DEVELOPMENTS IN BATTERY RECYCLING - 06 Canada and the Critical Minerals Strategy

In the previous section of our series, we referred to a strategy report published by the Canadian government in 2021. Since this report is publicly available, examining its details presents no issue. The report includes forewords from two ministries: the Ministry of Natural Resources, as expected, and the Ministry of Innovation, Science, and Industry. The inclusion of both ministries in the foreword signifies that the Canadian government views critical minerals not just as raw materials mined from underground but also as integral to industrial advancements.

Understanding the Canadian government's strategy is essential because their action plan has already yielded rapid results. A report published by BloombergNEF at the beginning of 2024 highlighted a remarkable development: as of the end of 2023, Canada had overtaken China in the global supply chain competitiveness ranking for critical minerals used in electric vehicles. This is a significant shift, as China’s dominance has often been attributed to its early efforts in controlling resources rather than advancing technology. Consequently, it seems likely that in the coming years, other countries besides Canada could also surpass Asian nations in critical mineral technologies and supply chain capabilities.

To understand how Canada achieved this success, examining the measures outlined in their 2021 Critical Minerals Strategy is crucial. The strategy encompasses detailed plans spanning the entire value chain, from mineral exploration and ore processing to producing refined industrial materials and manufacturing batteries and electric vehicles. The following are the key government support initiatives identified within the strategy:

1. Support for Technology Development

• $79.2 million allocated to public geology and research for better defining and assessing mineral deposits.
• A 30% Critical Minerals Exploration Tax Credit targeting specific critical minerals.
• $47.7 million for upstream critical mineral R&D through Canada's research laboratories.
• $144.4 million for deploying technologies and materials to support critical mineral development across upstream and midstream value chain segments.

2. Support for Responsible Project Development

• $1.5 billion under the Strategic Innovation Fund (SIF) for critical mineral projects, prioritizing advanced manufacturing, processing, and recycling applications.
• $40 million to support regulatory processes in Northern regions for reviewing and permitting critical mineral projects.
• $21.5 million to establish the Critical Minerals Centre of Excellence (CMCE), which assists project developers in navigating regulatory processes and federal support measures.

The Canadian Critical Minerals Strategy Annual Report 2024 reviews the progress made over three years and outlines the next steps. While our series focuses on recycling, it is worth noting the importance and impact of a well-defined strategic document in achieving such outcomes. Those interested can refer to the report via the provided link for further details.

The report confirms that Canada’s strategy has placed it ahead of China in supplying critical minerals for EV batteries. However, it also notes that the outcomes in recycling have not yet reached the same level of success as other areas. Parallel to our earlier observations, the report states that public and private sector entities continue to develop technologies to recover value from both manufacturing and ore waste. This holistic approach to utilizing local resources aligns with the concept of economic self-sufficiency while also reducing greenhouse gas emissions by minimizing reliance on imports. Hence, the importance of establishing a robust recycling sector within the evolving economic cycle is reiterated.