If your business operates in Canada’s critical minerals ecosystem, from exploration to processing and advanced materials, Budget 2025 brings major opportunities. With new financing tools, expanded tax incentives, and targeted infrastructure support, the federal government is doubling down on building a globally competitive, secure, and low-carbon industrial base.
Navigating these programs can be complex, but with insights from Ayming, businesses can identify the funding and tax incentives most relevant to their projects. This includes unlocking capital, reducing risk, and accelerating growth.
The path to industrial competitiveness depends on reliable access to minerals essential to batteries, semiconductors, aerospace, clean energy, and advanced manufacturing. Budget 2025 delivers a suite of programs designed to unlock near-term projects, scale processing capacity, and lower the cost of adopting new technologies.
Stronger capital tools for industrial growth
A flagship measure in Budget 2025, the Critical Minerals Sovereign Fund deploys $2 billion over five years to support strategic investments across the critical minerals value chain. Through equity, loans, and offtake agreements, the fund helps companies reduce upfront capital risk, secure anchor financing, and accelerate project timelines.
Canada is also addressing a central industry challenge: the lack of enabling infrastructure for mineral projects. With $371.8 million over four years, the First and Last Mile fund focuses on getting projects into production by supporting key upstream and midstream infrastructure. It consolidates the previous Critical Minerals Infrastructure Fund and brings total financing capacity to up to $1.5 billion through 2029-30.
Additionally, Budget 2025 invests $443 million over five years through ISED and the NRC to support domestic development of critical minerals processing technologies. Funding will help secure long-term access to critical minerals through a national stockpile, open doors to co-investment opportunities with Allied partners in Canadian projects, and accelerate the deployment of cutting-edge processing technologies that can reduce production costs and improve scalability.
Tax incentives strengthening the critical minerals value chain
Budget 2025 enhances the tax landscape supporting critical minerals, lowering capital barriers for companies investing in exploration, processing, and technological innovation.
Eligibility for the Clean Technology Manufacturing Tax Credit has been broadened to cover a wider range of minerals-related processing equipment. Companies investing in refining, precursor production, metallurgical processing, or component manufacturing can now offset a significant portion of capital costs through this incentive.
The reinstatement of SR&ED eligibility for capital expenditures is particularly meaningful for critical minerals operations. Pilot plants, demonstration units, early-stage processing lines, and R&D-driven equipment can now generate refundable credits, reducing both the cost and risk of scaling new technologies.
The Critical Mineral Exploration Tax Credit has been expanded to include minerals such as bismuth, indium, tungsten, and others, offering a 30% investor credit through flow-through shares. This helps accelerate early-stage exploration and attract the private capital needed to advance new deposits.
Looking Ahead: Unlock Government Funding, R&D, and Investment Tax Credits
Canada is establishing itself as a key supplier in the global clean-technology and critical minerals economy. Whether your business is developing extraction capabilities, scaling refining or processing assets, or joining emerging battery and materials supply chains, new government funding programs, R&D tax credits, and investment tax credits are available to accelerate growth.
With Ayming’s expertise, you can build a customized funding roadmap. This roadmap aligns your projects with programs that maximize support, reduce risk, and accelerate time to market.
Contact us today!
One of our experts will be in touch shortly.
