Canada Teams with Allies to Diversify Mineral Supply Chains Amid Export Controls

Canada's Energy and Natural Resources Minister, Tim Hodgson, is working with allied nations to finance critical mineral projects and diversify supply chains. Unlike the US approach, Canada is adopting a differentiated cooperation model, focusing on capacity-sharing mechanisms with partners to ensure production is allocated to allied markets. This strategy aims to address export controls impacting industrial production in G7 and NATO countries.

Canada's Energy and Natural Resources Minister, Tim Hodgson, has announced that the country is collaborating with its allies to finance critical mineral projects. This initiative aims to diversify supply chains and address export controls that are impacting industrial production in G7 and NATO countries. Unlike the U.S. approach, Canada is adopting a differentiated cooperation model, focusing on capacity-sharing mechanisms with partners to ensure production is allocated to allied markets [1].

Minister Hodgson emphasized that the key target for these projects would be minerals subject to China’s export restrictions. He noted that Canada is looking to replicate the success of the U.S. government's MP Materials deal, but with a focus on shared production with allies rather than sending the entire output to a single market [1].

The MP Materials deal, a public-private partnership with the U.S. Department of Defense, was established to build a domestic rare earth magnet supply chain and reduce foreign dependency [1]. Canada's approach, however, seeks to share the benefits of these projects with its allies, ensuring that the production is distributed among multiple countries.

This strategy is part of a broader effort to enhance Canada's role in global mineral markets and strengthen its relationships with key allies. By focusing on capacity-sharing, Canada aims to mitigate the risks associated with single-source dependencies and ensure a more resilient and diversified supply chain.

References:
[1] https://www.mining.com/web/canada-and-allies-to-explore-funding-critical-mineral-projects-minister-says/
[2] https://energynews.oedigital.com/mining/2025/08/26/minister-canada-and-its-allies-will-explore-financing-critical-mineral-projects