Canada’s Natural Resources Minister, Tim Hodgson, says the government is not alarmed by the US taking minority stakes in Canadian critical minerals companies, describing the moves as “capitalism in action” rather than a threat to national interests.

Speaking at a virtual press briefing from London on Thursday, Hodgson said Canada retained tools to protect its economic and national interests but viewed allied investment as part of a healthy market dynamic.

“I think you’re referring to the minority investments – a small minority investment in each of Trilogy and North American Lithium,” Hodgson said in response to a journalist's question about recent moves by the Trump administration.

“Those companies’ assets are in the United States. So, the fact that an ally of ours chooses to make an equity investment into a Canadian company whose sole asset is in the United States, I don’t think that bothers us at this time. I think that’s capitalism in action.”

He added that if a foreign investment were “not in a net benefit to Canada", Ottawa had the tools under the Investment Canada Act to intervene.

Hodgson stressed that Canada remained focused on building a collaborative framework with allies – not escalating disputes. “Our two countries have been allies for many, many, many years,” he said. “We have had our trade frictions at various points. We are very hopeful that we can get through this difficult time and resume the type of relationship that we’ve had with the Americans for a long, long time.”

He noted that 85% of Canadian exports to the US still cross the border tariff-free, “better than any other country in the world".

G7 CRITICAL MINERALS ALLIANCE
Hodgson’s remarks followed three days of meetings in London aimed at strengthening Canada’s energy and resource partnerships, particularly with the UK. He announced that the G7 Critical Minerals Alliance is now “fully operational", following the appointment of envoys from all member nations.

“I was honoured to meet my counterpart, Chris McDonald, Minister of Industry in the Department of Energy, Security and Net Zero, who was just appointed as the United Kingdom’s Special Critical Minerals Envoy,” Hodgson said. “That means now all seven G7 countries have officially named their envoys.”

Canada’s envoy, Isabella Chan, will work alongside counterparts from France, Germany, Italy, Japan, the UK, and the US to “diversify supply to counter non-allied dominance of certain critical minerals, attract investment and secure democratic, market-based supply chains".

Hodgson said the alliance’s activation sends “a strong signal of serious action being taken to anticipate critical mineral shortages, coordinate responses to deliberate market disruption, and diversify and onshore mining, processing, manufacturing, and recycling where possible".

The G7 Critical Minerals Action Plan and Critical Minerals Production Alliance, announced in June at the G7 Leaders’ Summit in Kananaskis, Alberta, represent a shared commitment by G7 partners to diversify the responsible production and supply of critical minerals, encourage investments in critical mineral projects and local value creation and promote innovation.

CHINA’S EXPORT CONTROLS
Asked about China’s recent export controls on rare earth elements, Hodgson said a coordinated G7 response could include measures such as stockpiling agreements, offtake commitments, or price floor mechanisms to stimulate production in allied countries.

“The Canada Growth Fund has the opportunity to invest in preferred or common equity, if that’s something,” he said. “All of those proactive tools could be used to stimulate the demand of those critical minerals and the processing of those critical minerals in Canada, or in allied countries.”

Hodgson will host his G7 counterparts later this month in Toronto for the G7 Energy and Environment Ministers’ meeting, where discussions are expected to focus on strengthening democratic supply chains, coordinating investment, and ensuring resilience against resource coercion by non-allied nations.

“This trip made clear that our partners see Canada as a reliable, ambitious supplier of the resources and innovation the world needs,” Hodgson said. “From critical minerals to nuclear energy, we are strengthening alliances, securing investment, and creating opportunities that will deliver jobs and prosperity for Canadians while building more resilient democratic supply chains for all our allies.”