The critical minerals mining industry is experiencing substantial growth, driven by the increasing demand for these minerals in various applications, particularly in the green and digital economy. The sector's compound annual growth rate (CAGR) is expected to be significant in the coming years, although the exact figures can vary depending on the specific mineral in question.
The growth of this industry is largely influenced by the push towards renewable energy and electric vehicles, which heavily rely on minerals like lithium, graphite, nickel, cobalt, and copper. As countries worldwide continue to pursue sustainability goals, the demand for these critical minerals is expected to surge. This presents a significant opportunity for Canada, which possesses abundant natural resources.
However, the industry also faces challenges such as environmental concerns, regulatory pressures, and geopolitical issues that can impact the supply chain. The success of the Canadian critical minerals mining industry will largely depend on the ability to address these challenges while capitalizing on the increasing demand. This makes the role of the Government of Canada’s Critical Minerals Mining Initiative and the allocated budget crucial in shaping the industry's future.
These six minerals are lithium, graphite, nickel, cobalt, copper, and rare earth elements are a key focus of the Government of Canada’s Critical Minerals Mining Initiative and a $4B budget in 2022. Critical minerals are the building blocks for the green and digital economy and present a generational opportunity for Canada in many areas:
- exploration
- extraction
- processing
- downstream product manufacturing
- recycling.