The Canadian Forum for Financial Markets (CFFiM)/Forum Canadien des Marchés Financiers (FCMFi) has encouraged the federal government to adopt a stand-alone rare earth strategy that contains a roadmap for mining, processing, refining, and downstream applications.
“Canada needs a stand-alone, Canada-first rare earth strategy, separate from the broader Canadian Critical Minerals Strategy,” said Laura Paglia, CFFiM president and chief executive officer, in a news release. “Such a strategy would recognize the extraordinary leverage and strategic influence these elements offer and the unique dynamics that set them apart from other critical minerals.”
In its news release, CFFiM highlighted the country’s expansive reserves of critical minerals – including copper, nickel, potash, and uranium – as well as abundant resources and reserves of rare earth elements, a subset of valuable inputs that fall within the category of critical minerals.
CFFiM stressed that the world’s race to secure reliable supplies has focused on the rare earth supply. CFFiM noted that Australia and the US have acted swiftly to decrease dependence on China and influence the rare earth market both strategically and economically.
“In the global race for rare earths, ambition and visibility matter,” Paglia said in the news release.
CFFiM lamented Canada’s slower progress in this area, which has risked missing out on meaningful economic opportunities linked with the rare earths sector.
Recommendations
CFFiM noted the Canadian government’s crucial role in de-risking projects to draw in private investment. In its news release, CFFiM urged the federal government to:
- Facilitate offtake agreements focusing on a diverse strategic customers – including the US Department of Defense, renewable energy developers, and key major players in electric vehicle (EV) battery and motor supply chains – as well as targeting broader commercial markets like original equipment manufacturers (OEMs), consumer electronics brands, magnet producers, and industrial and automation companies
- Impose price stabilization mechanisms, with price floors and contracts for difference considered for critical rare earths
- Offer upstream tax incentives
- Prioritize and expedite permitting for rare earth projects deemed essential for national security, clean technology, or high-tech industries
- Take advantage of the critical minerals sovereign fund, included in the federal budget announced this month, to prioritize rare earth projects
- Secure focused and strategic support by expressly outlining the eligible value chain stages, namely mining, separation, refining, and recycling
- Invest in roads, ports, energy, water, and waste management infrastructure to improve project viability
- Ensure timely, meaningful, and sustained consultation and equitable benefit-sharing agreements with Indigenous communities
“Together, these measures would materially de-risk projects, accelerate supply chain development, and strengthen Canada's competitive position in the global rare earth market,” Paglia said in CFFiM’s news release.
CFFiM/FCMFi, the national association acting for investment firms that offer products and services to Canadian retail and institutional investors, aims to advance proposals promoting healthy and competitive financial markets and a strong and resilient economy for the benefit of all Canadians.