Canada has unveiled the first wave of projects under the G7’s critical minerals production alliance — a move designed to counter China’s overwhelming control of global mineral supply chains. The 25 new initiatives include purchase agreements for a Quebec graphite mine and funding to expand a rare earth refinery in Ontario.
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Energy and Natural Resources Minister Tim Hodgson framed the announcement as a signal of the G7’s determination to diversify supply chains and safeguard national interests. “Every delay is a concession of economic and national security interests. We will no longer accept that,” he said.
China currently dominates global critical mineral refining, controlling roughly 70% of production for 19 of the 20 most essential minerals, according to the International Energy Agency. Its influence is even stronger in rare earth refining, where it accounts for 91% of global output. Recently, Beijing has tightened export restrictions, underscoring the urgency for the G7 to develop alternative supply sources.
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Just ahead of the Toronto meetings, China temporarily paused some export controls as part of a deal with the U.S. Still, American Energy Secretary Chris Wright warned that such relief was fleeting. “China used non-market practices to squeeze the rest of the world out. Everybody sees that now,” he said.
Among the major announcements, the federal government joined Panasonic and Traxys in offtake agreements with Nouveau Monde Graphite’s Matawinie mine near Montreal. Canada also committed up to $500 million in financing through Export Development Canada to support Norwegian firm Vianode’s synthetic graphite plant in St. Thomas, Ontario — a facility backed by a multibillion-dollar supply deal with General Motors.
In addition, Ucore Rare Metals’ Kingston, Ontario refinery was conditionally approved for up to $36 million to scale up processing of rare earth elements used in EVs, nuclear reactors, and MRI machines.
Experts say the announcements mark progress but caution that more groundwork is needed. “Canada positioned itself well in the G7 minerals discussion,” said University of Ottawa professor Wolfgang Alschner. “But these are project-driven moves — much policy work remains ahead.”
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