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Canada Proposes C$2 Billion Critical Minerals Fund in 2025 Budget

The plan signals a state-led push to secure critical inputs for clean energy, semiconductors, defense.

Overview

  • Natural Resources Canada would manage the new Canada Critical Minerals Investment Fund, using equity stakes, loan guarantees, and offtake agreements, with C$50 million over five years to set it up.
  • The budget creates a C$372 million First and Last Mile Fund to advance near‑term projects and folds in the existing C$1.5 billion Critical Minerals Infrastructure Fund through 2029–30.
  • The Critical Mineral Exploration Tax Credit is expanded to 12 additional minerals, including tungsten, tin, and manganese, broadening access to flow‑through financing for junior exploration.
  • Targeted allocations include C$585 million under a Climate Competitiveness Strategy and C$443 million over five years for processing technologies, joint investments with allies, and stockpiling.
  • Industry leaders praised the package as a strong signal to investors, while an academic expert warned it departs from market economics; the plan sits within a projected C$78.3 billion deficit and still requires parliamentary approval.