Ontario Investing $500 Million in Critical Minerals Processing

New fund will support made-in-Ontario critical mineral supply chain

The Ontario government is investing $500 million to create a new Critical Minerals Processing Fund as part of its plan to protect Ontario by building a more competitive, resilient and self-reliant economy. The fund will provide strategic financial support to projects that accelerate the province’s critical minerals processing capacity and made-in-Ontario critical minerals supply chain, to ensure that minerals mined in Ontario will be processed in Ontario by Ontario workers. This funding complements the government’s ongoing efforts to unlock Ontario’s critical minerals in the Ring of Fire and elsewhere, to help protect Ontario’s workers and economy from the impact of tariffs and economic uncertainty.

“Our plan to protect Ontario includes building a strong, self-reliant economy and harnessing the value of critical minerals is a key part of our economic future and long-term prosperity,” said Peter Bethlenfalvy, Minister of Finance. “With the creation of the new $500 million Critical Minerals Processing Fund, we’re investing to unlock and process these resources right here in Ontario, securing good-paying jobs and building resilient communities for the future.”

As part of the province’s 2025 Budget, the new fund will help unleash the full economic potential of Ontario’s mineral resources sector by ensuring existing mineral processing facilities can maximize their production, as well as supporting the construction of new processing facilities, so Ontario can meet increasing global demand. By building and upgrading critical mineral processing infrastructure, minerals mined in Ontario will be refined in Ontario, instead of being shipped to other jurisdictions.

“As one of the most mineral-rich regions on earth, Northern Ontario is uniquely positioned at the frontline of our economic future,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Through the Critical Minerals Processing Fund, our government is making a direct investment into processing projects that will strengthen our province’s critical mineral supply chain and keep Ontario workers in high-value jobs, now and for generations to come.”

In an increasingly volatile global market, the new fund will help Ontario meet international demand for critical minerals as a stable, reliable trading partner. Processing critical minerals mined in Ontario will also help protect local jobs in key manufacturing sectors like the auto industry by connecting northern resources with state-of-the-art production facilities in the south.

“This generational investment cements Ontario’s position as a global powerhouse in critical minerals,” said Stephen Lecce, Minister of Energy and Mines. “We’re putting an end to the ‘ripping and shipping’ that sends our critical minerals abroad for processing by investing in a made-in-Ontario supply chain that creates value added jobs here at home. The only way to become a self-reliant nation is to ensure we responsibly develop Canadian resources, which is a commitment at the heart of our plan to protect and grow our economy.”

More information about the government’s plan to protect Ontario, grow our economy, and make Ontario the most competitive jurisdiction in the G7 is included in the 2025 Budget, which was released on May 15, 2025.

Quick Facts

• Ontario is one of the most mineral rich areas in the entire world, a world class mining destination and among the top 10 jurisdictions in the world for mineral exploration. This includes minerals such as nickel, graphite, copper, cobalt and lithium which are key inputs in the manufacturing of electric vehicles, renewable energy solutions and other advanced technologies.
• Ontario’s abundant supply of critical minerals includes the vast reserves found in the Ring of Fire, an area almost 5,000 square kilometres in size located approximately 500 kilometres northeast of Thunder Bay.
• The province is investing nearly $3.1 billion in loans, guarantees, grants and scholarships that would support Indigenous participation, partnership and ownership in Ontario’s critical mineral supply chain.
• As part of its plan to protect Ontario, the province recently introduced the Protect Ontario by Unleashing Our Economy Act, 2025. If passed, this comprehensive legislation would cut the red tape and duplicative processes that have held back major infrastructure, mining and resource development projects, including in the Ring of Fire.
• The province also recently introduced the Protect Ontario Through Free Trade Within Canada Act, 2025, which, if passed, would remove barriers to goods, services and workers between provinces and territories.