GOVERNMENT FUNDING & NEWS

Canada-U.S. trade talks resume after Mark Carney government rescinds digital services tax under pressure from Trump

The Government of Canada announced it would rescind the digital services tax after U.S. President Donald Trump abruptly ended all trade talks with Canada, citing the tax.

In a news release on June 29, the federal government said it would rescind the tax “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”

Prime Minister Mark Carney and President Trump have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025, according to Ottawa’s news release.

The digital services tax was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians.

Canada’s preference has always been a multilateral agreement related to digital services taxation, Ottawa said.

The scheduled June 30, 2025 collection of the tax will be halted, and Finance Minister François-Philippe Champagne will soon bring forward legislation to rescind the digital services tax, the government said.

John Ruffolo, founder and managing partner at Maverix Private Equity, said in a LinkedIn post that the digital services tax “was a dumb tax that served little purpose and was in contravention of the OECD Model for taxation.”

Income taxation on a gross revenue basis sets a very bad precedent as this is not a commodity tax like HST based on the provision of goods or services, but rather an attempt to tax a corporation as a proxy for its profits in Canada, Ruffolo said. “Ultimately, the Canadian consumer was going to pay for it.”
“While I am definitely not a fan of the way the United States is dealing with Canada in its trade discussions, this hopefully removes an irritant to the U.S. as I think it was very bad public policy in the first place,” Ruffolo said.

Repealing the digital services tax “was the right decision,” said Lawrence Zhang, head of policy at the Ottawa-based Centre for Canadian Innovation and Competitiveness, affiliated with the Information Technology and Innovation Foundation in Washington, D.C.

The tax “would have cost Canadian consumers and businesses the most and invited retaliatory taxes from the United States government, worsening trade tensions just as Canada faces rising tariff pressure,” Zhang said in a statement.

The tax also increased the risk of double taxation for firms already paying abroad and would have undermined fair competition by targeting only large international providers while shielding domestic firms, he said.

With the digital services tax off the table, Canada can shift from reactive policymaking to a real competitiveness agenda, Zhang said. “That means accelerating digital adoption, strengthening IP enforcement, and helping Canadian firms scale.”
Trump had made the announcement to end trade talks with Canada in a post on June 27 on Truth Social, citing Canada’s “Digital Services Tax on our American Technology Companies” – which he described as “a direct and blatant attack on our Country” – as the reason for shutting down negotiations.

Trump has taken particular issue with digital services taxes throughout trade negotiations with other countries, commonly referring to them as “non-tariff trade barriers.” 

However, the U.K. has kept a similar tax in a trade deal with the U.S. that was signed at the G7 summit in Kananaskis, Alta. Finance Canada

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Prime Minister Mark Carney announced that Canada has committed to, with its North Atlantic Treaty Organization (NATO) allies, a new Defence Investment Pledge of investing five percent of annual GDP by 2035 to ensure individual and collective security. At Canada’s 2024 GDP of slightly under $3.1 trillion, meeting the five percent total pledge would mean spending about $154 billion, including $107.5 billion in direct military expenses. As part of this five percent pledge, Canada will invest 3.5 percent of GDP for core military capabilities, expanding on recent investments. An additional 1.5 percent of GDP will be dedicated to investments in critical defence and security-related expenditure, such as new airports, ports, telecommunication, emergency preparedness systems and other dual-use investments that serve defence as well as civilian readiness. The progress of this pledge will be reviewed in 2029 to ensure allies’ expenditures align with the global security landscape. Prime Minister’s Office

The Government of Canada has again proposed cybersecurity legislation, as Bill C-8, An Act Respecting Cyber Security, amending the Telecommunications Act. Bill C-8 is substantially similar to the previous Bill C-26, which died on the order paper when then-Prime Minister Justin Trudeau prorogued Parliament on January 6, 2025. There are minor differences between the current Bill C-8 and the previous Bill C-26. For example, Bill C-8 does not make consequential changes to the Canada Evidence Act that were encompassed in Bill C-26.  Bill C-8 is divided into two parts: the first part proposes amendments to the Telecommunications Act, as well as consequential amendments to other statutes; the second part proposes the enactment of the Critical Cyber Systems Protection Act (CCSPA). The enactment of the CCSPA will create powers for the Governor-in-Council and the Minister of Industry to order Canadian telecommunication services to secure the protection of the Canadian telecommunications system, including against threats of interference, manipulation or disruption. The CCSPA will provide a framework for federally regulated private industries that would protect systems that are vital to national security and public safety. This includes banning particular suppliers’ gear from telecom networks, cutting off services on security grounds, subjecting critical infrastructure companies’ cyber protections to regulator supervision, and sharing confidential information with regulators. Non-compliance with either regime may result in high monetary penalties or imprisonment for individuals. Torkin Manes LLP

The Communications Security Establishment (CSE) Cyber Centre responded to 2,561 cyber security incidents affecting federal institutions (1,155) and critical infrastructure partners (1,406) from 2024 to 2025, according to CSE’s annual report. Other highlights of the report include:

• In 2024 to 2025, CSE produced 3,385 foreign intelligence reports to alert and inform the federal government about foreign-based threats and global events affecting Canada.
• The Cyber Centre published seven major unclassified threat assessments to increase Canada’s cyber resilience and keep Canadians informed.
• CSE produced 85,000+ documents in support of the Public Inquiry into Foreign Interference.
• The Cyber Centre issued pre-ransomware notifications to over 300 Canadian organizations to provide early warning to potential victims a ransomware incident.
• CSE conducted 1,371 supply chain risk assessments in 2024 to 2025 to help increase cyber resilience across the federal government.
• In 2024 to 2025, CSE received 12 ministerial authorizations to carry out foreign cyber operations.
• CSE’s total approved budgetary and statutory expenditures for 2024 to 2025 was just over $1 billion.
• CSE has 3,841 full-time employees, growing by six percent since last year (3,529 in 2023 to 2024). CSE

The Government of Ontario is investing $215 million to support shipbuilding and the broader marine sector in the province, including through establishing a $15-million Ontario Shipbuilding Grant Program (OSGP) to expand the province’s shipbuilding sector. The support provided through the OSGP will ensure Ontario is positioned to support Canada’s National Shipbuilding Strategy and support Ontario manufacturing businesses and workers in the face of U.S. tariffs and economic uncertainty. The OSGP will fund projects that support skills training, infrastructure improvements and the purchase of machinery and equipment in the shipbuilding sector. The first-of-its-kind program in Ontario will provide shipbuilders access to non-repayable grants for up to 50 percent of eligible costs for projects that support the shipbuilding industry’s competitiveness, business growth and long-term capacity. Applications will open in late July through Transfer Payment Ontario. More information on the program can be accessed through Ontario’s funding opportunities webpage. Govt. of Ontario

The Government of Canada has awarded contracts valued at $60 million to Brampton, Ont.-based MDA Space for the delivery and delivery and integration of sensor systems for the Royal Canadian Navy’s next three River-class destroyers, to improve situational awareness and protect the ships against laser and optical guided threats. The MDA Space sensors are being designed and developed in Richmond, B.C., Halifax, N.S. and Brampton. Irving Shipbuilding Inc. will build the new River-class destroyers at Halifax Shipyard as part of the National Shipbuilding Strategy. Lockheed Martin Canada is leading the combat management system design and integration team which includes MDA Space, CAE, L3 Harris, Ultra, BAE and others. MDA Space

Prairies Economic Development Canada (PrairiesCan) announced federal investments of over $10.9 million for seven Alberta-based businesses and organizations leveraging artificial intelligence, digital adoption and advanced manufacturing. These investments will help them grow, diversify and adapt to a rapidly evolving economic landscape. They include:

• Over $1.9 million for RAM Elevators + Lifts to expand the manufacturing capacity of its elevators and lifts for home and commercial spaces.
• $1.8 million for samdesk to commercialize and accelerate marketplace adoption of its AI-powered platform for crisis and travel risk management.
• $2.5 million for Promise Robotics to establish a robotics-driven homebuilding factory that will support the production of sustainable and affordable homes. PrairiesCan

The Federal Economic Agency for Southern Ontario (FedDev Ontario) announced $3.5 million for the Toronto-based Vector Institute to deliver HealthSpark – an initiative to fast-track AI innovation in Canadian health care and services. With this support, high-potential scale-ups and startups will receive training, mentorship and access to key networks and AI engineering expertise, as they develop AI solutions to tackle some of Canada’s most pressing healthcare challenges. FedDev Ontario

The Government of Alberta provided a one-time grant of $3.2 million to 12 applied research associations to upgrade equipment, facilities and infrastructure. The funding will help improve agricultural research and Alberta producers’ competitiveness. This funding will help these associations purchase seeders, tractors, swathers, irrigation systems and portable facilities. Applied research associations bring information from scientists and experts to farmers and ranchers to improve farming techniques. They provide learning and extension opportunities for producers, conduct research and trials to improve farming techniques that improve crop and soil quality, manage pests and protect the environment. Govt. of Alberta

The Government of Alberta is providing $2.8 million to Calgary Economic Development’s (CED) Trade Accelerator Program (TAP), to help more small and medium-sized enterprises scale internationally. In 2024 alone, TAP alumni generated 42 trade deals – amounting to over $11 million in revenue for Alberta businesses — with almost two-thirds sending products beyond North America. Administered by CED, the program has supported over 550 Alberta-based companies to date – many of which have grown to become global competitors in industries from clean tech to consumer products. With this new five-year investment, TAP is expected to reach up to 650 additional Alberta companies. CED is also launching a new program in 2026 called Levelling Up, designed to help TAP alumni take their exporting ambitions even further. Calgary Economic Development

The Federal Economic Agency for Southern Ontario (FedDev Ontario) announced $2.4 million for the Toronto Region Board of Trade to launch its new AI Business Catalyst program. The Toronto Region Board of Trade connects businesses to programs, partners and talent to help them succeed. Through this program, 75 businesses and 460 participants across a variety of industries will have access to the tools they need to adopt AI solutions. These new technologies will enhance productivity, drive innovation and help businesses compete globally, the federal government said. FedDev Ontario

The Government of Canada opened applications for the AI Compute Access Fund, a key initiative under the $2-billion Canadian Sovereign AI Compute Strategy. This fund will provide up to $300 million for affordable access to compute power for small and medium-sized enterprises to develop made-in-Canada AI products and solutions. A due diligence assessment of each project proposal will be conducted to evaluate:

• the organization’s capacity and experience to implement the project.
• the project’s ability to achieve AI Compute Access Fund objectives.
• the viability, impact and benefits of the project to Canada.

The government said the Canadian Sovereign AI Compute Strategy, including the Access Fund, will help:

• scale Canada’s AI industry.
• increase productivity and drive AI adoption rates across the country.
• make high-performance computing more accessible for small and medium-sized businesses.
• foster groundbreaking, made-in-Canada AI solutions in sectors such as life sciences, energy and advanced manufacturing. Innovation, Science and Economic Development Canada

The Government of Alberta is investing $5 million, through Emissions Reduction Alberta, to help Montreal-based Deep Sky design, build and operate the world’s first direct air capture innovation and commercialization centre at Innisfail in central Alberta. The total project value is more than $58 million. Starting this summer, Deep Sky Alpha’s units will begin pulling in air, liquefying carbon dioxide, transporting it by truck, and safely storing it underground at an approved site in Legal, about 50 kilometres north of Edmonton. Deep Sky aims to capture 3,000 tonnes of emissions each year. Emissions Reduction Alberta

The Government of Nova Scotia is investing $1.73 million to support 22 seafood companies and related organizations throughout the province in lowering their greenhouse gas emissions. The three-year Fisheries and Aquaculture Energy Efficiency Innovation Fund, administered by Efficiency Nova Scotia, will provide a total of $6.5 million to industry climate change projects. Thirty-six projects have received funding to date through the Fisheries and Aquaculture Energy Efficiency Innovation Fund, totalling $3.54 million. Govt. of Nova Scotia

Four First Nations in Alberta wrote an open letter to Premier Danielle Smith, saying restrictions on data centres accessing the provincial power grid will limit their communities’ ability to participate in and profit from the AI boom. The Alberta Electrical System Operator’s (AESO) recent announcement of its approach to large load connections “appears fundamentally inconsistent with Alberta’s stated policy objectives of attracting large hyperscalers and catalyzing a data centre industry at scale,” says the letter from the Chiefs of the Alexander First Nation, Paul First Nation, Enoch Cree Nation, and Alexis Nakota Sioux Nation. Currently there are 29 proposed data centre projects representing over 16 gigawatts of demand seeking grid connections in Alberta, the Chiefs point out. “By essentially rationing only 1,200 megawatts (MW) of new capacity among potentially 15 projects, Alberta is rationing opportunity at a time of fierce global competition. This interim 1,200-MW limit – spread across multiple years and projects – falls far short of what is needed to compete for transformative, gigawatt-scale investments.” Restricting power generation companies’ capacity to leverage their investments for economic expansion jeopardizes the fundamental principles of Alberta's competitive market, the Chiefs argue. They urge the Alberta government to revisit the AESO’s interim methodology and develop a strategy that supports gigawatt-scale data centre development. GlobeNewswire

The Government of Manitoba opened a permanent office in Washington, D.C., led by former White House news correspondent Richard Madan, to build on trade and economic relationships with the U.S. that support Manitoba jobs. The D.C. office will develop relationships with U.S. lawmakers, industry leaders and trade officials to promote strong ties with Manitoba and ensure Manitoba’s interests are protected in high-level trade negotiations like a renewed Canada-United States-Mexico Agreement, Premier Wab Kinew said, noting that Manitoba has strong trade connections in states like Illinois, Minnesota, Georgia, Tennessee and Texas. Madan is a journalist who has covered American and Canadian politics for more than two decades including as a White House correspondent for major Canadian news networks. He brings deep connections with major Washington figures and will help get Manitoba’s foot in the door on trade talks, Kinew said. Govt. of Manitoba

Innovation Solutions Canada (ISC) is seeking pre-commercial innovative AI prototypes that can be tested in real life settings and address a variety of priorities within the Government of Canada. The aim is to create pools of conditionally qualified innovations that Canada may select from to address a broad range of federal government organizations' requirements. Each call includes a Standard Component and Military Component. The problems to be addressed are: robotic process automation and automated decision making; and command, control, communications, computers, intelligence, reconnaissance, and surveillance. The closing date is July 22, 2025. For more information, go to ISC’s website here. ISC

The Department of Defence (DoD) is seeking a low-cost consumable uncrewed aircraft system (UAS) which can be used to intercept other low-flying aircraft including small UAS. The UAS targets that this challenge seeks to address range in size from several hundred grams to several hundred kilograms and inhabit airspace ranging from just above ground level to as high as 10,000 feet above ground level, with some achieving speeds in excess of 200 kilometres per hour. The target UAS have variable defences ranging from none, to camouflage, signal jamming, hardened exteriors, radical agility and other creative countermeasures. DoD is looking for creative solutions to this problem in the form of C-UAS Interceptors. More information is available here from Innovation, Science and Economic Development. ISED

RESEARCH, INNOVATION & COLLABORATION

A group of 38 polytechnics, colleges and universities from across Canada launched Labs4, a $55-million national applied research commercialization engine designed to support entrepreneurs and accelerate Canada’s innovation economy. Initially known as the College-University Lab to Market Network for Entrepreneurship and Research Commercialization, Labs4 will develop and deliver hands-on entrepreneurship training, product development support and mentorship through eight regional hubs and three Indigenous Entrepreneurship Hubs that stretch from coast to coast. Nasil Nam, most recently associate director of startups & commercialization at Dalhousie University, was named inaugural national director of Labs4. Labs4 is funded by the Natural Sciences and Engineering Research Council and Mitacs and its institutional partners. Leveraging the state-of-the-art facilities and subject-matter expertise available at network institutions will expedite entrepreneurs and creators’ ability to take new products and processes to the market and therefore make both economic and social impacts sooner. Labs4 includes a four-month placement in polytechnic/college-based applied research facilities where researcher-entrepreneurs receive $10,000 stipends to develop, test and validate prototypes with expert mentorship. Labs4

Canadian entrepreneur Jim Balsillie, former co-CEO of Research in Motion (BlackBerry) donated $5 million to Wilfred Laurier University to establish the Digital Governance Initiative. The initiative is to strengthen Canada’s capacity in law, digital sovereignty, trade and technology governance. Through professional programs, a legal advisory centre and a proposed new graduate degree, the initiative aims to position Canada as a global leader in digital governance. The Digital Governance Initiative will offer a suite of executive-level programs designed to support private- and public-sector leaders in gaining expertise in evolving disciplines including artificial intelligence, cybersecurity, data governance and digital trade. The initiative includes a unique-in-Canada legal advisory centre for international trade and technology governance. Designed to problem-solve government and industry challenges in real time, the centre will be staffed by legal and policy experts while also providing experiential learning opportunities to graduate students. Additionally, Wilfred Laurier University and the Balsillie School of International Affairs in Waterloo will offer new courses in the Master of International Public Policy program and a proposed graduate degree focused on law, digital sovereignty and global technology governance, subject to approval. Wilfred Laurier University

Western University received $2.9 million from Brain Canada for the Mesoscopic Integrated Neuroimaging Data (MIND) Platform, a project led by Ali Khan, a professor at Western’s Schulich School of Medicine and Dentistry and Canada Research Chair in Computational Neuroimaging. The platform creates high-resolution images of brain structure and activity using high-powered MRI and light sheet microscopy. While MRI captures images of living brains and their structure, light sheet microscopy allows researchers to image entire brain samples with striking clarity – revealing the pathological hallmarks of disease, such as amyloid plaques in Alzheimer’s. The platform will foster international collaboration by enabling scientists from around the world to use an online portal to submit samples and analyze data. The MIND Platform includes recent investments from Canada Foundation for Innovation and Ontario Research Fund. Western

Leaders from three of Canada’s most prominent tech companies urged startup founders to stay in Canada and just say “No” to selling their companies to the U.S. or other countries. Shopify president Harley Finkelstein, Wealthsimple founder Mike Katchen, and Cohere founder Aidan Gomez told the audience at Toronto Tech’s Homecoming event to say no to leaving Canada, no to selling out, and no to the idea that Canada lacks ambition. “It’s the [Silicon] Valley-or-bust mentality that breaks the ecosystem and really hurts Canada,” Gomez said. “It’s not enough to build a company for Canada – you want to build a company for the world in Canada.” Gomez and Finkelstein both said their companies rejected offers of American capital in the early days. Gomez warned that if Canada doesn’t strengthen its economy and build a diverse supply chain and a diverse set of companies “that don’t rely on just natural resources, finance or whatever, we will not be here in half a century.” BetaKit

The Munk School of Global Affairs & Public Policy at the University of Toronto (U of T) offered to welcome returning international graduate students from Harvard Kennedy School (HKS) for the second year of their program should they be unable to remain or re-enter the United States due to visa restrictions imposed by the Trump administration. HKS returning students would have the option of continuing their degrees as visiting students at the Munk School. These students would take a mix of courses taught by HKS faculty (both online and in-person) and U of T faculty. “We have extended this offer to help international students sustain academic momentum and community and to give students from both schools the opportunity to connect with their counterparts and the broader U of T community,” the Munk School said. The students from HKS would be enrolled as full-time, non-degree students at the Munk School, and their participation would not reduce the number of spaces available for U of T students in any academic programs or in university housing. Trump cancelled Harvard’s authorization to admit international students, on the claim that the university has harboured radicals on campus and has too many entanglements with hostile foreign powers. Harvard is fighting the move in court. Munk School

The Donald Trump administration said Harvard University violated federal civil rights law by failing to address the harassment of Jewish students on campus. In a letter to Harvard’s president, Alan M. Garber, on June 30, officials from four federal agencies said that the university was “in violent violation of Title VI,” a portion of federal civil rights law that bars discrimination on the basis of race, colour or national origin. The Trump administration officials said that Harvard’s “commitment to racial hierarchies” had “enabled antisemitism to fester” at the nation’s oldest and wealthiest university. They warned that not making “adequate changes immediately will result in the loss of all federal financial resources and continue to affect Harvard’s relationship with the federal government.” Harvard sharply disputed the government’s account, saying in a statement that antisemitism was “a serious problem” that the school had taken significant steps to address. The university said it was “far from indifferent on this issue” and that it “strongly disagrees with the government’s findings.” The New York Times

James Ryan, president of the University of Virginia, said he was resigning after the U.S. Justice Department demanded he step down. "While there are very important principles at play here, I would at a very practical level be fighting to keep my job for one more year while knowingly and willingly sacrificing others in this community," Ryan wrote in a letter to the campus community. The Justice Department has for months been quietly investigating whether the University of Virginia complied with President Donald Trump’s order banning diversity, equity and inclusion (DEI) programs. The university’s board voted to dissolve its DEI office in March, but multiple conservative alumni groups and legal entities complained that Ryan failed to eliminate DEI from all corners of campus. Brendan Cantwell, a higher education professor at Michigan State University, said Ryan’s resignation is a “major blow” to the independence of American institutions. “It is a sign that major public research universities are substantially controlled by a political party whose primary goal is to further its partisan agenda and will stop at nothing to bring the independence of higher education to heel,” Cantwell told Inside Higher Ed. Inside Higher Ed

Joel Blit, professor of economics at the University of Waterloo, announced the launch of the Canadian AI Adoption Initiative (CAIAI). The CAIAI brings together experts and organizations around the singular goal of promoting widespread AI adoption to ensure Canada’s future prosperity. The CAIAI is a partnership between the University of Waterloo, the Centre for International Governance Innovation, and the Centre for the Study of Living Standards. The CAIAI’s objectives  are:

• Develop ideas and policies to foster adoption based on the best available evidence.
• Develop metrics to track progress in AI adoption.
• Partner with other organizations to roll out initiatives that foster adoption.

The founders of the new initiative set out 10 recommendations to enhance Canada’s AI adoption strategy.

The Canadian Space Agency (CSA) announced that Brampton, Ont.-based MDA Space will be taking over the operations of the David Florida Laboratory (DFL) in Ottawa. The Government of Canada had announced in March 2024 that its operations at the DFL would be terminated as of March 31, 2025, due to federal spending cuts, but subsequently launched a request for information to gauge the interest of industry to potentially lease the DFL. The DFL is Canada's world-class spacecraft assembly, integration and test centre, located on Shirleys Bay Campus in Ottawa. Testing activities performed at the DFL constitute one of the last steps that spacecraft and space hardware undergo prior to space deployment to demonstrate their ability to survive the stresses of a rocket launch and the space environment. Public Services and Procurement Canada, on behalf of the CSA, issued a one-year renewable occupancy licence to MDA Space to operate the DFL's space testing facilities. MDA Space intends to start offering services to Canada's space sector as early as fall 2025. This occupancy licence is an interim measure to offer options to meet the Canadian space sector's needs. In parallel, the federal government is currently developing a longer-term real property strategy on the use and ownership of the building and the continued access to this highly specialized space testing centre in Canada. CSA

Caledon, Ont.-based Canadensys Aerospace and Norway-based KSAT are collaborating on communication services to support Canada’s first lunar rover. As part of the collaboration, KSAT will leverage its network of very large aperture antennas to provide ground station services for the Canadian Lunar Rover Mission, including direct to Earth communications from the lunar surface. Canadensys is also under contract to the Government of Canada for the nation’s first lunar rover. Canadensys provides lunar surface infrastructure and designs and builds lunar rovers, observatories, greenhouses and science instruments for customers around the world. Initiated under the Canadian Space Agency’s Lunar Exploration Accelerator Program, this lunar rover will demonstrate key technologies for future lunar activity and accomplish meaningful lunar science. Canadensys Aerospace

The SpaceX Falcon 9 launch on June 23 of the Transporter-14 rideshare mission included five Canadian satellites and several payloads built by Canadian companies. Transporter-14 is a dedicated SmallSat rideshare mission with 70 payloads including “cubesats, microsats, re-entry capsules, and orbital transfer vehicles carrying three of those payloads to be deployed at a later time.” The Canadian satellites are:

• MOBIUS-1 – The first satellite from Halifax, N.S.-based Galaxia Mission Systems.
• Emissions-detecting satellites GHGSat-C12 (Pierre) and GHGSat-C13 (Valmay).
• LEMUR-2 KRISH – The first satellite for Mission Control for the Mission Persistence, “an advanced space technology demonstration aimed at pushing the boundaries of autonomy and artificial intelligence in orbit.”
• YAM-10 (EDA-1) – The first satellite of a 10 satellite constellation for Vancouver-based EarthDaily Analytics.

Also launched on SpaceX Falcon 9 was PULSAR IOV from Xona Space Systems. The California-based company, which opened announced a Canadian office in September 2024, received funding for the mission from the Canadian Space Agency (CSA). According to the CSA,  “Xona Space Systems will test Pulsar, a demonstration satellite designed to validate a new generation of satellite navigation from low-Earth orbit. This technology could improve precision and reliability of positioning services, including in urban areas, remote areas and the Arctic.” SpaceQ

Following the successful rollout of North America’s first-of-its-kind Electrified Vehicle Battery Recovery Program in Quebec, the industry-led initiative EVBatteryRecovery.ca is expanding across Canada. This national rollout, involving 16 auto manufacturers, is designed to collect, transport, repurpose, remanufacture or recycle eligible end-of-life EV batteries from hybrid, plug-in hybrid, all-electric and fuel cell vehicles outside of existing manufacturer-led recovery programs. The EV Battery Recovery Program was initially launched in June 2023 in Quebec, with vehicle manufacturers working with Call2Recycle, which operates in the U.S. and Canada. With the national expansion, EVBatteryRecovery.ca will now be accessible to battery-holder groups and stakeholders across the country. Call2Recycle

The federal government and provinces with a zero-emission vehicle sales mandate should make “short-term adjustments” to their programs or the risk of the policy going the way of the now-cancelled consumer carbon tax, said Daniel Breton, president of Electric Mobility Canada and a former Quebec environment minister. His comments come as automakers and others in the industry express a fresh round of concerns about the Liberal government’s sales mandate, which has set a target of reaching 100-percent zero-emission vehicle sales by 2035, beginning with initial targets of hitting 60 percent by 2030 and at least 20 per cent by 2026. “We believe that B.C, Quebec, and the federal government should make short-term adjustments, because between now and 2030 we don’t know yet what’s going to happen south of the border. We don’t know yet what’s going to happen between Canada and the U.S.,” Breton told the National Post. “Lowering the targets between now and 2030 would be a reasonable path.” In March, Statistics Canada reported a nearly 45-percent drop in the sale of new zero-emission vehicles from the same month the year before. StatsCan reported in April that the sales of these vehicles fell to around 7.6 per cent. National Post

FireSwarm Solutions and Strategic Natural Resource Group announced a partnership with Innergex Renewable Energy to combat wildfires in British Columbia with AI-powered drones. Squamish-based FireSwarm Solutions leverages advanced autonomous ultra heavy-lift, long-endurance uncrewed aerial system and drone technology, along with AI and machine learning algorithms and fire mission kits, to deliver turn-key rapid detection and responses to wildfires. Innergex, an independent renewable power producer with operations in Canada and the U.S., manages more than 40 hydroelectric facilities, three dozen wind facilities, 10 solar facilities, and multiple battery energy storage facilities. Within B.C., Innergex operates 22 facilities, with another three currently in development. Campbell River, B.C.-based Strategic Natural Resource Group, which began working with FireSwarm earlier this year, will provide technical expertise and project management services. Techcouver

The Prince Rupert Gas Transmission (PRGT) project is facing a British Columbia Supreme Court challenge from three groups that argue that BC Energy Regulator (BCER) overstepped its bounds when it decided last year to split the pipeline route’s Section 5 permit into two parts. One permit crosses Crown property (5A) and the other (5B) crosses Nisga’a Nation territory. The Skeena Watershed Conservation Coalition, Kispiox Valley Community Centre Association, and Kispiox Band allege that BCER’s goal was to fast-track the approval of a crucial permit to allow construction on Nisga’a territory. They argue that BCER unfairly created Section 5B without completing a full assessment of PRGT’s cumulative effects, and are seeking a court order to quash the provincial regulator’s decision. PRGT is co-owned 50-50 by the Nisga’a, which supports the regulator’s decision, and Houston-based Western LNG. The 750-kilometre pipeline is estimated to cost up to $12 billion to build. It would feed the $10-billion Ksi Lisims LNG project on Nisga’a-owned property on the West Coast; the project is currently undergoing an environmental review. The Globe and Mail

A new partnership between Edmonton Unlimited and Platform Calgary aims to combine each city’s strengths for mutual success. The ongoing partnership is a way to connect Edmonton to Calgary’s strengths, and vice-versa, through greater communication between the two innovation agencies. Calgary is thriving in fintech, while Edmonton is known for its life sciences and artificial intelligence expertise. The two organizations already work together on the Alberta Catalyzer pre-accelerator with Alberta Innovates. Future steps could include inter-city navigation between startups, investors and mentors, as well as coordinated travel between cities for tech events like Startup Week in Edmonton and Innovation Week in Calgary. Taproot Edmonton

The Centre for Probe Development and Commercialization (CPDC) and Lab2Market (L2M) announced the L2M Discover Radiopharma program, an initiative to cultivate entrepreneurial skills among Canadian researchers in the radiopharmaceutical sector. With a long-standing relationship with CPDC, McMaster University is the strategic delivery partner for L2M Discover Radiopharma Beginning September 16, 2025, the 10-week virtual training program will equip students and faculty with the foundational tools necessary to embark on their entrepreneurial journey and advance their research toward commercialization. L2M Discover is an entry-level training program that serves as a stepping stone to the Lab2Market suite of programs, including Validate Foundations, Validate, and Launch. Tailored specifically for researchers in the radiopharmaceutical field, this program aims to bridge the gap between scientific discovery and market impact by cultivating entrepreneurial mindsets and skillsets. Lab2Market

Vancouver-based AI-powered business intelligence software startup Klue laid off over 40 percent of its workforce in response to increasing competition from businesses developing their own AI solutions. Klue, which helps tech sales professionals gather competitive intelligence, has been facing challenges from both internal AI developments within companies and external competitors like OpenAI’s ChatGPT. Klue co-founder and CEO Jason Smith announced that the company is shifting to an “AI-first” operational model to accelerate profitability and adapt to the changing market dynamics. Despite recent layoffs, Klue remains well-funded with significant backing from investors like Tiger Global and Salesforce Ventures. Startup Ecosystem Canada

Quebec City-based autonomous driving software company LeddarTech filed for bankruptcy under Canada’s Bankruptcy and Insolvency Act, after announcing plans to wind down operations on June 16. The filing from the company details $145.9 million in debts. Secured (collateral-backed) debts represent $138.9 million of the figure and include $53.2 million owed to the Quebec government’s Investissement Québec and a total of $40.3 million to investor and credit provider Desjardins. Other major secured debts belong to FS Investors and Prospector Sponsor ($13 million each), Fidelity ($8.3 million), and the federal development bank BDC Capital ($4.1 million). LeddarTech was founded in 2007 and developed software solutions to help autonomous vehicles navigate their surroundings. The company established research facilities in Montreal and Tel Aviv, Israel. BetaKit

VC, PRIVATE INVESTMENT & ACQUISTIONS

Montreal-based Fiera Capital Corporation and the Qatar Investment Authority (QIA) launched the US$200-million Fiera Qatar Equity Strategy fund. Fiera will manage investments in equities on the Qatar Stock Exchange via the fund and offer them to international and local institutions. The QIA, Qatar’s sovereign wealth fund, will be the anchor investor and contribute capital to the fund through cash and stock. Fiera has an office Abu Dhabi and now plans to open one in Doha. This is the second partnership announced as part of QIA’s Active Asset Management Initiative. Fiera Capital

Richmond, B.C.-based last-mile delivery company UniUni raised US$70 million in a Series D funding round led by Bessemer Venture Partners, with participation by new and existing global investors including DCM, Celtic House and LFX Venture Partners. UniUni, which has more than 80 warehouses across North America, said the funding will be used to expand into new warehouses, advance AI capabilities, and offer a wide delivery footprint across both the U.S. and Canada. UniUni

Toronto-based wellness startup company Othership raised $11.3 million to expand its luxury sauna and ice bath experiences in the U.S. U.S. investors contributed the majority of the funds, raised though a Simple Agreement for Future Equity, a form of early-stage investment that converts into equity upon a triggering event like a later funding round. Othership focuses on emotional wellness, community connection and transformation without the need for alcohol or phones. Fundz.net

Toronto-based health tech startup company NiaHealth raised $5.75 million in a seed funding round, led by Golden Ventures, with participation from Kyle Braatz (CEO, Fullscript), Satish Kanwar and Arati Sharma (Good Future), Roar Ventures, Coelius Capital, The51 women-focused venture fund, Klue, CIBC, and returning investors Version One Ventures, ScaleGood Fund, Garage Capital and Ivan Yuen (Wattpad). NiaHealth creates lab tests that measure over 100 biomarkers. The tests are connected to a dashboard that identifies key health risks and provides next steps on which doctors in the public system can follow up. BusinessWire

Toronto-based Juniper Genomics raised $4.6 million to commercialize its embryo screening test, as the company aims to create a new clinical standard for IVF genetic testing.  Company Ventures led the funding round, with participation from Innospark Ventures, MBX Capital, Amboy Street Ventures, Dria Ventures, and Blue Collective. Juniper Genomics combines whole genome and transcriptome sequencing with trio analysis including both biological parents. The platform screens for specific genetic changes linked to IVF failure, miscarriage and medical conditions after birth. Juniper Genomics said the funding will support commercial expansion, team growth and ongoing research partnerships as Juniper rolls out to early adopter clinics across North America. The company has received support from Genome Canada and Genome Quebec GAPP grant funding alongside private investment. Femtech Insider

California-based chip-making giant Nvidia acquired Toronto-based CentML including the company’s technology, employees and customer base. Financial terms weren’t disclosed. CentML is a machine learning startup firm that provides an optimization platform to enhance the efficiency and cost-effectiveness of AI model training and deployment. CentML CEO Gennady Pekhimenko has taken a position as senior director for AI software at Nvidia, while chief technology officer Sam Wang and chief operating officer Akbar Nurlybayev have moved into management roles at the chip company. Seeking Alpha

REPORTS & POLICIES

Three-quarters of Canadians support “fast-tracking” major projects but not at the expense of bypassing environmental reviews: Angus Reid Institute

Three-quarters of Canadians say they support “fast-tracking” major projects, according to a new survey and report from the non-profit Angus Reid Institute.

But half (49 percent) are opposed to bypassing federal environmental reviews to speed things up, and three in 10 (30 percent) do not want provincial oversight ignored either.

The federal government’s Bill C-5, the One Canadian Economy act – which last week passed in the Senate and received royal assent to become law – has proven controversial among some First Nations.

Sen. Paul Prosper, who is Mi’kmaq, proposed an amendment to ensure projects cannot be approved without the explicit free, prior and informed consent of affected communities, but it failed to pass.

While the legislation guarantees consultation on projects throughout their timeline, it does not offer a veto to Indigenous groups, many of whom worry their constitutional rights will be ignored in the rush to build, the Angus Reid Institute says.

Rebecca Alty, Crown-Indigenous Relations Minister, said the government would give priority to projects that engage with Indigenous people first, as well as look “for projects that have Indigenous support and, even better, Indigenous equity.”

A majority of Canadians (59 percent) support where the bill landed, with consultation but no override for First Nations.

Other highlights of the survey include:

• Eighty-eight percent of Canadians support reducing trade/labour barriers between provinces.
• Fifty-eight percent support declaring some projects “in the national interest” to override provincial oversight, but 30 percent are opposed to this.
• Fifty-two percent support limiting provinces’ abilities to block energy, mining or cleantech projects, but 31 percent are opposed. Those in Alberta are most supportive (75 percent) of bypassing provincial laws, after several instances where major oil pipeline projects – the TransMountain expansion, Northern Gateway, Energy East – were hung up or halted because of opposition outside of Alberta.
• Forty-nine percent are opposed to condensing or bypassing environmental reviews in certain cases, with 38 percent supporting this. In Quebec, 42 percent oppose provincial laws and regulations being overridden. Angus Reid Institute

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Extreme rise in policy uncertainty is taking a toll on business and consumer confidence: Deloitte

The extreme rise in policy uncertainty in Canada now exceeds levels experienced with the COVID-19 pandemic, according to a new economic outlook report by Deloitte.

This uncertainty is taking a toll on confidence, with consumer and business confidence measures falling to the lowest levels outside the pandemic, Dawn Desjardins, Deloitte’s chief economist, wrote in a forward to the report.

“In the near term, we expect uncertainty about the future relationship with our largest trading partner to delay business investment and weigh on hiring which, in turn, will keep consumers sidelined,” she said. “A modest recession is likely to occur this year.”

However, with negotiations between the U.S. and its trading partners continuing, a new Canadian federal government in place and interest rates lower than they were a year earlier, Deloitte’s base case assumes Canada’s economy will regain its footing later this year.

The prospect that ongoing trade talks between the Canadian and U.S. governments will yield results, and governments will follow through with policies to ease regulations, boost defence spending and unleash funds to build badly-needed infrastructure, should be sufficient for business confident to return, Desjardins said.

“Overall, our forecast calls for real GDP to grow by 1.1 percent this year before accelerating to a 1.6-percent pace next year.”

Recent data showed a sharp drop in Canadian exports to the U.S. in April, down 10.8 percent month-over-month and resulting in the largest trade deficit in history.

This may continue over the months ahead, especially for products like steel and aluminum and finished automobiles, that continue to face steep tariffs, the report says. Overall, real exports are forecast to fall by 1.5 percent in 2025.

Central Canada and Eastern Canada are facing the most subdued economic growth forecast this year, with Ontario particularly hard hit given its exposures to industries with large tariffs in place.

British Columbia will also be hit by the tariffs and, when coupled with high household debt levels and recent completion of major infrastructure projects, will leave the province facing another year of soft growth.

Energy-producing provinces will lead gains with decent growth expected in Alberta, Saskatchewan, and Newfoundland and Labrador.

Non-residential business investment, after falling by 0.8 percent this year on the heels of last year’s 1.8-percent decline, is expected to rise by 2.4 percent next year, according to the report.

Canada’s GDP shrank by 0.1 percent overall and manufacturing contracted 1.9 percent in April, with vehicle and related equipment production faring the worst, Statistics Canada reported.

The wholesale trade sector declined by 1.99 percent in April, the largest monthly decline since June 2023, as activity subsided in seven of the nine subsectors. Deloitte

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Federal government lacks whole-of-government oversight and consistent tools to determine “best value” in procurement

The concept of “best value” in federal government procurement has evolved during the past 60 years from a best price and technically compliant approach to one that supports achievement of broad policy outcomes including socio-economic and environmental returns, according to a report by the Office of the Procurement Ombud.

However, the federal procurement system requires additional maturity to demonstrate success in this area, the report says.

For instance, there is improvement needed in collecting and sharing accurate data; reporting and accountability; training and development; and greater consistency needed in the application of policy.

Contracting authorities need guidance and support and there needs to be policy alignment between departments to ensure fair, open, and transparent procurement processes.

“What would be most beneficial is for policy makers to ensure that new policy is accompanied with all the necessary tools before it is promulgated in order to avoid confusion, costly mistakes, and risk aversion in the procurement community,” the report says.

The approach to best value may cost taxpayers more in upfront spending and caution needs to be taken to ensure that the added long-term benefits have real value and are not simply an attempt to demonstrate a behaviour rather than achieve it, the report says.

“Costs associated with implementing socio-economic benefits often increase with no clear and consistently applied metrics to assess the impacts.”

While embedding socio-economic requirements into large procurement contracts may realize some long-term benefits, one participant interviewed suggested that there may be more effective ways for the government to inject positive outcomes into the Canadian economy.

For instance, they suggested that providing funds to underrepresented students through a formalized scholarship program may lead to more benefits than could be achieved through a procurement process.

“The effort of using procurement to support certain initiatives may not be focused properly to truly benefit society in a consistent manner and may drive up the cost of procurement.”

It was common to hear that new policies are frequently implemented without adequate information or training support, the report said.

One federal department noted through a tabletop exercise that, while the working level was aware of the outcomes, they did not necessarily know what to do with the rules and how to navigate all of the policies and procedures to get there.

Federal procurement training requires updating for effective implementation, the report said.

There is a desire to not only address the outdated courses and gaps in specific areas and initiatives, but to develop and elevate contracting authorities to apply advanced strategic and critical thinking while adding in flexibility to be creative and innovative.

“There is no whole-of-government oversight applied to ensure compliance with an overarching and government-wide strategy for best value,” the report noted.

Innovative Canadian companies and other stakeholders in Canada’s innovation ecosystem have frequently complained that federal departments and agencies give preference to large companies – including foreign multinationals – and/or the lowest bid when awarding procurement contracts.

The Procurement Ombud acknowledged that there is no consistent tool used in Canada to calculate the inclusion of socio-economic criteria toward achieving best value.

Some departments have checkmarks in their electronic procurement systems to indicate if there are considerations such as socio-economic considerations [beyond the lowest bid] and also for accessibility considerations.

However, there is a distinct lack of tracking for other factors such as underrepresented suppliers and small and medium enterprises, the report said. “It is not possible to demonstrate progress since there is no baseline established and no tracking for underrepresented groups.”

There is a need to have high-quality data on socio-economic factors to understand how to reduce risk and create good justification for the inclusion or exclusion of certain criteria in a procurement process and to inform the creation of solid evaluation criteria, the report said.

There also is no federal government-wide vendor performance management program. A comprehensive vendor performance management program would better protect Crown interests and improve transparency on outcomes for federal contracts, the report said.

For policymakers, the report recommended:

• Collaborate across government to build standardized procurement practices by identifying gaps, opportunities and through knowledge sharing.
• Focus on data collection and reporting across government to align and refine the tools to capture government-wide data and integrate this into policy guidance.
• Capture and share information on vendor performance in a robust and centralized Vendor Performance Management program.
• Provide guidance on assessing and enforcing the various socio-economic factors individually.
• Establish a formula for calculating best value by looking to domestic and international partners for examples of validated formulas used to calculate best value across various jurisdictions.

The report doesn’t address the issue that many federal departments – particularly the Department of National Defence – have failed to meet annual targets in procuring products and services from small and medium-sized Canadian companies. Office of the Procurement Ombud

********************************************************************************************************************************Record-high insured losses including from natural disasters requires investments in mitigation, resilient infrastructure and diversified economies: RBC

The Insurance Bureau of Canada saw a record $8.5 billion in insured losses stemming from major events in 2024, including the remnants of Hurricane Debby in Quebec, a significant hailstorm in Calgary, and the Jasper wildfires, according to a new report by RBC.

Data shows seven of the top 10 years for total insured losses have occurred in the last decade – highlighting a persistent upward trend.

There were 29 disaster incidents in 2016 – hitting a peak with the devastating Fort McMurray wildfire creating about $4 billion in damages alone.

The annual average cost of natural disasters soared to $1.5 billion between 2009 and 2019 – compared with only $600 million in the previous decade – “a clear indication of escalating economic risk.”

In the immediate aftermath of disasters, massive reconstruction efforts tend to buoy the economy, the report says.

Rebuilding damaged infrastructure, homes and businesses can temporarily boost gross domestic product and lower unemployment. This pattern plays out repeatedly in monthly GDP data.

Natural disasters cause significant disruption to economic activity, but are followed by a quick bounce back as activity re-starts and rebuilding begins. 

However, this short term economic bounce back can be deceptive, the report notes.

Part of the recovery typically reflects rebuilding lost assets rather than investment in new assets. The shift of resources towards reconstruction means less production resources are available for investments like technological upgrades or expanding the capital stock.

While rebuilding supports current employment figures, replacing what was lost typically has less impact on future productivity growth versus those resources being used on new investments instead, the report says.

“Therefore, funds used for recovery represent lost opportunities to invest in innovation or research and development, which are vital for sustainable economic growth.”

To put this opportunity cost in context, the total damage of $5 billion incurred in 2016, including the Fort McMurray wildfire which contributed most of that amount, represented roughly 14 percent of the nation’s R&D spending that year and diverted resources from future productivity and innovation.

The repercussions of frequent natural disasters extend well beyond immediate damage repair, the report says.

For example, Alberta’s oil industry has experienced significant disruptions due to wildfires, which have led to unplanned shutdowns at critical production facilities. These shutdowns dampen local economies, but also send ripples through global oil markets by reducing supply and creating price volatility.

Insurance payouts have also climbed along with rising premiums as the number of disasters increase. 

Homeowners’ insurance premiums have increased by five percent per year on average over the last two decades – more than twice the two-percent average inflation rate.

This price pressure has been compounded by surging insured losses from severe weather, which more than doubled from $3.6 billion in 2022 to $8.5 billion in 2024. “Higher premiums are placing growing financial burden on households and businesses.”

Dealing with natural disasters will continue to be a more frequent challenge for Canada’s economy, and the way we deal with them has broader implications for productivity and living standards, the report says. “There’s a need to shift focus from just reconstruction efforts to long term resilience.”

The report recommends:

• Proactive investments in mitigation, such as improved forest management practices, can significantly reduce future disaster costs and severity. These prevention strategies are more cost-effective than post-disaster recovery and also help stabilize insurance premiums and secure local economies against recurring shocks.
• Diversifying regional economies – particularly in areas heavily dependent on resource extraction or tourism – can mitigate the impact from natural disasters and lessen regional vulnerabilities.
• By channeling resources into resilient infrastructure, innovation-oriented policies and proactive disaster prevention measures, Canada can create a robust economic environment that is less susceptible to the cyclic nature of rebuilding destroyed assets, and more geared towards investing in new growth drivers. RBC

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Western Canada is well positioned to became a powerhouse in critical minerals-battery production value chain

Western Canada holds significant potential to develop into a globally competitive value chain in critical minerals mining and processing, and production of batteries and battery materials, according to a new report from the Battery Metals Association of Canada.

The report, done in collaboration with the Transition Accelerator and Energy Futures Lab, identifies eight regional clusters in British Columba, Alberta, Saskatchewan and Manitoba, and assesses opportunities and gaps across five of the eight clusters to build a regionally grounded strategy.

The clusters are:

• Northern British Columbia: A remote yet mineral-rich region with strong potential for copper, nickel, gold and silver, but lacking local processing capabilities. Strategic investments in nickel and copper metallurgy, infrastructure and workforce training could unlock value-added opportunities and anchor a fully integrated mining cluster in Canada.
• Vancouver and Lower Mainland: A clean-tech innovation cluster with strengths in technology development for battery processing, recycling and potential in manufacturing, backed by top talent and global connectivity. Strategic support for battery manufacturing, local supply chains, electricity access and scale-up of innovators could solidify its role in Canada’s battery value chain.
• The Kootenays: With a strong metallurgical base anchored by Teck’s smelter, the Kootenays are emerging as a cluster for battery recycling, refurbishment and niche manufacturing. Future growth depends on diversifying product off-takers, upgrading infrastructure, advancing the extraction of different minerals and boosting R&D in material recovery. Expanding into copper and nickel metallurgy is also a promising path.
• Western Alberta: This cluster holds strong potential for lithium extraction from brines, supported by oil and gas infrastructure and a skilled workforce. With additional resources, including iron, phosphate and vanadium, as well as industrial assets such as the Greenview Industrial Gateway, the region is well positioned for future midstream development. Unlocking this potential will require access to clean energy, supportive policies and strong coordination with the Calgary-Edmonton Corridor.
• Calgary-Edmonton Corridor: The region is a nationally significant industrial powerhouse with deep strengths in oil, gas and petrochemicals. Now, it's poised to lead in advanced battery materials. With access to critical feedstocks such as lithium-rich brines, vanadium-bearing fly ash and synthetic graphite sources, the region is well positioned to establish Canada's midstream capabilities. By expanding, refining and focusing on the production of cathode and anode materials, the corridor can become a globally competitive hub for advanced battery materials and processing. Investing in clean energy and talent, as well as boosting industry collaboration, will be necessary.

Western Canada’s battery ecosystem is evolving from a scattered set of industrial nodes into a strategically connected network of regional clusters, the report says.

Each cluster, from resource-rich regions in the North to advanced material manufacturing clusters in Alberta and battery manufacturing centres in southern B.C., has unique strengths that, when integrated, form a complete and resilient battery value chain.

Material flows between clusters, from lithium and phosphate to nickel, cobalt and copper, reveal a powerful opportunity: “specialization by region combined with shared infrastructure and collaboration can generate greater collective value than isolated growth.”

This interconnected vision takes shape in what the report’s authors call the “give and go play,” a material flow pattern that starts in Northern B.C. and the Territories, curves through Alberta’s industrial heartland for cathode and anode material production, and folds back to Southern B.C. for battery assembly.

Alongside this horizontal flow, the concept of “Bar Down” adds a vertical dimension: a flow of raw materials moving southward from the North, supported by an efficient transport infrastructure.

This vertical structure originates in the resource-rich North, specifically in Yukon, Northern B.C., and the Northwest Territories, where mining operations are emerging to supply lithium, cobalt, nickel, copper and rare earth elements.

These critical materials must move downward through north-south transport infrastructure and trading corridors, connecting:

• Yukon to British Columbia.
• Northern British Columbia to Southern British Columbia.
• The Northwest Territories to Alberta.
• The Northwest Territories to Saskatchewan.

In contrast, clean power and investment flow northward in return. A complementary west-east corridor linking B.C.’s clean electricity with Alberta’s industrial base can further boost the capital competitiveness of cleantech manufacturing.

Together, these flows create a full-loop ecosystem centred on circularity, clean technology and regional synergy.

“To succeed, this strategy must be supported by effective coordination among governments, industry, academia and Indigenous communities,” the report notes.

Amid rising geopolitical and trade tensions, Canada should move beyond passive resource exports and proactively strengthen its trade position by processing its natural wealth domestically, according to the report.

The value proposition of more rapidly integrating the West and the North into this evolving national value chain is robust and compelling, with numerous benefits for Canada, including:

• Enhancing Indigenous Economic Reconciliation: All roads to an integrated value chain for critical minerals and batteries pass through Indigenous lands and it is imperative that the country leverage this generational opportunity to pursue economic reconciliation.
• Increasing Economic Productivity: A supercharged critical minerals and battery value chain in Western and Northern Canada can help the country get its economy back on the right track with projects that create long-term economic wealth for the country, with upstream mining and midstream processing sectors ripe with innovation potential and high-paying jobs.
• Minimizing Social, Environmental and Climate Impacts: In contrast to the emissions- and waste-intensive mining and processing taking place in other parts of the world, Canada can help raise climate and environmental standards for this global sector. By building a midstream processing sector the region can incentivize a demand-side draw for valuable post-consumer materials, versus having to export these recovered metals, chemicals and black mass, and thereby enhance Canada’s national circular economy competitiveness.
• Strengthening Supply Chain Security: With an increasing over-concentration of critical mineral production and processing in a select few countries worldwide, Canada’s supply chain and businesses are vulnerable to trade war action. Onshoring this production and processing of the fundamental building blocks of Canada’s economy decreases dependence on foreign actors.
• Enhancing Sovereignty and Supporting Healthier Communities in the North: Building out Canada’s northern transportation networks and wealth-generating economic capacity through triple-use infrastructure ( community, industrial and military) not only builds healthier northern communities, but also projects Canadian northern sovereignty at a time of increased great power competition in the Arctic.
• Stimulating Industrial Innovation and Specialized Expertise: Establishing a more integrated supply chain entails developing what could be considered Western-world leading expertise in advanced metallurgical and chemical processing, fostering innovation in higher-tech applications, and likely leading the world in terms of emissions- and waste-reduction processes, technologies and expertise in the chem-tech sector. Developing the region’s midstream processing capacity can ultimately increase the technological capabilities of Canada’s materials sector and develop specialized knowledge that can be exported to partner nations. Developing and nurturing this integrated value chain requires a long-term perspective and government leadership in identifying, selecting, and appropriately supporting catalytic projects to move forward.

Says the report: “With thoughtful planning and strategic project origination, Western Canada can establish a globally competitive battery supply chain that is rooted in sustainability, regional diversity, and economic strength.” Battery Metals Association of Canada

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Enhanced bilateral cooperation and new incentives required for Canada to supply critical minerals needed by U.S. defense industrial base

Canada is well positioned to supply many of the critical minerals needed by the United States and thereby contribute to North American national and economic security, according to a report by the Washington, D.C.-based Center for Strategic and International Studies (CSIS).

Canada has significant amounts of many of the world’s critical minerals, as well as a specialized labor force, mining companies, a favorable business ecosystem, and advanced democracy, human rights and governance standards, the report says.

“These could allow the scaling up of minerals exploration, extraction, processing, manufacturing and recycling.”

In addition, Canada has been part of the U.S. defense industrial base since 1993. Canada has also been an essential U.S. industrial partner during periods of heightened geopolitical tensions and global conflict.

“With enhanced cooperation and new incentives, Canada could be well poised to solve at least some of the critical mineral supply chain vulnerabilities the U.S. defense industrial base faces,” the report says.

According to the results of a series of CSIS wargames, the U.S. would likely run out of some weapons, such as long-range precision-guided munitions, in less than a week in the event of a confrontation with China over Taiwan, the report notes.

Given this reality, rebuilding the U.S. defense industrial base for deterrence – or, if necessary, to effectively fight a conventional great power war – means securing enough critical minerals domestically and from stable, reliable partners and allies to avoid the chokehold China has on these minerals.

Gallium, niobium, rare earth elements, cobalt, and tungsten are found or are already produced in appreciable quantities in Canada, “making them prime targets for increased bilateral cooperation.”

Neo Performance Materials, headquartered in Toronto, is currently the only gallium producer in North America, with a facility located in Peterborough, Ont. where it uses recycling to retrieve the metal.

But Canada has the potential to produce considerably more of the metal, especially given the country’s long history of aluminum production, the report says.

As part of a research and development program, mining company Rio Tinto is assessing the potential for extracting gallium from alumina tailings at its refinery in Saguenay–Lac-Saint-Jean, Que.

The company hopes to begin producing 3.5 tonnes of gallium per year, which could rise to 40 tonnes annually once a commercial-scale plant is constructed. This would represent five to 10 percent of current world gallium production.

When it comes to niobium, Canada follows Brazil as the world’s second-largest producer, with 10 percent of global production.

The Niobec mine in Quebec, owned by Magris Resources, is Canada’s sole producer at the moment. It is a vertically integrated manufacturing facility and produces different grades of ferroniobium that it sells directly to steel producers worldwide alongside niobium-zirconium alloy wire.

Canada also has several untapped reserves of niobium, with various mining projects at different stages of development.

These include Taseko Mines’ Aley Project in northeastern British Columbia, which, according to the company, is one of the largest undeveloped niobium deposits in the world and could produce over 10 percent of global niobium output.

Other projects include the two NioBay Metals projects (at James Bay in northern Ontario and Crevier in Quebec) and the Prairie Lake project in Ontario, owned by Nuinsco Resources.

There is also Auking Mining’s Myoff Creek project in south-central British Columbia, which has rare earth oxides and is in an exploration stage, despite being a site of interest for 40 years.

Canada also holds some of the largest reserves of rare earth elements (REEs) in the world and is expanding its ability to process these.

The Saskatchewan Research Council recently constructed the Rare Earth Processing Facility near Saskatoon and is using state-of-the-art Canadian automated technology in metal smelting to produce REEs.

Once fully operational in early 2025, the facility will produce approximately 400 tonnes per year of neodymium and praseodymium metals for the production of rare earth magnets, enough to build 500,000 electric vehicles.

The Saskatoon facility is the only one in North America producing REEs at a commercial scale and one of only seven outside of Russia and China.

In addition, two other REE commercial-scale demonstration facilities are active in Quebec. The Sorel-Tracy scandium demonstration plant, built by Rio Tinto, is producing high-purity scandium oxide, making it the first North American producer of this critical mineral.

The other facility is the Saint-Bruno-de-Montarville rare earth recycling demonstration plant outside of Montreal, owned by Geomega, which is a scalable and sustainable means of recycling up to 4.5 tonnes of waste rare earth metals from magnets destined for scrapyards or landfills.

Canada has the third-largest global reserve and is the world’s fourth-largest producer of cobalt, but that production represents only 2.2 percent of global output.

The U.S. Department of Defence (DoD) recognized the importance of Canada as a greater potential source of cobalt production when it awarded $6.4 million to Fortune Minerals in May 2024 through the Defense Production Act.

Fortune Minerals is building the vertically integrated NICO cobalt-gold-bismuth-copper project, including a mine and a mill in Canada’s Northwest Territories, which will produce a bulk cobalt concentrate for shipment to a refinery that the company plans to construct in Alberta.

The DoD in August 2024 also awarded $20 million to Electra Battery Materials to complete an industrial-scale hydrometallurgical plant and establish production of cobalt sulfate at the company’s facility in Temiskaming Shores, Ont.

The hydrometallurgical facility will be the only facility of its kind in North America, supplying cobalt sulfate to the electric vehicle market, but it could also meet defense industrial needs. Another project that has received support from the Canadian government, the Ontario government, and Vale Energy Transition Metals is the Mining Innovation Rehabilitation and Applied Research Corporation project, which seeks to recover nickel and cobalt from mine tailings from Vale and Glencore mines near Greater Sudbury, Ont.

Canada also is home to the Mactung Project in Canada’s Northwest Territories and Yukon, the world’s largest high-grade tungsten deposit. Its owner, Fireweed Metals, is conducting technical and environmental studies before beginning operations in the coming years.

In December 2024, the U.S. DoD announced a $15.8 million grant to accelerate the development of the project by performing metallurgical test work, conducting a feasibility study, and completing other activities necessary to support a construction decision.

Meanwhile, the Sisson tungsten-molybdenum project in New Brunswick is closer to getting shovels in the ground. The project’s owners have engaged with First Nations since 2010.

The project’s owners, Northcliff Resources and the Todd Corporation, are currently focused on obtaining construction and operating permits, offtake agreements and project financing, and they hope to begin construction in December 2025.

The report makes several policy recommendations:

1. Establish a Canadian DPA Title III.

The first step to closer U.S.-Canada alignment should be establishing a Canadian financing instrument for defense-critical minerals akin to DPA Title III.

The DPA is a U.S. law that empowers the federal government to mobilize resources from the private sector to serve exigent national security needs. Title III of the act is principally an investment program, which the U.S. government can employ to catalyze projects that “create, maintain, protect, expand, or restore” industrial base activities.

At present, the DPA has allocated approximately $63.4 million to five critical minerals projects in Canada, with the Canadian government putting up roughly $35.9 million in matching funds.

A Canadian DPA Title III would not require paying the whole cost of a new mine or processing facility but merely require signalling a government stake in the project and letting private sector investment make up the rest.

2. Include a Critical Minerals Chapter under the USMCA.

The United States-Mexico-Canada Agreement (USMCA), signed in 2018, includes a provision for a review process to occur by July 2026, during which each of the three participating countries is supposed to signal its intention to continue with the agreement or not.

One area of expansion could be a new USMCA chapter on critical minerals that addresses financial support from governments to open new mines and processing facilities, expedites permitting for mineral projects, coordinates action to stabilize prices, and incentivizes long-term investment in the sector.

3. Develop patient capital for mining investment.

Locking in North American critical minerals security requires cultivating an investment environment prepared to offer sustained backing as companies navigate the “valley of death” of launching a new minerals project.

Loan-guarantee programs offer one opportunity to build this kind of patient capital.

The U.S. Export-Import Bank and Export Development Canada can work together to devise realistic loan guarantees depending on the criticality of a particular mineral project, reducing the chances that the bottom falls out from beneath new mining projects before they can begin production.

4. Incentivize public and private sector stockpiling.

Stockpiling is a key mechanism through which the U.S. and its allies can insulate themselves from coercive minerals diplomacy.

The U.S. and Canadian governments could consider financial incentives like tax breaks for minerals purchased but not consumed by companies in a given year. Consideration should also be given to creating a Canadian strategic stockpile of defense-critical minerals.

5. Increase bilateral cooperation to identify priority projects.

The Canada-U.S. Joint Action Plan on Critical Minerals, launched under the first Trump administration, could be strengthened in important ways.

First, both countries should acknowledge the unique challenges of mineral supply for defense industrial purposes, in addition to conversations around energy transition requirements and advanced technology.

Second, a more thorough undertaking should be launched between the two countries to map and identify priority geologies and projects on both sides of the border to meet their respective mineral demands.

6. Invest in enabling infrastructure for mining.

Particularly in Canada’s northern and Arctic regions, historical underinvestment has left these areas with a paucity of core infrastructure.

This not only hinders mining activity but also jeopardizes Canadian security and sovereignty in the high north, as acknowledged in Canada’s Arctic defense strategy.

Mining could provide one solution, as new projects help lay the groundwork for a stronger northern logistics network that can support both local economies and military operations, should the need arise.

While the Canadian government has committed about $152 million over 20 years to Arctic defense infrastructure development, channeling support to bring down the costs of enabling infrastructure at mining sites in the high north could yield even faster gains.

Canada should also strengthen mechanisms for participation by local, especially Indigenous, communities in the vicinity of proposed mining projects to ensure these populations can tap into the benefits of new infrastructure investment. Center for Strategic and International Studies

THE GRAPEVINE

 Joëlle Pineau, associate professor in McGill University’s School of Computer Science and former vice-president of AI research at Meta, joined the board of Laude Institute, a new US$100-million fund for AI researchers. Laude is owned by Andy Konwinski, computer scientist and co-founder of Databricks and Perplexity. In addition to Pineau, the board includes University of California Berkeley professor Dave Patterson (known for a string of award-winning research) and Jeff Dean (known as Google’s chief scientist). Joëlle Pineau’s LinkedIn post

Calgary-based geothermal company Eavor Technologies announced that CEO John Redfern is stepping down for “personal reasons.” Redfern, an eight-year company veteran and co-founder, will continue his association with Eavor in a strategic advisory role. The company named Robert Winsloe, a co-founder of Eavor who’s currently serving as executive vice-president origination, as interim CEO while the company conducts a search for a successor. Eavor Technologies

Joel Blit, professor of economics at the University of Waterloo, announced the launch of the Canadian AI Adoption Initiative (CAIAI). The CAIAI brings together experts and organizations around the singular goal of promoting widespread AI adoption to ensure Canada’s future prosperity. The CAIAI is a partnership between the University of Waterloo, the Centre for International Governance Innovation, and the Centre for the Study of Living Standards. The CAIAI’s objectives  are:

• Develop ideas and policies to foster adoption based on the best available evidence.
• Develop metrics to track progress in AI adoption.
• Partner with other organizations to roll out initiatives that foster adoption.

The founders of the new organization set out 10 recommendations to enhance Canada’s AI adoption strategy. Canadian AI Adoption Initiative 

Lucy Hargreaves was appointed as the CEO of Build Canada, a policy platform supported by tech and business leaders, aimed at scaling its scope and support. Hargreaves will leave her position as head of corporate affairs at San Francisco-based Patch to join Build Canada. Build Canada co-founder Daniel Debow will serve as the board chair. Build Canada’s goal is to make Canada the most prosperous country through open-source policy projects and funding Canadian initiatives. This includes promoting AI adoption, introducing a visa for innovators and increasing energy production. The organization has published over 30 policy memos and its expansion aims to foster local, provincial and municipal projects. Startup Ecosystem Canada

The Global Institute for Food Security (GIFS) at the University of Saskatchewan named Dr. Karen Churchill, PhD, as its new chief scientific officer. Churchill, an accomplished leader in Canada’s agriculture and food sector, comes to GIFS from Ag-West Bio, where she has served as president and CEO since 2019. Over the next few months, Churchill will work with Ag-West Bio on a transition plan before joining GIFS full time. In previous roles, she has held positions with Cereals Canada, Cargill Malt, and Mars UK. Farms.com

Ottawa-based Calian Group Ltd. announced that Chris Pogue will join the company as resident, defence & space, effective July 7, 2025. Calian is a mission-solutions company focused on defence, space, healthcare and strategic growth critical infrastructure sectors. In this newly created role, Pogue will lead a high-performance organization that brings together Calian’s Advanced Technologies and Learning business units – leveraging the synergies of its communications and manufacturing solutions alongside its immersive training and simulation expertise to accelerate mission success for defence and space customers alike. Pogue brings over 20 years of senior executive experience, most recently serving as president and CEO of Thales Canada. Calian

John van der Eerden is the new president of the Ottawa-headquartered Canadian Water Resources Association (CWRA). The appointment is part of six-year term, with two years as president-elect, two years as president, and then two years as past-president. Van der Eerden is vice-president, water resources at Vancouver-based Associated Engineering. He succeeds Jeff Hirvonen who is now CWRA’s past-president. Jean-Luc Martel is the new president-elect. CWRA

EQB Inc., the parent company of Equitable Bank, announced the unexpected death of Andrew Moor, the company’s president and CEO. At the time of his death at age 65, Moor, who is believed to have had a heart attack, was the longest serving bank CEO in Canada. EQB’s board of directors activated its emergency succession plan and named Marlene Lenarduzzi as interim president and CEO. Lenarduzzi was also appointed to the board of Equitable Bank and EQB. She  currently serves as the bank's chief risk officer and has more than 25 years of experience in risk management and banking strategy development, regulatory affairs, risk quantification, operations and execution. EQB

Trent University officially opened the Create Centre for Entrepreneurship, a new space in the university’s Bata Library that helps students from all disciplines develop their skills in leadership, creativity and problem-solving. The centre provides inclusive programming that removes traditional barriers that often limit access only to students with pre-existing business ideas. The centre will serve as a connector between students and faculty, existing programming and services at Trent, as well as the business sectors in both Peterborough and Durham. In addition to skill-building and mentorship, students will gain access to networking opportunities, hands-on experiences and curated programming. Trent University

 Saskatchewan Polytechnic (Sask Polytech) received a $1-million gift from the Malcolm J. Jenkins Family Foundation in support of the Joseph A Remai Saskatoon Campus. The donation will help create culturally welcoming spaces that support Indigenous student success and foster a strong sense of belonging. As part of Sask Polytech’s Time to Rise campaign, the donation will fund efforts to consolidate the institution’s older buildings into a modern, technology-rich learning environment. Jenkins, a well-known philanthropist and retired Canadian Tire dealer, is recognized for his deep commitment to community development, particularly in the City of Prince Albert. He operated the Canadian Tire store there for 44 years before retiring at age 80. SaskPolytech

Castlegar, B.C.-based Selkirk College has balanced its budget for the 2025-26 academic year by closing a $9-million  revenue gap through a variety of efforts. These include program suspensions, hiring changes, voluntary workforce reduction opportunities, spending restrictions and strategic space utilization. These changes include a reduction in Selkirk’s workforce by 43 full-time equivalent positions. Rossland News reported that the budget reflects the drop in international student enrolment stemming from a reduction in study permits and changes in program eligibility for post-graduation work permit. Before the cuts began, there were about 760 international students enrolled at Selkirk College. That number is projected to decrease by 55 percent for the 2025-26 school year. Selkirk College

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