Canadian government steps up investment in critical minerals
While various parties around the world have decided to cut back on their spending on critical mineral exploration and development, Canada’s government has chosen to make significant investments in commodities such as lithium and rare earths.
The provinces of Saskatchewan and Alberta, in particular, have received substantial cash injections.
The government has identified 34 critical minerals—27 of which can be found in Saskatchewan, where mineral exploration expenditures hit a 10-year high in 2023.
Clean energy economy
As part of its plans to expand exploration in Saskatchewan, Canada’s Minister of Energy and Natural Resources Jonathan Wilkinson met this week with indigenous leaders and key stakeholders in the province’s business, labour and academic communities to initiate an engagement process to further critical mineral development.
Mr Wilkinson also revealed that the government is making a major investment in advancing a clean economy for Saskatchewan.
This includes around $31.8 million (C$29 million) to the Saskatchewan Research Council to process rare earth elements in Canada for the first time.
SMR development
Among the ten clean energy projects to be supported is $81.3 million (C$74 million) in federal funding for nuclear small modular reactor (SMR) development in Saskatchewan, to be led by SaskPower.
The government is also making a $55 million (C$50 million) investment in the Bekevar Wind Power project in partnership with the Cowessess First Nation.
The minister stated that the potential economic opportunities associated with the transition to a low-carbon economy are enormous for Saskatchewan.
According to Clean Energy Canada, Saskatchewan is projected to see some of the most significant growth rates in clean energy employment by 2050—about 131,000 new jobs.
E3 Lithium boost
Meanwhile, E3 Lithium (TSXV: ETL) is to receive around $5.5 million (C$5 million) in support from the Alberta government.
The funds will support the company’s integrated lithium brine demonstration facility.
E3 Lithium is constructing the demonstration project at an increased scale that will allow for the operation of a fully integrated process, helping achieve the company’s goal of producing battery-grade lithium carbonate from locally sourced brines in Alberta.
Plentiful reserves
“There is a critical minerals race happening worldwide and, with investments like this one, Alberta is leading,” said the province’s Minister of Environment and Protected Areas, Rebecca Schulz.
“We are tapping into our province’s plentiful brine reserves, well-documented drill sites and talented oil and gas workforce to help E3 Lithium bring its technology closer to commercialisation, setting the stage for Alberta to become a global leader in lithium production while stimulating investment and creating jobs here at home.”
Critical funding
E3 Lithium president Chris Doornbos said the funding is crucial for developing a commercial facility and producing battery-grade lithium.
“This investment not only supports E3 but also opens new opportunities for the province and positions Alberta as a leader in critical minerals innovation.”
The six-month demonstration project aims to purify, concentrate and chemically convert brine into battery-grade lithium carbonate, with additional hydroxide developments conducted offsite.