Canada rallying G7 countries around a new critical mineral alliance
Minister of Energy and Natural Resources Tim Hodgson announced an investment of $22 million to fund domestic battery innovation and manufacturing in Montreal, on Friday, Oct. 3, 2025. THE CANADIAN PRESS/Christinne Muschi
Written by: Mike Le Couteur
Source: CTV News
Energy Minister Tim Hodgson is set to announce a new alliance to secure critical minerals for G7 countries, a source told CTV News.
The goal of the alliance is to “secure transparent, democratic, and environmentally responsible critical minerals for G7 partners,” according to the source who spoke on background. They described it as a central outcome of Canada’s G7 strategy.
In a keynote address to the International Energy Agency, Hodgson described the moment as a turning point. “Energy markets are being reshaped by geopolitical conflict, technological revolutions and an accelerating drive towards net-zero,” said Hodgson.
While noting that citizens of every country need secure, affordable access to energy, Hodgson also said investors want clarity and confidence to deploy capital.
“We are working with our provinces and territories, our Indigenous partners, utilities and regulators to cut timelines without cutting corners,” he said.
“Creating an environment of regulatory certainty, which requires predictable policies, faster timelines and reliable permitting,” is one of the three levers the federal government is focusing on, Hodgson told the audience.
Public funding for CO2 removal
The federal government is also using public money to back industrial decarbonization, like a newly announced offtake agreement between Microsoft and industrial mineralization company Arca. The latter industrial mineralization company uses alkaline industrial waste to remove CO₂ from the atmosphere and transform it into rock.
The newly announced agreement will deliver “nearly 300,000 tonnes of durable carbon dioxide removal (CDR) over 10 years,” Vancouver-based Arca wrote in a news release.
“We repurpose the mine waste from critical metal mining, and turn that into a large-scale carbon sink,” said Arca CEO Paul Needham.
Minister Hodgson described carbon dioxide removal technologies as a critical piece to the net-zero puzzle, adding they “allow us to tackle the hardest to abate emissions.”
In addition to the Arca project, NorthX Climate Tech announced it is investing $3.4 million in four Canadian carbon removal ventures.
In May, NorthX changed its name from the BC Centre for Innovation and Clean Energy (CICE). Launched in 2021, it was backed by the federal government and British Columbia in partnership with Shell Canada.
Both governments and Shell Canada each provided $35 million in funding towards the creation of the CICE. NorthX Chief Operating Officer Todd Sayers told reporters that in the last four years, his company has invested $45 million in over 70 projects, creating 870 Canadian jobs.
“So that means for every dollar that the Government of Canada has invested in NorthX, we’ve generated more than $30 in economic activity,” said Sayers.
Minister Hodgson also announced that Montreal will host the 11th International Energy Agency conference on energy efficiency.
“Efficiency, often called the first fuel, is the fastest, cheapest way to cut emissions while boosting growth,” said the federal energy and natural resources minister. “Every unit we save strengthens competitiveness, lowers bills and eases pressures on grids.”