Canada to Provide $300 Million to Teck to Expand Rare-Earth Output

By Paul Vieira

OTTAWA--Canada said Tuesday it would provide an equity-like investment of nearly $300 million to Teck Resources to expand the company's production of rare-earth minerals needed for medical devices, defense technologies and electric vehicles.

The money is earmarked for Teck's operations in Trail, British Columbia, which is considered one of the largest fully-integrated polymetallic smelting and refining complexes in the world. Export Development Canada, a state-owned lender, is managing the investment, which Canadian officials said is part of a new policy introduced by Prime Minister Mark Carney to accelerate critical-mineral projects along the value chain from extraction to processing.

Canada said the financing is subject to certain conditions, including regulatory approvals. Officials added the deal also contemplates the federal government obtaining rights for a portion of germanium, antimony and potentially gallium produced at Teck's Trail site.

"These minerals are no longer just commodities. They are strategic assets," said Tim Hodgson, Canada's Minister for Energy and Natural Resources. "That is why the world is hungry for critical minerals, and why Canada must step up to produce, process, and export these materials."

The Carney-led Liberal government is making resource development, especially in the rare-earths field, a policy priority as part of an economic restructuring for the North American economy. Economists like Jimmy Jean from Desjardins Group said the country's economic outlook is contingent on producing these critical minerals and delivering them to customers.

Earlier this year, Hodgson said Canada had secured financial backing for 30 new critical-minerals projects in the country, as Western allies aim to find alternative supplies of rare earths to counter China's dominance in the field.

Teck Chief Executive Jonathan Price said the federal investment at its Trail complex has the potential to deliver a new supply of strategic metals while providing strong returns for company shareholders.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

July 07, 2026 16:14 ET (20:14 GMT)