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Digging deep: US military buys into Canadian mining

May 30, 2024
David Moscrop
President Joe Biden hosts a virtual roundtable on securing critical minerals at the White House in Washington, U.S., February 22, 2022.
President Joe Biden hosts a virtual roundtable on securing critical minerals at the White House in Washington, U.S., February 22, 2022.
REUTERS/Kevin Lamarque

The US military is sinking nearly $15 million into the Canadian mining sector through the Defense Production Act in what is believed to be the first time in the DPA’s 74-year history that the US has used such funds outside the country.

Why? Both Canada and the US have gone all-in on critical minerals in recent years amid growing tensions and anxiety over China and its control of strategic supply chains.

The joint investment with the Canadian government, part of the US-Canadian Joint Action Plan on Critical Minerals, covers projects for critical minerals essential to key industries including energy, communications, and defense. These include copper, gold, graphite, and cobalt in Quebec and the Northwest Territories.

For its part, China is watching closely – while still investing its own capital into the Canadian mining sector.

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