National Defence

This House of Commons National Defence committee meeting studied the nexus between critical minerals, national defence and national security. Appearing were Wendy Hadwen, Assistant Deputy Minister, Policy-Industry at the Department of National Defence; Isabella Chan, Senior Assistant Deputy Minister, Lands and Minerals Sector at the Department of Natural Resources; and Cristina Pekarik, an independent expert on economics and resource policy.

Wendy Hadwen stated that Canada’s critical minerals are an economic and industrial advantage, recognized in the defence industrial strategy, and that Canada is uniquely positioned as the supply chain itself. She noted that the strategy commits to securing domestic supply of key raw materials, and that Canada is leading a NATO initiative on stockpiling critical minerals for defence, with an MOU expected this year. She recommended leveraging Canada’s mineral advantage in sovereign capabilities such as quantum systems and space launch, and emphasized that allies are eager to partner on secure supply chains.

Isabella Chan explained that critical minerals are now a global priority due to concentrated supply chains and defence needs, and that Canada produces or has potential to produce all 12 minerals identified by NATO. She highlighted concrete steps including $1.5 billion in new funding, offtake agreements for scandium and graphite under the Defence Production Act, and work with allies through the G7 critical minerals production alliance. She disagreed with the implication that Canada has no stockpiles, noting that term sheets have been signed, and stressed that different minerals require different stockpiling approaches.

Cristina Pekarik argued that Canada’s critical minerals strategy was built for energy transition but now needs a purpose-built defence framework, with fiscal capacity as a key tool to finance the 5% GDP defence commitment. She recommended asking the Parliamentary Budget Officer to model a project pipeline to generate revenue, expediting regulatory timelines, closing foreign ownership gaps under the Investment Canada Act, and building indigenous partnerships. She disagreed with the suggestion that current efforts are sufficient, noting that Canada has no strategic mineral stockpiles and that execution timelines remain a binding constraint.

During questioning, members raised concerns about permitting delays, foreign ownership of mines such as Beaver Brook and Tanco, and the lack of actual stockpiles. Witnesses responded that regulatory equivalency agreements, the Major Projects Office, and the Investment Canada Act are being used to address these issues, though Pekarik noted that grandfathering clauses and sensitive sector definitions need reform. The committee briefly discussed procedural matters regarding interns staying for an in camera portion, with members agreeing to decide case by case.