Energy and Natural Resources Minister Tim Hodgson announced a $22-million investment to support battery research and production in Montreal on Friday, October 3, 2025. The Canadian Press
Energy Minister Tim Hodgson is preparing to unveil a new partnership aimed at securing critical minerals among G7 countries. According to a government source, the alliance will ensure that member nations have access to “transparent, democratic, and environmentally responsible” sources of vital minerals. The initiative forms a key part of Canada’s G7 strategy on clean energy and resource security.
In a keynote speech to the International Energy Agency, Hodgson called the move a “turning point” in global energy cooperation. “Energy markets are being reshaped by geopolitical conflict, technological revolutions and an accelerating drive towards net-zero,” he said.
Hodgson explained that global investors want stable and predictable conditions before funding large energy projects. “We are working with our provinces, territories, Indigenous partners, utilities and regulators to cut timelines without cutting corners,” he told the audience.
He said the government aims to create “regulatory certainty” by ensuring faster project approvals and clearer policies — one of three main levers in Canada’s clean energy plan.
Backing Carbon Removal Innovation
Hodgson also highlighted Canada’s growing investment in industrial decarbonization. The federal government recently supported a deal between Microsoft and Vancouver-based carbon removal company Arca. The company uses mineralization technology to capture carbon dioxide and lock it into rock.
Arca said the agreement will remove nearly 300,000 tonnes of carbon dioxide from the atmosphere over the next decade. “We repurpose mine waste from critical metal mining and turn that into a large-scale carbon sink,” said Arca CEO Paul Needham.
Hodgson described carbon removal as essential to achieving Canada’s climate goals. “These technologies allow us to tackle the hardest to abate emissions,” he said.
Private Investment Strengthens Climate Efforts
Climate tech organization NorthX also announced $3.4 million in new funding for four Canadian carbon removal startups. Formerly known as the BC Centre for Innovation and Clean Energy, NorthX launched in 2021 with joint support from the federal government, British Columbia, and Shell Canada. Each partner contributed $35 million to get the initiative off the ground.
NorthX Chief Operating Officer Todd Sayers said the company has since invested $45 million in over 70 projects, generating 870 jobs across the country. “For every dollar the Government of Canada has invested in NorthX, we’ve generated more than $30 in economic activity,” he said.
Montreal to Host Global Energy Conference
To further emphasize Canada’s leadership in clean energy, Hodgson announced that Montreal will host the 11th International Energy Agency Conference on Energy Efficiency. He described energy efficiency as “the first fuel” — the most cost-effective way to reduce emissions and boost growth.
“Every unit we save strengthens competitiveness, lowers bills, and eases pressure on our grids,” Hodgson said.
The new G7 alliance, coupled with Canada’s expanding investment in clean technologies, highlights the federal government’s commitment to leading global efforts toward a net-zero future.
