**Toronto**: The PDAC 2025 event highlighted the critical minerals industry’s evolution, featuring major investments and international partnerships against a backdrop of trade tensions. Key discussions focused on bolstering the sector amid rising demand for minerals essential for the energy transition and geopolitical strategies.
PDAC 2025 has catalysed a transformative phase in the critical minerals sector, characterised by heightened energy and participation from Silicon Valley investors and a younger demographic. The event, which took place in Toronto, brought together key industry figures and stakeholders to discuss pivotal minerals such as gold, copper, nickel, lithium, and rare earths, as well as the newly extended Mineral Exploration Tax Credit, essential for bolstering investments in exploration and development.
Tracy Hughes of the Critical Minerals Institute observed the evolution of PDAC into a significant global platform for resource industry collaboration. “It’s exciting to see such a diverse range of attendees this year, reflecting the growing importance of critical minerals,” said Hughes. Influential leaders such as Dr. Doris Hiam-Galvez advocated for investment-friendly policies that could enhance the branding and investment landscape of these essential minerals. Discussions emphasised the need for strategic positioning to cater to the rising demand for critical minerals, which are increasingly recognised for their role in global economic and security strategies.
In conjunction with these discussions, significant corporate milestones were achieved in the sector. Rio Tinto PLC completed its $6.7 billion acquisition of Arcadium Lithium PLC, reinforcing its status as a leading producer in lithium, a mineral critical for the energy transition. This acquisition, now operating under the name Rio Tinto Lithium, is intended to bolster the company’s production capabilities, targeting over 200 thousand tonnes annually by 2028.
Lithium Americas Corp. also announced a strategic $250 million investment from Orion Resource Partners for its Thacker Pass lithium project, ensuring funding for its initial construction phase. This financial backing demonstrates ongoing confidence in the critical minerals market amid significant volatility in copper and aluminium prices, largely influenced by new U.S. tariffs on imports.
In a more geopolitical context, the Democratic Republic of Congo (DRC) has reached out to the United States, proposing a strategic alliance that could provide U.S. companies exclusive access to its critical minerals, such as cobalt and lithium. This proposal is positioned as a countermeasure against Chinese dominance in the mining sector and includes demands for military support from the U.S. against a Rwanda-backed rebellion. This initiative underlines the strategic and diplomatic significance of critical minerals in global supply chains.
Critical minerals have not only emerged as vital assets in trade dynamics but have also become bargaining chips in the Canada-U.S. trade war. Ongoing discussions between U.S. and Ukrainian officials highlight the role of these minerals in negotiations around supply chains. Ontario Premier Doug Ford has warned that Ontario may consider halting nickel and electricity shipments to the U.S. in response to impending 25% tariffs on Canadian goods. These tensions reflect the broader complexities surrounding resource control and trade relationships.
Further complicating the landscape, recent actions, including President Trump’s announcement of a 25% tariff on aluminium imports, have driven U.S. aluminium premiums to record highs and significantly impacted market dynamics. In an effort to mitigate backlash from U.S. automakers, Trump provided a one-month exemption from the new tariffs on imports from Mexico and Canada, although more significant economic confrontations are expected in the following weeks.
As the mining landscape evolves, with exploration firms increasingly seeking funding from alternative markets due to a decreasing number of listings on Canada’s stock exchange, the critical minerals sector stands at a crossroads. The commitment to investment through initiatives like the extended Mineral Exploration Tax Credit, alongside the global collaboration ignited at PDAC 2025, sets the stage for a potentially new era in critical mineral exploration and development.
Source: Noah Wire Services
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