A Plan to Grow Our Economy and Make Life More Affordable, the Government of Canada is making targeted and responsible investments to create good jobs, fight climate change, and build a stronger economic future for all Canadians.
Today, the Minister of Transport, the Honourable Omar Alghabra, announced investments to enhance Canadian mining industry's ability to provide the minerals and metals required to reach net-zero emissions by 2050.
Facing the challenges of climate change, technological change, and a changing global economy, Canada's economic success requires focused and concerted action. The Canada Growth Fund will be a new public investment vehicle that will operate at arms-length from the federal government. The fund will initially be capitalized at $15 billion over the next five years and will help attract substantial private sector investment to help meet important national economic policy goals.
Budget 2022 has also proposed significant investments, while working closely with affected Indigenous groups, to contribute to the development of a domestic zero-emissions vehicle chain. These investments will secure Canada's place in important supply chains with other countries and implement a just and sustainable Critical Minerals Strategy.
In total, Budget 2022 proposes to provide up to $3.8 billion in support over eight years starting in 2022-23, to implement Canada's first Critical Minerals Strategy. The Budget would:
- commit $80 million to public geoscience and exploration programs to help find the next generation of critical minerals deposits.
- double the Mineral Exploration Tax Credit for targeted critical minerals, including nickel, copper, cobalt, rare earths elements and uranium.
- dedicates $1.5 billion for new infrastructure investments to unlock new mineral projects in critical regions, such as the Ring of Fire.
- allocate $1.5 billion to invest in new critical minerals projects, with a priority focus on mineral processing, materials manufacturing and recycling for key mineral and metal products in the battery and rare earths elements supply chain.
- allocate $144 million to critical minerals research and development to support the responsible extraction and processing of critical minerals.
- renew the Centre of Excellence on Critical Minerals for three more years with an allocation of $10 million.
- add $40 million to support northern regulatory processes in reviewing and permitting critical minerals projects.
- invests $70 million for global partnerships to promote Canadian mining leadership.
Budget 2022 also proposes significant funding to make Canada a more attractive destination for critical minerals investment and to secure valuable agreements that would increase production of goods like electric vehicles and batteries. It proposes to:
- provide up to $1 billion over six years, starting in 2024-25, for the Strategic Innovation Fund.
- provide $1.5 billion that will support critical minerals projects, with prioritization given to manufacturing, processing, and recycling applications.
- support innovative projects through the Strategic Innovation Fund, which will complement other proposed investments in the sector, including a proposed $1.5 billion investment in infrastructure.
- explore potential opportunities to support the growth of the solar panel industry through these investments.
