The Canadian Government has signalled a stronger commitment to clean energy, investment, and critical minerals through a nearly C$70 billion ($71 billion) package it describes as the largest clean energy investment in North American history.
Prime Minister Mark Carney, Québec Premier Christine Fréchette, Newfoundland and Labrador Premier Tony Wakeham, and the CEOs of Hydro-Québec and Newfoundland and Labrador Hydro announced agreements to expand the Churchill Falls Generating Station and develop the Gull Island project, creating one of North America’s largest electricity developments.
These projects are expected to generate 14,000 megawatts of clean, renewable power — enough to power, light, heat, and cool every home in Toronto, Montréal, and Vancouver combined. They are also forecast to support 23,000 jobs and contribute around C$31 billion to the country’s gross domestic product through the early 2040s.
Carney says that Canada is starting from a position of strength.
“We have what the world wants. We have the natural resources, critical minerals, and clean power that will build this century,” he says.
“By combining the Clean Economy Investment Tax Credits, efficient project approvals, cooperation agreements with provinces and territories, strategic investments, and attractive financing, we are giving builders the certainty to build big and move fast.”
This week’s announcement predominantly focuses on pre-development projects across Newfoundland and Labrador and Québec. It also includes strategic financing for the Labrador Trough region through Natural Resources Canada’s First and Last Mile Fund (FLMF).
Backed by C$1.5 billion, the FLMF will operate until 2030 and support strategic mining and infrastructure required to develop Canada’s critical minerals supply chains.
The fund supports critical minerals mines and upstream and midstream supply chains, as well as Indigenous engagement, participation, and capacity building.
Aside from infrastructure funding, Canada also supports early-stage exploration through the 30% Critical Mineral Exploration Tax Credit, which applies to projects like lithium, nickel, copper, and other critical minerals.
Canada’s clean energy and infrastructure commitments are historic, but bridging the looming critical minerals supply gaps will require far greater upstream exploration financing.
While initiatives such as the FLMF and the exploration tax credits provide support, the scale of anticipated demand across critical minerals continues to outpace available funding. Many federal and provincial programs focus on later-stage projects and enabling infrastructure, while early-stage exploration remains comparatively underserved. Without expanded exploration budgets, Canada risks creating bottlenecks in its supply chains.
Exploration projects abound across Canada, with no shortage of companies progressing assets that could help expand North America’s critical minerals supply.
Exploration remains the first step in securing the minerals on which downstream projects depend. Despite tax credits and targeted funds, early-stage companies continue to face capital constraints. Junior exploration companies will help determine whether Canada can meet its supply chain goals and position itself as a global leader in responsibly produced critical minerals.
Canadian juniors push critical minerals frontier
Atlantic Canada is experiencing a mining renaissance, with a particular focus on critical minerals.
In New Brunswick, Albright Metals (ASX:ABR) is advancing the Golden Pike Gold and Antimony Project in a relatively underexplored region.
Albright completed its second payment milestone for the project in late June 2026, as reported, with CEO Greg Hill describing the payment as a clear signal of the company’s confidence in advancing the asset.
The Golden Pike Project includes the Vail Road deposit and the Bond Road and Albright Brooke antimony prospects.
In Québec, Brunswick Exploration (TSX-V:BRW) is conducting a 6,000m of drilling across the Mirage and Anatacau Main projects.
Brunswick Exploration is testing previously undrilled spodumene pegmatite outcrops and new targets along an 8km-long lithium-bearing corridor.
CEO Killian Charles describes Mirage, which has an inferred resource of 52.2 million tonnes @ 1.08% lithium oxide, as “one of the most important lithium assets in Canada”. Brunswick believes Anatacau has the potential to become similarly significant.
Across Ontario and the Northwest Territories, Avalon Advanced Materials (TSX:AVL) is focused on building domestic Canadian capacity in rare earths and lithium.
Avalon describes its Nechalacho Project in the Northwest Territories as one of the ‘most advanced’ rare earth deposits in North America, with the potential to supply magnet rare earth elements (REEs) and other critical minerals.
The company is updating the project’s 2013 Definitive Feasibility Study to what it says will be a cleaner and more cost-efficient processing method and updated economics.
Avalon has recovered 15 REEs from Nechalacho at rates exceeding 90% using a processing method developed in collaboration with Engina Corporation.
The company’s Lake Superior Lithium Project is also completing a Feasibility Study to advance from a positive September 2024 Preliminary Economic Assessment as Avalon prepares the development for construction.
The project comprises a chemical processing facility designed to convert spodumene concentrate into battery-grade lithium chemicals, helping address Canada’s demand for midstream processing capacity.
Write to Amy Rotman at Mining.com.au
Images: Avalon Advanced Materials, Albright Metals
