The federal government has opened up a pathway for provinces, territories and municipalities to fund at least some of the costs of building clean-energy and transportation infrastructure projects that enable critical mineral development.

Dubbed the Critical Minerals Infrastructure Fund (CMIF), the program is valued at $1.5 billion over seven years. It aims to support the development of strategic infrastructure projects that will enable the acceleration of critical minerals production and reinforce associated supply chains.

For example, the fund will clean energy projects, such as the generation, storage and transmission of non-emitting renewable or alternative energy, as well as grid connectivity. On the transportation side, it will help enable road, rail and marine infrastructure projects that enable the development or expansion of critical minerals resources.

“As major enablers of clean technologies and clean energy sources, demand for critical minerals is projected to rise exponentially as the global economy continues to shift toward low-carbon solutions,” said Energy and Natural Resources Minister Jonathan Wilkinson. “Through the $1.5-billion Critical Minerals Infrastructure Fund, Canada will make strategic investments in projects to help enable and grow the sustainable development of these minerals, reinforcing Canada’s position as a global supplier of choice for clean technology, clean energy and the resources the world needs to build a prosperous net-zero economy.”

Applications for funding can be made through two streams, both of which support mine sites and regional clean energy and transportation infrastructure.

The Preconstruction and Project Development stream will fund pre-construction activities required to advance projects toward a shovel-ready state, for example, planning, studies and engagement with Indigenous groups. 

The Infrastructure Deployment stream will fund activities for shovel-ready projects, such as infrastructure construction, rehabilitation or enhancement. 

The government will make funding decisions based on project feasibility, as well as the potential of the project to support critical minerals production while advancing broader environmental, economic and Indigenous reconciliation objectives. 

A first CMIF call for proposals will disburse an initial tranche of funding to shovel-ready projects that are deployable, having secured all necessary regulatory approvals and permits, and to pre-construction projects that can be deployed in future years. That call will be opened later this fall, and will be run by the Canada Infrastructure Bank.

“The Critical Minerals Infrastructure Fund and the Strategic Innovation Fund will help unlock the critical minerals sector that is so important to the development of clean technology,” said Infrastructure Minister Sean Fraser. “The CIB will play an important complementary role by supporting large-scale projects as we continue along the move toward a net-zero future. Through these investments, we are creating skilled jobs and supporting northern communities for years to come.”

The maximum funding available per project under the first call for proposals will be $50 million for most applicants. Provincial and territorial governments may apply for up to $100 million for public projects.

The CMIF will fund up to 50 percent of total eligible expenditures, except in the case of Arctic, Northern and Indigenous-led projects (up to 75 percent) and public-private partnerships (up to 33 percent).