In an era defined by the race for clean energy, digital transformation, and geopolitical realignment, rare earth elements (REEs) have emerged as the backbone of modern technology. From electric vehicles and wind turbines to smartphones and defense systems, these 17 chemically similar elements are indispensable. Yet, the global supply chain is alarmingly concentrated,China controls over 90% of rare earth processing capacity. For Canada, this presents both a challenge and a historic opportunity.
Why Rare Earths Matter
Rare earths like neodymium, praseodymium, dysprosium, and terbium are essential for:
- Permanent magnets in EV motors and wind turbines
- Military-grade sensors and guidance systems
- Smartphones, laptops, and medical imaging devices
As countries seek to decarbonize and secure supply chains, demand for REEs is expected to surge by 400–600% over the next two decades.

Canada’s Strategic Advantages
1. Abundant Geological Resources
Canada is home to significant rare earth deposits across multiple provinces:
- Quebec: Strange Lake and Matawinie projects (heavy REEs, graphite)
- Saskatchewan: Light REEs and North America’s first integrated processing facility
- Ontario: Nickel-cobalt-REE deposits like the Crawford project
- New Brunswick: Tungsten and molybdenum mines fast-tracked for approval
These deposits are often high-grade and located in politically stable regions, making them attractive to global investors.
2. Proximity to U.S. and Allied Markets
Canada’s geographic location offers a logistical advantage for supplying REEs to North American and European manufacturers. This reduces transportation costs and enhances supply chain resilience.

3. Strong Environmental and Governance Standards
Canada’s ESG credentials make it a preferred partner for countries seeking ethically sourced minerals. This is especially important as consumers and investors demand transparency and sustainability.

Building a Rare Earth Ecosystem
To move from potential to production, Canada must focus on four pillars:
1. Invest in Processing Infrastructure
Mining is only the first step. The real value lies in processing and refining REEs into usable materials. Canada has already taken bold steps:
- The Saskatchewan Research Council (SRC) is building North America’s first commercial-scale rare earth processing facility
- The federal government has launched a $2 billion Critical Minerals Sovereign Fund to support equity investments, loan guarantees, and offtake agreements
These initiatives aim to reduce reliance on Chinese processing technologies and build a domestic mine-to-magnet supply chain.
2. Accelerate Project Approvals
Lengthy permitting processes have historically slowed mining development. Canada is now fast-tracking projects deemed of national interest, such as:
- Nouveau Monde Graphite’s phase 2 project in Quebec
- Canada Nickel Co.’s Crawford project in Ontario
- A tungsten-molybdenum mine in New Brunswick
The proposed “one project, one review” model could streamline approvals and attract more private investment.

3. Foster Public-Private Partnerships
Canada is embracing a model where government and industry co-invest in strategic projects. This includes:
- Equity stakes in rare earth mining and processing ventures
- Offtake agreements with global tech giants like Amazon and Microsoft, who are backing urban mining initiatives in Ontario
- Collaboration with G7 allies to secure non-Chinese supply chains
These partnerships de-risk projects and ensure long-term demand.

4. Support Innovation and R&D
Canada must invest in:
- Urban mining: Recovering REEs from e-waste and EV batteries
- Green extraction technologies: Reducing environmental impact
- Advanced materials: Developing REE-based alloys and magnets
The SRC’s in-house technology for monazite processing is a prime example of Canadian innovation born out of necessity when China restricted tech exports in 2020.

Sustainability and Indigenous Partnerships
Canada’s path to rare earth leadership must be rooted in sustainability and reconciliation.
Environmental Stewardship
Projects like Torngat Metals’ Strange Lake mine have raised concerns due to radioactive byproducts like uranium and thorium. Canada must:
- Enforce strict environmental assessments
- Invest in waste treatment and containment
- Promote circular economy practices
Indigenous Engagement
Many REE deposits lie on or near Indigenous lands. True partnership means:
- Free, Prior, and Informed Consent (FPIC)
- Revenue sharing and equity participation
- Training and employment opportunities
This approach not only ensures social license but also aligns with Canada’s reconciliation goals.

Competing on the Global Stage
Canada is not alone in its ambitions. The U.S., Australia, and the EU are all investing heavily in critical minerals. To stand out, Canada must:
- Lead on standards: Promote ESG-based certification for REEs
- Expand stockpiles: Build strategic reserves of scandium, graphite, and other niche metals
- Market itself as a trusted supplier: Highlight transparency, rule of law, and ethical sourcing

Conclusion: From Potential to Powerhouse
Canada is at a crossroads. With the right mix of policy, investment, and innovation, it can evolve from a raw mineral exporter to a global powerhouse in rare earths. The stakes are high,not just economically, but geopolitically. In a world where supply chains are weapons and minerals are strategic assets, Canada has both the resources and the responsibility to lead.
By building a resilient, ethical, and value-added rare earth ecosystem, Canada can secure its place as a critical player in the clean energy future.