As climate change intensifies, companies and countries are attempting to build new low-carbon supply chains. From electric vehicles to solar panels and wind turbines, these technologies require vast amounts of critical minerals.

These are commodities such as cobalt, lithium and nickel, and also include a smaller set of 17 rare earth elements like dysprosium, neodymium, praseodymium and terbium.

Canada’s federal government, and provincial officials in Ontario, have pledged some of the biggest public subsidies to private companies in a generation — more than $43 billion — to create this new supply chain.

Plans for new mines in Northern Ontario’s “Ring of Fire” to extract critical minerals parallel billions in production subsidies to EV producers and related manufacturers in the province’s southern manufacturing heartland.

The idea is to supply southern factories with northern minerals. Instead of only exporting unrefined primary commodities like oil, copper or lumber, Canadian industry would also export high-value, renewable technology-related products.

In addition to promises around jobs, innovative industries and fighting climate change, politicians, business executives and military analysts frame the country’s critical minerals strategy around countering China’s dominance.

However, our new study identified several challenges to subsidizing supply chain integration in Canada.

Based on 20 interviews with government officials and industry leaders in Ontario’s critical minerals sector, and a review of existing literature, we identified challenges including:........

© The Conversation