Ontario is making a significant investment in the development of a homegrown critical minerals supply chain, unveiling a nearly C$3.1 billion funding package as part of its 2025 budget, ‘A Plan to Protect Ontario.’
The initiative aims to foster a more competitive, resilient and self-sufficient economy while placing Indigenous partnerships at the forefront of the province’s resource development strategy.
Announced by Minister of Finance Peter Bethlenfalvy on Wednesday (May 21), the investment is centered on unlocking the province’s critical mineral reserves, many of which are located in Northern Ontario.
“Ontario’s vast supply of critical minerals are at the heart of our plan to protect Ontario,” he said. “By investing to unlock and process these minerals here in Ontario in partnership with Indigenous communities, we can make Ontario the top global hub of critical mineral development and protect our economy, workers and communities for decades to come.”
The funding includes a significant expansion of the Indigenous Opportunities Financing Program, formerly known as the Aboriginal Loan Guarantee Program. The province plans to triple the program’s loan guarantees to C$3 billion and broaden its scope beyond the electricity sector to include mining, critical minerals, energy and pipelines.
This move is intended to help Indigenous communities gain equity stakes and participate directly in the province’s growing resource economy.
Additional measures include a C$70 million investment over four years into the newly renamed Indigenous Participation Fund. This money is designed to support Indigenous communities in areas of high mineral activity by building regulatory capacity and enabling greater participation in project consultations.
Recognizing the need to build long-term leadership in the sector, Ontario will also provide C$10 million over three years to create scholarships for First Nations postsecondary students pursuing careers in resource development.
“Our government is seizing the opportunity to strengthen economic and community partnerships with Indigenous communities across Ontario,” said Greg Rickford, minister of Indigenous affairs. “By investing in Indigenous equity, capacity and training, we’re preparing the next generation for careers both on and in the ground.”
Minister of Energy and Mines Stephen Lecce emphasized the broader impact on the province’s north.
“This is more than just a mining investment; it’s a blueprint for a stronger, more prosperous north,” he said.
“We’re creating real opportunities so young people and Indigenous communities can build their futures at home with good jobs, hands-on skills, and lasting careers.”
The fresh funding comes amid growing global demand for critical minerals like lithium, cobalt and nickel, which are essential to battery technology and clean energy systems.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.