Lomiko Metals’ La Loutre graphite project in Quebec. (Source: Lomiko Metals)
For the first time, the United States and Canada are collaborating to support the development of critical mineral mines run by Canadian companies. This initiative aims to reduce their dependence on Chinese sources for minerals vital to energy transition technologies.
Lomiko Metals, a graphite exploration company (TSX: LMR), has received a total of $12 million in funding—$3.6 million from the Canadian government and $8.4 million from the U.S. government—to advance its La Loutre graphite project in southeastern Quebec.
Belinda Labatte, CEO of Lomiko, expressed excitement over securing these simultaneous funding opportunities from both countries. She noted that this support is beneficial for Quebec, Canada, and the United States as they enter the next phase of project studies. Labatte highlighted that the funding will bolster supply chain resilience and create job opportunities in Canada. The project is also expected to produce high-quality graphite for defense purposes and the growing North American electric vehicle (EV) market.
Another beneficiary of this government support is Fortune Minerals (TSX: FT), which previously secured funds in December and March to further its NICO project in the Northwest Territories. This project involves the extraction of cobalt, gold, bismuth, and copper.
The Canadian funding is part of a broader $2.8 billion (Cdn$3.8 billion) initiative for the critical minerals sector, announced in the federal government’s 2023 budget. Meanwhile, the U.S. funding comes from the Department of Defense under the Defense Production Act, which was enacted by President Joe Biden in 2022.
This financial backing for Lomiko and Fortune Minerals follows a recent move by Washington to impose significant new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum, and medical equipment.
