Canada supplies 21 types of processed critical minerals to the United States, according to data from the Aerospace Industries Association (AIA), based in Arlington, Virginia.

Overall, the United States has several trade agreements with partners that are major suppliers of processed critical minerals. It relies on these minerals for more than 50% of its imports. 

Processed Critical Minerals from Canada

Canada processes critical minerals essential for batteries, semiconductors, and clean technologies. These include lithium, nickel, cobalt, copper, graphite, and rare earth elements, as well as gallium, germanium, and indium. The country is strengthening its refining capacity to reduce external dependencies and secure strategic supply chains.

In particular, the United States-Mexico-Canada Agreement (USMCA) has facilitated access to Canadian sources of critical minerals. These agreements are crucial for U.S. companies. Canada supplies 21 of these minerals, on which the country relies heavily for imports. In addition, other partners, such as Japan, have increased their capacity to process and refine critical minerals and derived products.

International Cooperation

On May 28 in New York, Canadian Prime Minister Mark Carney announced that Canada has signed 56 agreements on critical minerals with more than 10 countries. This has attracted more than $18 billion in capital. At the same time, these investments have enabled Canada to reduce its dependence on foreign monopolies in critical supply chains.

For the AIA, an organization with nearly 300 member companies, the use of bilateral and sectoral plurilateral agreements promotes fair and reliable access to global markets. It is also essential for strengthening the resilience of the U.S. supply chain. At the same time, it promotes U.S. competitiveness through balanced and reciprocal trade. 

Given that the United States continues to face domestic supply and processing constraints, cooperation with trusted foreign markets is essential. This helps maintain and strengthen access to critical minerals.

Geopolitics

In the realm of national security and the energy transition, Canada is strategically positioning itself as the indispensable partner for U.S. “friendshoring.” 

Faced with China’s oligopolistic control over global supply chains, Canada is stepping up to mitigate Washington’s systemic vulnerability, offering its vast reserves of critical minerals as a geoeconomic shield to ensure North America’s technological and military autonomy.