The framework evaluates critical minerals through a holistic lens—defence, clean energy, and digital tech—expanding stockpiling authority and tax credits, including expanding the Critical Minerals Exploration Tax Credit to more minerals.

Environmental and social considerations are embedded, with the Indigenous Advisory Council, funding for Indigenous engagement, and environmental performance targets tied to processing tech and infrastructure projects.

Canada unveils a C$2 billion Critical Minerals Sovereign Fund to be deployed through Natural Resources Canada, aiming to shift from private to direct government involvement in critical mineral development by 2029/30.

International cooperation features prominently, with bilateral and multilateral alliances—including the G7 and NATO—plus joint investments, stockpiling, and technology transfer to strengthen allied supply chains.

The 2025 Budget lays out a comprehensive strategy anchored by the Sovereign Fund, starting in 2026-27, for equity investments, loan guarantees, and offtake agreements, plus funds to accelerate processing tech and First and Last Mile connectivity.

Investment mechanisms accelerate development across stages: exploration incentives and surveys, processing tech funding and tax credits, First and Last Mile connectivity funding, and a larger infrastructure bank expansion of about C$10 billion.

Long-term goals aim to move Canada from raw exports to value-added processing and advanced manufacturing, strengthening global supply chain resilience and Indigenous participation while prioritizing environmental sustainability.

A Multi-Faceted Planning Framework guides the effort, incorporating economic impact assessments, supply chain vulnerability mapping, technology dependency analysis, geopolitical risk quantification, and permitting timelines.

Three core fund mechanisms address early-stage capital gaps: direct equity investments, loan guarantees to reduce financing costs, and offtake agreements to secure guaranteed purchases.

A multi-channel strategy blends sovereign investment, tax incentives, and infrastructure funding, leveraging public-private partnerships to scale processing capacity.

Economic aims include multifold private sector leverage, with expectations of significant private co-investment returns and substantial government equity-driven project value and infrastructure leverage.

Diversifying supply chains remains central, addressing geographic and processing concentration risks by restoring capacity, forming allied partnerships, and pursuing circular economy initiatives.