VAUGHAN — The Ontario government is launching a new $500 million Critical Minerals Processing Fund to accelerate the province’s capacity to refine and process critical minerals — a move the Ford government says is central to protecting Ontario’s economy from global instability and foreign tariffs.
Announced as part of the 2025 Budget, the fund will support both the expansion of existing mineral processing facilities and the construction of new ones, aiming to ensure that minerals mined in the province are also processed in Ontario by Ontario workers. The initiative complements broader efforts to develop a made-in-Ontario critical minerals supply chain, particularly targeting deposits in Northern Ontario and the Ring of Fire.
“Our plan to protect Ontario includes building a strong, self-reliant economy,” said Finance Minister Peter Bethlenfalvy. “With this fund, we’re securing good-paying jobs and building resilient communities for the future.”
Our government is unleashing Ontario’s economic potential by investing $500 million in a new Critical Minerals Processing Fund.
This fund will create good-paying jobs while ensuring a stable supply of Ontario-sourced critical minerals for our province’s strategic industries. pic.twitter.com/2glgRDOxSt
— Peter Bethlenfalvy (@PBethlenfalvy) May 29, 2025
Supporting Northern Ontario and Protecting Jobs
The fund is part of the government’s broader push to link the province’s mineral-rich north with the advanced manufacturing base in the south — notably in the auto sector, where demand for materials like nickel, cobalt and lithium is surging due to the electric vehicle transition.
Economic Development Minister Vic Fedeli called the announcement a direct investment in Ontario workers:
“This fund will strengthen our province’s critical mineral supply chain and keep Ontario workers in high-value jobs, now and for generations to come.”
Energy and Mines Minister Stephen Lecce echoed that message, emphasizing a shift away from exporting raw materials:
“We’re putting an end to the ‘ripping and shipping’ of our resources. This is about value-added jobs and a self-reliant future for Ontario.”
Indigenous Partnerships and Economic Reconciliation
The fund also builds on Ontario’s $3.1 billion in planned loans, grants, and scholarships supporting Indigenous participation in the mining sector. That includes equity partnerships and capacity building through the Indigenous Opportunities Financing Program and the Indigenous Participation Fund.
The Ontario Mining Association praised the fund as a major step forward for sustainable development and economic inclusion:
“These measures position Ontario to lead globally in mineral development,” said OMA President Priya Tandon. “We look forward to working closely with the government to deliver lasting benefits for all Ontarians.”
A Cornerstone of Ontario’s Economic Plan
The Critical Minerals Processing Fund follows recent legislation proposed under the Protect Ontario by Unleashing Our Economy Act, 2025 and the Protect Ontario Through Free Trade Within Canada Act, 2025, aimed at removing regulatory and trade barriers that hinder infrastructure and resource development.
Ontario’s 2025 Budget, released earlier this month, outlines a sweeping economic strategy focused on competitiveness, resilience, and domestic production across sectors.
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