Ontario Allocates $500 Million for Critical Minerals Processing Fund
The Ontario government announced on May 29, 2025, that it will invest $500 million to establish a Critical Minerals Processing Fund. According to the Ministry of Finance, the fund will provide financial support for projects that aim to increase Ontario’s ability to process critical minerals. The initiative is part of the province’s 2025 budget and is intended, according to the ministry, to support mineral processing infrastructure within Ontario.
The Ministry of Finance states that minerals such as nickel, graphite, copper, cobalt, and lithium are mined in Ontario. These minerals are used in the manufacturing of electric vehicles, renewable energy components, and other advanced technologies, according to information provided by the ministry. The government describes Ontario as including large mineral reserves in the Ring of Fire, an area of approximately 5,000 square kilometres located around 500 kilometres northeast of Thunder Bay.
The Ministry of Finance says the fund is designed to support both upgrades to existing mineral processing facilities and the construction of new processing plants. According to the ministry, the fund is a response to growing global demand for critical minerals and is intended to encourage mineral processing to take place within the province.
In addition to the new fund, the Ministry of Finance reports that Ontario is investing nearly $3.1 billion in loans, guarantees, grants, and scholarships to support Indigenous participation, partnership, and ownership in Ontario’s critical minerals supply chain. The government says this is a separate measure targeting increased Indigenous involvement in the sector.
According to the Ministry of Finance, two new pieces of legislation have also been introduced: the Protect Ontario by Unleashing Our Economy Act, 2025, which the government states is intended to reduce regulatory requirements for infrastructure, mining, and resource projects; and the Protect Ontario Through Free Trade Within Canada Act, 2025, which the government says is designed to remove trade barriers between provinces and territories.
The Ontario Mining Association has publicly stated its support for the measures set out in the 2025 budget and acknowledged the government’s focus on critical minerals processing, infrastructure, and Indigenous partnerships.