The Government of Canada unveiled its first Defence Industrial Strategy on Feb. 17, which is a comprehensive plan aimed at strengthening the country’s defence industrial base, securing critical supply chains and ensuring Canada can meet both domestic and allied defence commitments. 

The strategy identified the mining and processing of critical minerals as offering “substantial economic growth potential while directly strengthening national security.” Secure access to critical minerals is positioned as foundational to defence platforms, advanced materials and enabling technologies such as autonomous systems, while also supporting regional development and employment.  

Anchored in Budget 2025’s $81.8 billion defence investment, at the heart of the strategy is a “Build-Partner-Buy” procurement approach that will prioritize Canadian firms and manufacturing in sectors where Canada has strong domestic capabilities, and partner with trusted allies where joint development offers strategic advantage. The strategy will also turn to foreign purchases only when necessary, under conditions that reinforce Canadian industrial capacity, economic reinvestment, and sovereign control. 

According to the federal government, implementing this strategy by 2035 is projected to result in around $180 billion in defence procurement, $290 billion in defence-related infrastructure, and over $125 billion in downstream economic activity, primarily supporting Canadian industry, workforce, and regional economies. 

The Defence Investment Agency (DIA), established in October 2025, will play a key role in executing the strategy, streamlining defence procurement and channelling investments to reinforce Canada’s defence industrial base. The strategy highlighted Canada’s key role as a reliable source of minerals classified as defence-critical by NATO for allied supply chains, noting that Canada already produces 10 of the 12 such minerals—including aluminum, gallium, germanium, graphite, and tungsten—and is also home to the world’s largest deposits of high-grade uranium. 

The strategy also placed high importance on northern and Arctic infrastructure for both defence and industrial activity, noting that northern infrastructure is “currently stretched and insufficient to meet the scale and complexity of military, industrial and civilian activities.” To address this, the strategy designated the Northern Operational Support Hubs (NOSH) program as the main vehicle for developing northern defence infrastructure.  

Planned to take 10 to 20 years to complete and cost $2.67 billion, and designed in collaboration with Indigenous partners, northern communities and regional governments, the NOSH program will establish a network of hubs and secondary nodes in Canada’s North. These hubs and nodes will provide critical infrastructure—such as airports, seaports, medical facilities and alternative power infrastructure—to support military operations while also improving access for resource development, and delivering economic and social benefits to local communities. 

Industry feedback 

In a statement following the strategy’s release, the Association for Mineral Exploration (AME) emphasized that securing reliable access to critical minerals is a central focus of the plan, highlighting the essential role of exploration. 

“Canada’s mineral explorers are up to the task,” said AME president and CEO Todd Stone in the Feb. 17 statement. “Our economic sovereignty depends on more mineral exploration. Without exploration, there are no mines. Without mines, there are no jobs. Without jobs, there is no economic future.” 

The association also noted that British Columbia will play a central role in this national effort, highlighting the province’s “world-class mineral deposits, innovative exploration companies and projects that are ready to develop.” 

Paul Hébert, vice-president of communications for the Mining Association of Canada (MAC), told CIM Magazine that this new strategy is “critical for translating high-level objectives into practical policy direction around production, processing, stockpiling and procurement.” He added that the association underscores the need for ongoing, structured engagement with industry to ensure the strategy reflects operational realities, investment timelines and infrastructure needs. 

He explained that, from MAC’s perspective, the strategy signals that critical minerals are now being treated as foundational to Canada’s defence capabilities and the country’s broader economic security. He noted that the federal government’s approach recognizes that Canada’s own resource base and industrial capacity must play a central role in meeting defence and allied requirements, particularly by securing supply chains for essential inputs such as steel and critical minerals and working with domestic partners in the North and Arctic. 

Hébert also highlighted that broader policy and regulatory factors will play a key role in Canada’s competitiveness. “Canada’s strong environmental, social and governance standards position the country well to be a preferred supplier to defence and allied markets, provided policy momentum is translated into timely, coordinated action,” he said.