Mentioned:
The G7 is accelerating their plans for domestic sources of supply for both critical minerals and rare earths. And they’re putting up billions of dollars to do it.
What’s happening:
- The Critical Minerals Production Alliance has committed $6.4B CAD of funding for multiple critical minerals and rare earth companies through new offtake agreements and direct equity investments
Why it matters:
- The Critical Minerals Production Alliance is led by Canada and includes participation from all countries in the G7 in an effort to reduce global dependence on China as a source of supply for both critical minerals and rare earth elements
Going deeper:
- Multiple publicly traded companies were selected for offtake agreements and funding commitments, including Northern Graphite (TSXV: NGC), Nouveau Monde Graphite (NYSE: NMG) and Ucore Rare Metals (TSXV: UCU)
- The Canada Growth Fund will also make a $25M CAD equity investment into Rio Tinto's (NYSE: RIO) scandium plant located in Quebec
The intrigue:
- The federal government of Canada has notably invoked the Defense Production Act to begin stockpiling critical minerals and rare earth elements that are deemed to be essential for national security
