Canada’s newly unveiled defence industrial strategy could unlock opportunities for the country’s mining and critical minerals sectors, as policymakers look to strengthen national security while reinforcing domestic supply chains.

Ottawa-based industry coalition New Economy Canada said this week that the federal commitment to a modernised defence framework had the potential to transform Canada’s manufacturing, resources, electricity and supply chain industries.

The group, comprising business, Indigenous and labour organisations, argues that defence spending, if structured strategically, can serve as a catalyst for domestic production of critical minerals, low-carbon metals and advanced materials that underpin both military capability and clean-energy technologies.

“Today’s announcement isn’t just about responding to conflicts abroad, it’s about protecting our home, our economy, our businesses and our workers,” said president Merran Smith.

“Canada’s new defence industrial strategy represents a generational economic opportunity to enhance national security, energy security and security of our supply chains,” she said.

New Economy Canada highlighted that defence manufacturing relies on the same critical minerals required to scale clean technologies, including battery metals and advanced materials used in electrification, communications and infrastructure.

By aligning defence procurement with domestic sourcing, the federal government could provide long-term demand certainty for Canadian producers of low-carbon steel, aluminium, cement and critical minerals. Such procurement signals would help derisk investment in new mines and processing capacity, while reducing exposure to global trade disruptions.

“By taking a dual-use approach, we can leverage defence investments to accelerate innovative clean tech, battery technology and materials innovation, powered by clean, abundant and affordable electricity,” Smith said.

The organisation also called for closer alignment between the defence strategy and Ottawa’s recently announced automotive plans and forthcoming federal electricity strategy.

Linking these frameworks, it said, would expand opportunities beyond traditional defence contractors by encouraging civilian innovation, commercialisation and competitiveness in parallel with military investment.

A modernised electricity grid – including expanded transmission, storage capacity and reliable power for northern and Arctic communities – was identified as critical to supporting defence-related industrial growth. Electrified defence manufacturing and infrastructure could, in turn, drive demand for batteries, grid solutions and clean power technologies that support broader industrial decarbonisation.

“While the focus of today’s announcement is on the defence industrial strategy, linking it with the recently announced automotive  and forthcoming electricity, strategies will provide wide-ranging opportunities beyond the traditional defence sector by driving civilian innovation, commercialisation and competitiveness at the same time,” Smith said.