Backgrounder: Government of Canada invests to unlock Canada’s critical minerals advantage

On March 3, 2026, at the 2026 Prospectors and Developers Association of Canada (PDAC) Convention, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced up to $165.2 million for 22 Canadian projects that will accelerate planning, development and processing capacity across the country and unlock a total of $434 million in critical minerals projects across eight provinces.

This support includes:

• Up to $114.9 million under the First and Last Mile Fund (formerly the Critical Minerals Infrastructure Fund) for one approved and four conditionally funded projects, pending final due diligence, to undertake activities such as infrastructure upgrades and construction, environmental reviews and engagement with Indigenous communities.
• Up to $17.8 million under the Energy Innovation Program for four projects to advance clean energy technologies that improve the reliability, affordability and climate competitiveness of Canada’s energy system.
• Up to $27.5 million under the Critical Minerals Research, Development and Demonstration program for three projects to develop cutting-edge mining technologies.
• Up to $2.8 million under the Indigenous Natural Resource Partnerships program for three projects to increase the economic participation of Indigenous communities and organizations in natural resource projects and our clean energy future.
• Up to $2.2 million under the Critical Minerals Geoscience and Data initiative for seven projects to generate and enhance access to new data that will support exploration of critical minerals deposits in Canada.

First and Last Mile Fund

The First and Last Mile Fund (FLMF) will support the development of critical minerals mines and upstream and midstream supply chains with a focus on getting near-term projects into production, enabling processing and transporting minerals to domestic and international markets.

Recognizing that most critical minerals deposits and enabling infrastructure projects in Canada are located on Indigenous territories, the FLMF will make specific funding available to enable Indigenous leadership, engagement and participation throughout the value chain.

As announced in Budget 2025, the FLMF has subsumed the Critical Minerals Infrastructure Fund (CMIF). Projects supported through CMIF are now being advanced under this new program.

Project name: Anyox Hydro Redevelopment Project 
Recipient: Boney Creek Development Ltd. 
Location: Anyox, British Columbia
Funding amount: $736,778  
Description: This project will advance pre-construction requirements to recommission the formal operations of Anyox Hydroelectric facility, enabling the generation of clean, renewable energy to support critical mineral development in northwest British Columbia, as part of the (Northwest Critical Minerals Corridor, which was referred to the Major Projects Office by Prime Minister Carney in November 2025). 

Project name: Saskatchewan North–South Electricity Systems Interconnection Preconstruction Project 
Recipient: Saskatchewan Power Corporation (SaskPower) 
Location: Regina, Saskatchewan
Funding amount: $18,075,000
Description: This project will advance planning and design work for two new transmission lines of approximately 250 kilometres each that will connect Saskatchewan’s northern and southern electricity grids on the eastern side of the province. These transmission lines would support critical mineral mining and enhance electricity reliability for communities in the Athabasca Basin region of northern Saskatchewan. The project involves Indigenous engagement as part of route selection planning as well as environmental reviews and permitting and infrastructure design.

Project name: Northwest Transmission Line (NTL) System Upgrades
Recipient: British Columbia Hydro and Power Authority
Location: Northwest British Columbia
Funding amount: $44,216,099
Description: This project has been conditionally approved, pending final due diligence, to support expanded electricity transmission capacity for major mining developments in northwest British Columbia within the Golden Triangle (Northwest Critical Minerals Conservation Corridor). System additions and upgrades to BC Hydro’s existing Northwest Transmission Line will enable the supply of up to 145MW to Newmont’s Red Chris copper mine expansion, which was referred to the Major Projects Office in fall 2025, and up to 25MW for the construction phase of Seabridge’s KSM gold mining project. The project also includes the new Treaty Creek Terminal switching station and upgrades to the Skeena and Bob Quinn substations, which will allow for up to 115MW of existing BC Hydro grid power to be transmitted to the supporting mining projects.

Project name: BC Hydro System Upgrades for Highland Valley Copper Mine
Recipient: British Columbia Hydro and Power Authority
Location: Kamloops, British Columbia
Funding amount: $50,000,000
Description: This project has been conditionally approved, pending final due diligence, to upgrade BC Hydro’s regional transmission system, including reconductoring over 40 km of 138 kV transmission line and associated structures, as well as the Nicola substation to provide an additional 34 MW of electricity in support of Teck Resources’ Highland Valley Copper Mine Life Extension Project near Kamloops, British Columbia. The project will also include enhancements to protection and control systems to ensure reliable power delivery.

Project name: Wicheeda REE Clean Energy and Transportation Infrastructure Project
Recipient: Defense Metals Corp.
Location: Vancouver, British Columbia
Funding amount: $1,878,250
Description: This project has been conditionally approved, pending final due diligence, to advance the development of a new 60-km transmission line delivering 35 MW of electricity from the BC Hydro grid to the Wicheeda Rare Earth Elements Project mine site, along with the design of upgrades to the 43-km forest service road connecting Highway 97 to the mine site. Scheduled to commence in 2026 and conclude in 2028, the project includes BC Hydro inter-connection, which would connect the Wicheeda mine to the BC Hydro grid at the existing McEwan substation, as well as mine power optimization studies, product transportation and rail network integration studies and Indigenous engagement.

Energy Innovation Program

The Energy Innovation Program (EIP) advances clean energy technologies that will help Canada maintain a competitive, reliable and affordable energy system while transitioning to a low‑carbon economy. Projects funded through the Mining Decarbonization Demonstration Call for Proposals support the uptake of energy‑decarbonization technologies within Canada’s mining sector, focusing specifically on demonstration activities in upstream to midstream operations. Projects funded under the Battery Industry Acceleration Call for Proposals support technologies that accelerate the decarbonization, safety and competitiveness of Canada’s battery value chain.

Project name: Demonstration of 3 Hybrid Energy Management System V3 Units to Reduce Diesel Fuel Consumption at Arctic Mine Sites
Recipient: CleanDesign Inc.
Location: Toronto, Ontario
Funding amount: $5,000,000
Description: This project will install and test three units of CleanDesign’s hybrid Energy Management System (hEMS) at B2Gold’s Goose Mine in Nunavut. The system utilizes CleanDesign’s proprietary software system that leverages machine learning with batteries that work with the mine’s existing diesel generators at two power stations to save fuel, improve efficiency and reduce operating and maintenance costs. By storing and delivering power more efficiently, the HEMS is expected to help reduce the amount of diesel fuel the mine needs by close to 4,000 litres per day. The project will help de-risk the technology, supporting the future of cleaner, lower‑emission mining and Arctic infrastructure.

Project name: The CAHM Platform — Revolutionizing How We Break Rock to Accelerate the Green Economy
Recipient: ReThink Milling, Inc.
Location: Montreal, Quebec
Funding amount: $5,000,000
Description: This project will test two new grinding machines based on the Conjugate Anvil Hammer Mill (CAHM) technology that uses 65 percent less energy than traditional rock‑breaking equipment. The economic and environmental benefits of this technology include reduced electricity demand. which drastically reduces GHG emissions; a simpler comminution circuit, which reduces capital expenditures; and the elimination of consumable grinding media used in traditional tumbling mills, which decreases both operating expenses and Scope 3 GHG emissions. This project will see the design, fabrication and operation of the CAHM (a SAG mill or HPGR coarse-grinding alternative) and the MonoRoll (a Ball Mill fine-grinding alternative), in extended site-based demonstration campaigns to evaluate performance operability, reliability and wear rates.

Project name: Battery-Grade Graphite: A Canadian Low-GHG Solution From Regolith Resources 
Recipient: Green Graphite Technologies Inc. (GGT) 
Location: Nelson, British Columbia, and Mississauga, Ontario
Funding amount: $4,750,000 
Description: This project will demonstrate a lower‑energy process to upgrade near‑surface graphite for use in lithium‑ion batteries. The graphite will be supplied from Weaver Energy’s permitted quarry in British Columbia and processed using a two‑step technology developed by Green Graphite Technologies. Compared with traditional mining and overseas processing, this approach reduces overall energy consumption by skipping the energy-intensive crushing and grinding of ore and using an efficient continuous electric furnace.

Project name: Securing the Lithium Iron Phosphate Supply Chain
Recipient: Nano One Materials Corp.
Location: Burnaby, British Columbia
Funding amount: $3,000,000
Description: This project will research, develop and further optimize methods of producing lithium iron phosphate (LFP) cathode active material using various forms of iron feedstock. Objectives are to further reduce cost, waste and complexity of making LFP when compared to conventional methods, increase supply chain resilience and flexibility and demonstrate laboratory-to-pilot scale production while meeting battery performance, quality and pricing targets.

Critical Minerals Research, Development and Demonstration Program

The Critical Minerals Research, Development and Demonstration (CMRDD) program aims to advance the commercial readiness of emerging mineral-processing unit operations or technologies that will support the development of battery, magnet and zero-emission vehicle value chains in Canada.

Project name: Low-Carbon Production of Nickel and Cobalt from Asbestos Residues  
Recipient: Exterra Technologies
Location: Val-des-Sources, Quebec
Funding amount: $5,000,000  
Description: This project will demonstrate an innovative low-carbon process to recover nickel, cobalt and magnesium from asbestos mine tailings. By applying its circular mineral processing platform, Exterra aims to transform legacy mining residues into battery-grade materials for clean energy technologies while reducing environmental liabilities and moving toward full commercialization.

Project name: Green Emulsion Liquid Membrane Selective Separation System for Nickel, Cobalt and Copper 
Recipient: The Governors of the University of Alberta 
Location: Edmonton, Alberta
Funding amount: $575,850 
Description: This project will design, build and operate a pilot‑scale processing system to continuously separate copper, nickel and cobalt using a new, clean-extraction technology. Over three years in Edmonton, Alberta, the project will optimize and operate the integrated system, using multiple processing stages to recover each metal and demonstrate the technology’s performance in real‑world conditions.

Project name: Spodumene Processing Pilot and Lithium Conversion Plant Engineering Study
Recipient: Mangrove Lithium
Location: Delta, British Columbia
Funding amount: $21,883,900
Description: This project has been conditionally approved, pending final due diligence, and aims to pilot spodumene concentrate processing alongside Mangrove’s lithium refining to validate the effectiveness of a mine to battery-grade lithium end‑to‑end process. It will also complete early engineering work for a future, larger‑scale lithium refinery.

Indigenous Natural Resource Partnerships Program

The Indigenous Natural Resource Partnerships (INRP) program aims to increase the economic participation of Indigenous communities and organizations in the development of natural resource projects that support the transition to a clean energy future.

Project name: Indigenous Engagement Strategy for Natural Resource Development in Northwestern Ontario 
Recipient: Sioux Lookout Friendship Accord (SLFA) 
Location: Sioux Lookout, Ontario
Funding amount: $931,500 
Description: This project will develop a clear and consistent approach to Indigenous engagement between First Nations and industry partners in northwestern Ontario. Using the Green Technology Metals lithium project in Slate Falls Nation as a case study, the project aims to increase participation, support timely project approvals and help First Nations benefit more fully from resource development in the region.

Project name: North Shore Mi'kmaq Tribal Council (NSMTC) Critical Minerals Assessment and Feasibility Study 
Recipient: North Shore Mi’kmaq Tribal Council 
Location: Eel Ground, New Brunswick
Funding amount: $929,660 
Description: This project will work with NSMTC member First Nations, other Indigenous groups in New Brunswick and expert partners to assess opportunities for Indigenous participation in existing and proposed mining projects across the province. The project will gather and organize information on mineral resources, planned projects and industry and government partners and will assess Indigenous interest, economic benefits and workforce opportunities related to critical minerals development. This project will inform a feasibility study that identifies practical ways Indigenous communities in New Brunswick can participate in and benefit from the mining sector.

Project name: Indigenous Methodologies for Responsible Critical Minerals Participation
Recipient: Salish Sea Indigenous Guardians Association (SSIGA)
Location: Osoyoos, British Columbia
Funding amount: $900,000 
Description: This project aims to begin the establishment of a centralized critical minerals department within the nation to effectively review and assess all proposals and operations within the territory based on Osoyoos Indian Band (OIB) criteria and priorities, and, where appropriate participate in economic development. The project expands upon First Nations-driven programs and resources built by SSIGA regarding direct impact assessment and community monitoring.

Critical Minerals Geoscience and Data Initiative

The Critical Minerals Geoscience and Data (CMGD) initiative supports the sustainable development of six priority minerals (cobalt, copper, graphite, lithium, nickel and rare earth elements) that are essential to key industries and national security (e.g. batteries, energy, defence, infrastructure).

Project name: Critical Mineral Potential of the Maritimes Basin in Eastern New Brunswick 
Recipient: New Brunswick Geological Survey 
Location: Grand Lake Region, New Brunswick
Funding amount: $232,600  
Description: This project will study the potential of the Maritimes Basin and surrounding rocks to host critical minerals such as copper, zinc, lithium and rare earth elements. The work will combine field mapping and laboratory testing of sediment samples to identify areas with higher mineral potential, map older underlying rock formations and assess potential additional mineral deposits in the region.

Project name: Geochronology and Petrogenesis of Granitoids and Related Critical Mineral Systems in New Brunswick 
Recipient: New Brunswick Geological Survey 
Location: Fredericton, New Brunswick
Funding amount: $172,000 
Description: This project will refine regional exploration models, support future mineral discoveries and strengthen mineral potential mapping activities in New Brunswick for critical minerals, including lithium, copper, tungsten and zinc.

Project name: The Future of Nova Scotia’s Geoscience Documents 
Recipient: Nova Scotia Department of Natural Resources 
Location: Halifax, Nova Scotia
Funding amount: $250,000  
Description: This project will digitize more than 9,000 mineral exploration reports and related NovaScan documents in Nova Scotia, making geoscience information easier to access and analyze, supporting the use of artificial intelligence and machine learning in mineral exploration, and strengthening provincial datasets used for mineral potential mapping.

Project name: Graphite in Support of Battery Value Chains 
Recipient: Nova Scotia Department of Natural Resources
Location: Halifax, Nova Scotia
Funding amount: $97,000  
Description: This project will examine Nova Scotia’s graphite resources, with a focus on flake graphite, to help assess how local supplies can support downstream uses such as batteries. The project will study known graphite sites across the province using geological mapping, three‑dimensional modelling and laboratory analysis to identify the most promising areas for future exploration and development.

Project name: Saskatchewan Regional Till Geochemistry Project 
Recipient: Saskatchewan Geological Survey 
Location: Regina, Saskatchewan
Funding amount: $250,000 
Description: This project will generate new data to understand the critical mineral potential of northern Saskatchewan’s Canadian Shield. Through re-analysis of archival samples, the project will add new critical mineral data and expand current datasets to guide exploration and generate potential economic benefits for Saskatchewan’s northern communities.

Project name: Newfoundland and Labrador Hyperspectral Drill Core Scanning 
Recipient: Geological Survey of Newfoundland and Labrador
Location: St. John’s, Newfoundland
Funding amount: $500,000 
Description: This project has been conditionally approved, pending final due diligence, and will use a modern hyperspectral scanning system to collect detailed data and images from key critical mineral-bearing drill core suites from the Newfoundland and Labrador core library. The automated scanning will create publicly available datasets that improve geological understanding, reduce exploration risk and make better use of existing drill core.

Project name: Critical Mineral Potential of the Nain Plutonic Suite: Data to Advance Predictive Modeling in Labrador 
Recipient: Geological Survey of Newfoundland and Labrador 
Location: St. John’s, Newfoundland
Funding amount: $500,000 
Description: This project has been conditionally approved, pending final due diligence, and will generate new data and knowledge on the geology and critical mineral potential of the Nain Plutonic Suite by combining predictive mapping with new data collection.