Canada’s Critical-Mineral Strategy Intends to Accelerate Permitting

Ottawa: Canada unveiled a new strategy on Friday to increase the production and processing of critical minerals vital to power electric vehicle (EV) batteries, according to the strategy paper seen by Reuters.

The government vows to review the permitting process with an eye on cutting the time required to bring mines online by avoiding duplication and ensuring early indigenous consultation and engagement, the 58-page document said. It did not say when the review would be completed. Companies will be offered help in applying for permits and government support through the Critical Minerals Centre of Excellence, the strategy says. The office is already operating with a team of about 15 people, said a senior government source.

Critical minerals are key components in EV batteries, electronics, and solar panels and play a crucial role in the transition to the green economy. While Canada is home to of some the largest deposits of critical minerals, it can take anywhere between five and 25 years for a mining project to become operational, the document said.

“We recognize that, although responsible regulations are vital, complex regulatory and permitting processes can hinder the economic competitiveness of the sector and increase investment risk for proponents,” the document reads.

As the world shifts to cleaner technologies to fight climate change, demand for them is expected to skyrocket. Many in the mining industry have said the bureaucracy is too slow and is holding up investment.

“What has been the tendency over many years is that the requirements just keep ballooning and you end up with impact assessment reports (for new mines) that are thousands of pages long,” said Pierre Gratton, president, and CEO of the Mining Association of Canada, adding that he welcomed a review of the permitting process.

“We’re not looking for yet another overhaul of the federal regime. We’re looking at opportunities to implement existing requirements more expeditiously… There are opportunities to speed things up,” he said.

China presently rules the market for critical minerals used in EV batteries. Countries like the United States, Canada, Australia, India, and Japan want to wean themselves from their dependence on authoritarian regimes for strategically important materials.

Canada signed a joint action plan with the United States in 2020 to advance secure supply chains for critical minerals. It has signed similar critical minerals cooperation agreements with Japan and the European Union.

“I’ve talked to the Americans more in the last few years than I had ever talked to them in my entire career, and also Europeans,” Gratton said. “Everyone wants a piece of Canada right now, and they keep knocking on our door.”

The new strategy sets priorities along the entire critical-mineral value chain, from exploration and mining to recycling old batteries, and it also covers the need for new infrastructure in often remote corners of the country. Ottawa will seek regulatory harmonization with the United States on critical minerals, the document reads without elaborating.

Ottawa’s strategy prioritizes the development of lithium, graphite, nickel, cobalt, copper, and rare earth elements. At the same time, Canada is offering 30% tax credits for the exploration of nickel, lithium, cobalt, graphite, copper, rare earth elements, vanadium, and uranium.

“This Strategy, backed by nearly C$4 billion ($2.95 billion) in the 2022 budget, sets out a course for Canada to become a global supplier of choice for critical minerals and the clean digital technologies they enable,” Natural Resources Minister Jonathan Wilkinson wrote in the document.

Wilkinson will hold a news conference later Friday to announce the strategy.