US Presses Canada for Deeper Critical Minerals Cooperation With Ultimatum Over Slow Progress

Published on: Jun 5, 2026

Author: Sunlight Xiang

 
 
 

U.S. Ambassador to Canada Pete Hoekstra has put forward an all-round cooperation initiative centered on critical minerals during a mining investment summit in Quebec City. In a panel discussion with Anthony Vaccaro, president of The Northern Miner Group, Hoekstra proposed deepening bilateral collaboration across critical mineral exploration, deep processing, energy infrastructure, advanced manufacturing, defence industry and Arctic resource development. He stressed that the two countries should leverage Canada’s unique resource advantages to build an integrated North American “economic fortress” and consolidate the region’s defence industrial foundation.

Hoekstra cited the decades-long successful operation of the North American Aerospace Defense Command (NORAD) as a mature template for bilateral strategic cooperation. He noted that the U.S. and Canada have built solid industrial cooperation foundations in automotive, steel and traditional energy sectors. Endowed with 34 categories of domestic critical minerals, Canada boasts top-five global reserves of niobium, potash, tellurium, titanium and uranium. Its exclusive experience in developing resource projects with Indigenous communities further cements its status as Washington’s preferred critical mineral supplier.

Alongside the cooperation proposal, Hoekstra delivered an assertive, high-pressure stance targeting Canada’s passive attitude. He revealed that Canada absented itself from the U.S.-hosted global ministerial-level critical minerals meeting and submitted few cooperation project proposals. In stark contrast, U.S. allies including Australia actively rolled out numerous feasible cooperation plans. The ambassador made it clear that though the U.S. plans to fund and launch Canadian mining projects via Defense Production Act programs, it will not wait indefinitely for Canada to align with U.S.-led strategic frameworks. He warned that the U.S. will promptly turn to Australia, South American countries and other partners to diversify its mineral supply chain if Canada fails to accelerate cooperation progress.

The bilateral cooperation has long been underpinned by complete institutional arrangements. As early as 2020, the two countries signed the Joint Action Plan on Critical Minerals Collaboration, laying a systematic foundation for cross-border industrial investment. To boost supply chain security, the U.S. has allocated over $250 million in special funds for allied mineral projects for 2024–2025 under the Defense Production Act. Meanwhile, Canada has launched its national Critical Minerals Strategy, supported by C$3.8 billion in dedicated funding to drive domestic resource industrialization.

Progress, Bottlenecks and Strategic Dynamics of US-Canada Critical Minerals Partnership

Driven by bilateral institutional mechanisms, the U.S. and Canada have achieved tangible progress in substantive investment cooperation. The two sides have jointly injected approximately $32.5 million into Canada’s strategic mineral projects, covering high-value resources such as bismuth, cobalt and graphite that serve new energy and defence industrial needs. Representative projects include Fortune Minerals’ bismuth and cobalt development scheme and Lomiko Metals’ graphite project, marking the steady landing of cross-border industrial collaboration.

Canada possesses enormous development potential in the critical minerals sector, with 67 lithium, nickel, rare earth and graphite projects currently under planning or construction, requiring a total investment of $72.4 billion by 2034. The country has also signed more than 30 international mineral cooperation agreements, unlocking $12.1 billion in mining project capital. Nevertheless, the sector faces prominent implementation bottlenecks. Most institutional agreements cannot be efficiently translated into operational mines and refining capacity, leading to slow project delivery and sluggish industrial transformation.

The U.S.-Canada critical minerals partnership features distinct strategic complementarity. For Canada, the cooperation is a key opportunity to absorb U.S. capital and tap into international markets, activating idle mineral resources and striving to become a core critical mineral supplier for Western economies. For the United States, deepening cooperation with Canada helps build a localized North American mineral supply chain, effectively hedging geopolitical risks arising from overreliance on overseas mineral sources and safeguarding domestic industrial and resource security.

Despite solid cooperation foundations and clear strategic value, bilateral interest contradictions have brought great uncertainty to future collaboration. The U.S. focuses on quickly obtaining stable mineral supplies and advancing regional industrial localization, with sufficient alternative global cooperation resources in reserve. In comparison, Canada aims to cultivate independent domestic deep-processing industries through cross-border cooperation, rather than becoming a mere raw material exporter. The conflicting core interests, coupled with the U.S.’s tough and opportunistic stance, mean that the follow-up advancement of US-Canada critical minerals cooperation will continue to face challenges and volatility.