Ottawa announces investment of up to $400M in Teck critical minerals smelter in Trail, B.C.

Ottawa announces investment of up to $400M in Teck critical minerals smelter in Trail, B.C.

Millions in federal-backed financing could double production of key strategic metals

The federal government said it will invest up to $400 million to support the expansion of Teck Resources' smelting and refining complex in Trail, B.C.

The announcement Tuesday is the first under the Canada Critical Mineral Accelerator, a Natural Resources Canada program set up last year to speed up development of minerals it says are needed for economic sovereignty, national security and the energy transition.

The agreement could see the Canada Growth Fund, a federal arm's-length cleantech investment vehicle, make an "equity-like investment" of up to $400 million directly into Teck's facility in Trail, Natural Resources Canada said in a release.

"Canada has what the world wants, and we are moving decisively to get projects built faster," Energy and Natural Resources Minister Tim Hodgson said.

"Our new Canada Critical Minerals Accelerator is about turning Canadian resource abundance into real projects by giving industry the certainty to invest and grow."

Teck said the proposed expansion could double production of germanium and antimony and add new capacity for gallium.

Germanium is used in fibre optic, infrared and semicondicutor technology, while antimony is crucial for flame retardants, batteries and alloys. Gallium is key for semiconductors used in telecommunications, radar and electronics.

Jonathan Price, Teck's chief executive, said the agreement will help the company quickly and significantly increase production of key strategic metals.

“By leveraging Trail’s existing infrastructure and expertise, this initiative has the potential to deliver new supply of strategic metals while providing strong returns for Teck shareholders," he said.

Introduced in the 2025 federal budget, the $2-billion Canada Critical Minerals Accelerator — formerly the Critical Minerals Sovereign Fund — aims to make investment-style financing available to projects alongside private industry, with any financial returns intended to be reinvested into future critical minerals developments.

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Federal officials say the approach is designed to reduce investment risk, attract additional private capital and accelerate projects that might otherwise face financing challenges.

The project has also been identified by the British Columbia government as one of its priority resource projects under its Look West strategy. That designation allows for streamlined regulatory reviews and potential financial support through the province's Strategic Investment Fund.

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UBC expert sees strategic benefit

The agreement also provides a framework for Ottawa to negotiate rights to purchase a portion of future production, helping build domestic stockpiles of strategic minerals.

"China has the lion's share of most of the production of critical minerals, full stop," said John Steen, the director of the Bradshaw Research Institute for Minerals and Mining at the University of British Columbia.

"And if we can reduce that dependence on China, that will put us and our trading partners and NATO allies in a much better situation."

At Tuesday's press conference, the federal government highlighted the geopolitical benefits of strategic mineral extraction and supply.

"We are facing a trade war we did not ask for, the most volatile geopolitics since the end of World War II, which has led to the biggest energy crisis in modern history, technological change at a pace not seen in decades, mainly due to AI, and an accelerating clean energy transition," Hodgson said.

"Anyone who tells you facing these challenges as a government, and as a nation, is not daunting is not telling the truth."

With files from Rosanna Tiranti and The Canadian Press