Canadian Government Invests to Boost Critical Minerals Supply Chain in Quebec

Canadian Government Invests to Boost Critical Minerals Supply Chain in Quebec

Emilia Jackson 06-Oct-2025

This funding, part of a larger $80.3-million federal initiative, aims to strengthen Canada's critical minerals sector, following commitments made at the 2025 G7 Summit.

The federal government is taking a decisive step to fortify Canada’s critical minerals supply chain with a direct investment into a Quebec-based project crucial for the burgeoning clean energy sector. On Friday, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced the conditional approval of up to $735,000 for Arianne Phosphate Inc. through the Critical Minerals Research, Development and Demonstration (CMRDD) program.

The $80.3 million G7 announcement includes $50.3 million specifically to support domestic R&D initiatives, strengthen global supply chains, and enhance the ability to respond to market disruptions, ensuring a robust and self-reliant critical minerals ecosystem for Canada's future.

This significant financial backing is earmarked to support Arianne Phosphate’s work in optimizing the phosphoric acid purification process from its Lac à Paul deposit. The successful commercialization of this project promises to establish a secure, Canadian source of phosphorus, a critical mineral essential for the production of lithium-iron-phosphate (LFP) batteries—a key component in electric vehicles and energy storage solutions—as well as for fertilizers and other specialty chemical products.

The investment is a component of a larger $80.3-million initiative unveiled by Prime Minister Mark Carney at the 2025 G7 Leaders’ Summit in Kananaskis, Alberta, specifically dedicated to building resilient critical minerals supply chains across the country.

Minister Hodgson underscored the strategic importance of the investment, linking it directly to Canada's role in the global shift towards cleaner technologies. “By investing in projects like Arianne Phosphate’s Technology Centre, we are strengthening Canada’s leadership in critical minerals and building a cleaner, more secure future — furthering the goals spelled out at the G7 in Kananaskis,” stated Minister Hodgson. He emphasized that the move not only supports innovation, supply chain security, and good jobs but also ensures the country is “leveraging our natural resources to stay at the forefront of the global shift to clean technologies.”

Phosphorus, recognized as a critical mineral in 2024, is one of the "essential building blocks" necessary for the technologies driving the global economic and industrial transition.

Marco Gagnon, Executive Chairman of Arianne Phosphate Inc., welcomed the government’s support, noting its pivotal role in advancing the Lac à Paul project. “The Government of Canada’s support of Arianne allows us to move forward the development of our Lac à Paul project to the benefit of the country, our stakeholders and our shareholders,” Gagnon stated. He further affirmed that the advancement of the project is a direct contribution to the government’s vision of making Canada a leader in critical minerals.

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