# Canada Launches Defence Industrial Strategy

Canada's federal government launched the Defence Industrial Strategy in 2026, backed by a $6.6 billion investment aimed at strengthening the domestic defence industrial base and securing critical minerals supply chains. This strategy is designed to create sustained government demand and innovative financing mechanisms that support critical minerals projects, directly benefiting mining companies aligned with defence priorities. Notably, Nouveau Monde Graphite secured a seven-year offtake agreement for 30,000 tonnes per year of natural graphite concentrate from its Matawinie mine in Quebec, supported by a $459 million senior secured debt facility, exemplifying the strategy's impact on financing and procurement.

- **Why this matters:** Procurement professionals should recognize the growing role of defence-driven demand in shaping critical minerals sourcing and financing in Canada.
- The strategy signals long-term government-backed purchasing commitments, creating stable market conditions for suppliers in the mining and materials sectors.
- Companies involved in critical minerals extraction and processing can leverage government contracts and financing frameworks to accelerate project development.
- Organizations should evaluate opportunities to engage with federal agencies such as Natural Resources Canada and the Canadian Armed Forces, which are central to implementing this strategy.

**Jurisdictions:** federal
**Industries:** Defense & Military, Energy & Utilities
**Topics:** Grants & Funding, Contracting Vehicles
**Published:** September 24, 2026

### Government Entities
- Natural Resources Canada (NRCan)
- Canadian Armed Forces
- Office of the Superintendent of Financial Institutions (OSFI)
- Major Projects Office

### Vendors
- Nouveau Monde Graphite (project developer)

### Key Quotes
> Canada is entering the most significant period of defence investment in decades, and the mining industry should start paying attention.
> — Marc Caroll Dupuis, Senior Defence Advisor, Arctech Accelerate

> We’re viewing defence spend as a major stopgap and a major opportunity.
> — Carla Potter, Partner, Cassels Brock & Blackwell LLP

> Once you get contracts in place, it does get a great deal simpler to attract at least equity financing and, in many instances, the support of debt financing.
> — Alison Manzer, Partner, Cassels Brock & Blackwell LLP

### Sources
- [The defence perspective ](https://magazine.cim.org/en/management/the-defence-perspective-en) - magazine.cim.org