Canada possesses some of the largest rare earth deposits on the planet, yet the nation has failed to mine any of these minerals over the last two years. This lack of development threatens Prime Minister Mark Carney's goal of establishing Canada as a global leader in critical minerals, according to a new report from the Macdonald-Laurier Institute.

The rare earth minerals gap

Rare earth minerals, such as terbium and neodymium, are essential components for high-tech manufacturing. They are used to create powerful magnets for wind turbines, electric vehicles, and advanced weapons systems. While Canada's identified rare earth resources exceed 14 million tonnes, its actual production has remained at zero.

In contrast, other nations are actively scaling their output:

  • China mined 270,000 tonnes in 2025.
  • The United States mined 51,000 tonnes in the same period.
  • The U.S. holds significantly fewer identified resources at 3.6 million tonnes.

Underdeveloped resource potential

While Canada is a dominant player in the potash and uranium markets, its performance in other critical sectors remains low. The Benchmark Canada project highlights a consistent trend where the country's mineral reserves do not match its actual industrial output.

For example, Canada's share of global lithium reserves stands at 4.3 per cent, yet it contributes only 1.9 per cent of worldwide production. Similarly, the country accounts for 1.9 per cent of global graphite reserves but produces a mere 0.44 per cent of the total. John Steen of the University of British Columbia noted that while Canada is a potential provider as supply chains reorganize, "there's a long, long way to go."

What happens next?

As Canada and its allies attempt to reduce reliance on Chinese supply chains, the pressure to develop domestic mining projects will likely increase. The ability to bridge the gap between having resources in the ground and bringing them to market will be a key metric for Canada's economic security.

FAQ

Why are rare earth minerals important?

They are vital for producing modern technology, including smartphones, electric vehicle motors, and green energy infrastructure.

How does Canada compare to the U.S. in resources?

Canada's identified rare earth resources are much larger than those of the United States, with 14 million tonnes compared to 3.6 million tonnes.