Canada Could Add $70 Billion Annually by Processing Critical Minerals Domestically

Export Development Canada (EDC) has estimated that processing critical minerals domestically could add C$98 billion annually to Canada's economy by 2035. This is according to a report released by the government trade promotion agency, which warns that shipping raw commodities overseas in unprocessed form can lead companies to forgo significant earnings.

The report highlights the gap between extracting critical minerals and creating value from them through processing and manufacturing. Canadian firms are increasingly progressing beyond extraction towards refining products for electric vehicles, advanced manufacturing, digital technology, and defence. For instance, mining rare earths, graphite, and lithium can be upgraded to higher-value products such as electric vehicle batteries.

EDC identified uranium as another area with potential for increased domestic value generation. While mining provides the raw material, greater value exists downstream in nuclear fuel, reactor components, control systems, and services. The agency also noted that copper exhibits a similar pattern, with Canada potentially advancing from mined metal into specialty conductors, transformer components, and equipment for power grids, data centers, and artificial intelligence infrastructure.