Canada’s government and the European Investment Bank (EIB) have taken a step forward in their efforts to secure reliable and sustainable supply chains for critical minerals and metals.
The two have signed a 'letter of intent' to explore future cooperation on critical raw materials, and in a statement the EIB said: “Stronger EU-Canada cooperation will help ensure that key technologies – from clean energy solutions and digital tools to advanced security systems remain reliable and competitively priced for manufacturers and households on both sides of the Atlantic.”
The EIB said that the partnership would also benefit European companies active in Canada’s mining and technology sectors, many of whom are already operating in the country and supply equipment, technology and services.
The agreement builds on the EU-Canada Strategic Partnership on Raw Materials which was announced during June 2021. This agreement focused on the integration of the EU-Canada raw material value chains while building collaboration on science, technology and innovation as well as environmental, social and governance criteria and standards.
The EIB said that the latest development reflected the “renewed momentum in EU-Canada cooperation on climate action, energy security, innovation and economic resilience.”
Nicola Beer, EIB vice president said: “Our objective is to improve market conditions for responsible producers and reliable buyers alike. Together with Canada, we aim to translate shared principles into practical arrangements that reduce risk, support innovation – from exploration and extraction to processing, recycling and substitution – and help mobilise private investment for high-standard projects.”
The EIB says that while the agreement does not create financial commitments for either side, it allows the EIB and the Canadian government to begin discussions on the institutional arrangements required for the bank to operate in the country. The ElB is the financing arm of the European Union, owned by the 27 member states: the EIB is a key provider of finance in the critical raw materials sector and supports the implementation of the EU’s Critical Raw Material’s Act, which aims to ensure access to a secure and sustainable supply of these elements.
"Canada brings large reserves, recognised mining expertise, and strong environmental and social standards. This makes it a natural ally for the EU as it works to diversify and secure critical raw materials supply chains, reduce strategic dependencies, and strengthen economic security," the EIB said.
In terms of the Critical Raw Materials Act, the EU has said that 97% of the bloc’s magnesium is sourced from China and 100% of the rare earths used for permanent magnets are refined in the same coutry. The legislation identifies a list of critical raw materials and a list of strategic raw materials which are crucial to the green and digital transition, as well as for defence and space.
Risks to critical materials supply chains are an increasing concern for governments around the world. At the start of February 2026, the US government used its Critical Minerals Ministerial, held in Washington to announce the signing of agreements with several countries including EU and Japan which will see them work together to “stimulate demand and diversify supply by identifying and supporting projects in mining, refining, processing and recycling". There will also be discussions on the implementation of measures to prevent supply chain disruptions, promote research and innovation efforts, and facilitate the exchange of information on stockpiling.
Further reading
- Critical minerals: Harnessing AI to improve discovery and supply
- Growth in batteries is strong - but global supply chains must diversify to mitigate risk says IEA
- Critical minerals: UK unveils plan to boost production
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