The global demand for critical minerals has surged as a result of global commitments to net zero because of their indispensable role in modern technologies and renewable energy solutions. During the recent COP 28, the UN Secretary-General Antonio Guterres highlighted a forecasted 4x increase in the required mineral extraction by 2030, underscoring the urgency to secure robust supply chains. However, to avoid the re-occurrence of resource exploitation, Guterres noted “the extraction of critical minerals for the clean energy revolution – from wind farms to solar panels and battery manufacturing – must be done in a sustainable, fair and just way.”
With Canada’s abundance of critical minerals, the confluence of Indigenous leadership and Canada’s critical mineral supply unveils a collective advantage. It’s imperative to recognize that all existing and forthcoming critical mineral supplies within Canada are situated within the territories of Indigenous nations. Consequently, any successful endeavor in building out the critical mineral supply chain in Canada Indigenous ownership, partnership, and free, prior and informed consent across the entire value chain.
First Nations’ leadership on projects signifies is a competitive edge for Canada in fulfilling burgeoning supply chain demands. Canada stands uniquely poised to take steps toward Indigenous economic reconciliation and meeting the escalating global demand for battery minerals.
There is a growing interest from ESG (Environmental, Social, and Governance) investors to pay a ‘green premium’ for projects with Indigenous partnerships, underscoring the economic viability and ethical soundness of such collaborations. These factors, coupled with a stable governance structure, paint a compelling picture of Indigenous nations being strategic leaders and partners in Canada’s critical mineral supply chain.
The strategic advantages extend beyond the domestic realm, with implications on a global scale. In a landscape where state-owned projects, notably in China, dominate the supply chain narrative, the involvement of Indigenous nations in Canada offers a more credible alternative by presenting a source of minerals backed by ethical and sustainable practices. This distinction could attract conscientious consumers and investors seeking an alternative to larger state-run projects, thereby leveling the playing field while amplifying Canada’s global standing.
The integration of Indigenous values and knowledge systems within the supply chain brings better leadership and stewardship. This Indigenous approach not only ensures more responsible extraction of critical minerals but also fosters a better chance of long-term environmental and social harmony within these regions.
Yet questions remain: How do all parties involved identify, define, and respectfully centre Indigenous values and partnership in a critical mineral project? Issues such as capital access, permitting and regulatory risk, deal structures, Indigenous commercial governance, and shared traditional territory, tend to delay projects
Join us next April to learn how these partnerships are being built and what the future of critical minerals means for Canada and First Nations.
Register now for the 7th Annual FNMPC conference, Our Collective Advantage: Indigenous Consent at fnmpc.ca/conference/register