Finance Minister Says Refining Critical Minerals Is ‘Key’ to Becoming a Competitive Supplier

Finance and National Revenue Minister François-Philippe Champagne responds to a question during question period in the House of Commons on Parliament Hill in Ottawa on Nov. 7, 2025. The Canadian Press/Sean Kilpatrick

Finance Minister François-Philippe Champagne says his goal is to make Canada “the NATO partner of choice,” noting that refining critical minerals is “the name of the game” for becoming a competitive supplier.

“Exploration, extraction is something, but what we need is refining. That’s the key,” Champagne told a business audience in Calgary on Nov. 10, while answering questions about the Liberal government’s recently tabled budget. “Refining is the name of the game.”

The minister noted that refining critical minerals is essential for defence, and said Canada has refineries for minerals like titanium, which is needed to build submarines and other defence systems.

Champagne said that while there are other countries that can provide critical minerals, Canada can offer more with “proximity to resources, market, and refinery.”

“My goal is ... if Canada could become the NATO partner of choice,” the minister said, adding that critical minerals are becoming a “decisive” product for the “competitiveness” of countries.

Champagne told the business audience that “mentalities are evolving” when it comes to developing oil and gas resources and ensuring they can get to market. He said Prime Minister Mark Carney has “changed the tone” by describing Canada as an “energy superpower in both clean and conventional energy,” which he said has changed how people perceive these things.

“They understand today the nexus between economic security, energy security, and national security,” Champagne said.

The minister also said Canada needs to “get [its] act together” in terms of ensuring regulations don’t hold such projects back, and noted there is more work to be done to boost the country’s productivity. However, he said he thinks people are now seeing the government is “serious” about investment.

“I think we have done a course correction now,” Champagne said. “I think people have found a new confidence that this is a serious government that wants to do serious things, that is serious about growth and investment.”

Critical Minerals Measures

The Liberal government has recently announced several measures focused on critical minerals in Canada. Champagne tabled the Carney government’s first budget on Nov. 4. The budget bill proposes to spend $2 billion over five years, starting next fiscal year, on a “Critical Minerals Sovereign Fund” for equity investments, loan guarantees, and offtake agreements.

The budget also proposes to provide $371.8 million over four years, starting next fiscal year, to create the “First and Last Mile Fund,” which it says would support the development of critical mineral projects and supply chains, with a focus of getting near-term projects into production.

Additionally, the budget proposes to expand eligibility for the Critical Mineral Exploration Tax Credit to include “an additional 12 critical minerals necessary for defence, semiconductors, energy, and clean technologies.”

Canada recently announced the first round of 26 new investments, partnerships, and measures as part of a G7 critical minerals alliance in an apparent attempt to counter China’s current global dominance in the sector.

Energy Minister Tim Hodgson said, at the conclusion of the G7 Environment Ministers’ Meeting on Oct. 31, that the government would spend $6.4 billion on Canadian critical minerals projects. He said this was a significant step forward in creating a resilient G7 critical minerals supply chain and protecting member nations’ national security interests. On Oct. 31, the ministers released a joint statement saying that they want to not be dependent on supply chains controlled by nations that engage in non-market policies and practices.

At the G7 summit in Alberta in June, Canada put forward the Critical Minerals Production alliance, which aims to put its Critical Minerals Action Plan into effect and incentivize public and private investments in the mining and processing of critical minerals, including rare earth elements, among G7 countries and allies.

Among the projects Hodgson announced are Nouveau Monde Graphite’s Matawinie mine close to Montreal; a pilot scandium facility by Rio Tinto in Sorel-Tracy, Que.; Northern Graphite’s Lac des Îles mine; a rare earth mineral processing operation by Torngat Metals in Nunavik, Que.; an expansion phase of Ucore Rare Metals’ facility in Kingston, Ont.; and a $2 billion synthetic graphite factory in St. Thomas, Ont.

Hodgson said some of the projects are set to begin producing in the coming months, while others will require two to three years to be operational.

Paul Rowan Brian and The Canadian Press contributed to this report.