Canada is deploying C$3.5 billion ($2.6 billion) to accelerate critical minerals development, with Energy Minister Tim Hodgson detailing infrastructure investments on Tuesday. The package includes C$44 million for upgrades to the Northwest Transmission Line in British Columbia to support Newmont Corp.'s Red Chris copper mine expansion and C$50 million for BC Hydro transmission improvements for Teck Resources Ltd.

These projects are part of C$165 million in government investments aimed at speeding up mine planning and processing capacity. The minister also launched the C$1.5 billion First and Last Mile Fund, announced in Prime Minister Mark Carney's November budget, to build roads and transmission lines that will bring mineral deposits into production faster. Additionally, the C$2 billion Critical Minerals Sovereign Fund will begin operating soon, allowing the federal government to take equity stakes and offer loan guarantees.

Canada aims to position itself as a reliable alternative to China for critical minerals used in smartphones, laptops, and data centers. However, the country faces obstacles including remote deposits with limited infrastructure, lengthy environmental and Indigenous consultation requirements, and intense global competition for capital.