial in producing chips and semiconductors, which are foundational to almost all electronic devices. High-purity iron is key in producing green steel, significantly contributing to decarbonization efforts.

Phosphorus, combined with potash, is vital for food security through its use in fertilizers and integral to lithium/iron/phosphate batteries, a strategic element in the electric vehicle value chain.

There is no global definition of critical minerals, so Canada has developed its classification criteria. A mineral must meet both of the following criteria: the supply chain is threatened, and there is a reasonable chance of the mineral being produced in Canada.

Additionally, the mineral must meet one of the following criteria:

• Essential to Canada's economic or national security.
• Required for the national transition to a sustainable, low-carbon and digital economy.
• Positions Canada as a sustainable and strategic partner within global supply chains.

The federal government has introduced various policies to benefit companies in the critical minerals sector. These include a 30% tax credit for investors in junior mining companies and the $1.5 billion Critical Minerals Infrastructure Fund to address key infrastructure gaps.

By expanding the critical minerals list, Canada aims to bolster its position in the global market, particularly in sectors vital for the transition to a greener economy

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