Canada’s 2022 Critical Minerals Strategy represents a pivotal move to position the country as a global leader in the responsible sourcing and production of materials essential for clean energy technologies. As the global demand for electric vehicles and renewable energy storage solutions surges, the strategy focuses on strengthening the transparency, security, and sustainability of battery supply chains. Among its core requirements is the obligation for battery pack assemblers and other downstream manufacturers to disclose the origins of battery precursors such as lithium, cobalt, nickel, and graphite. This measure is designed to combat environmental harm, human rights violations, and geopolitical risks associated with mineral extraction and processing.
The strategy establishes a framework through which Canadian firms must map and report the upstream pathways of critical minerals used in their products. This includes identifying the mines and processing facilities from which battery precursors are sourced and verifying that these suppliers adhere to recognized environmental, social, and governance (ESG) standards. By requiring disclosure of mineral origins, the policy seeks to ensure that Canada’s growing battery sector contributes to ethical and sustainable global supply chains. This approach aligns with international initiatives such as the Global Battery Alliance’s Battery Passport and responds to increasing consumer, investor, and regulatory demands for supply chain due diligence.
A key resource for meeting these transparency obligations is the open mineral occurrence data published by Natural Resources Canada (NRCan). This dataset provides detailed information on known lithium, cobalt, nickel, and graphite deposits within Canada and beyond, including mine ownership, production status, and environmental permits. Battery pack assemblers can use this data to cross-check supplier declarations regarding the origin of battery precursors. For example, if a supplier claims that lithium originates from a Canadian mine, assemblers can verify whether that mine appears in the NRCan dataset and whether it holds the necessary permits and certifications. This level of cross-referencing helps reduce the risk of relying on materials linked to unpermitted extraction, environmental degradation, or unethical practices.
To operationalize this data in procurement workflows, battery manufacturers should begin by building a comprehensive supplier database that lists all upstream entities involved in their battery precursor supply chains. This database should capture information on mine locations, ownership structures, certification statuses, and any publicly available ESG ratings. Once assembled, the database can be integrated with NRCan’s mineral occurrence data, either through direct downloads of the open dataset or by leveraging available APIs. This integration enables automated checks of supplier claims and facilitates the identification of potential gaps or inconsistencies that may warrant further due diligence.
In addition to using open data resources, Canada’s Critical Minerals Strategy encourages the deployment of advanced technologies to enhance supply chain traceability. One such technology is blockchain, which offers an immutable, distributed ledger for recording transactions and movements of materials across the battery value chain. Battery pack assemblers can design blockchain-based registries that record the transfer of battery precursors from mines to smelters, cathode manufacturers, and ultimately to pack assembly facilities. Each transaction can include key attributes such as the identity of the supplier, material type, batch number, certification details, and transport documentation. This creates a tamper-resistant chain of custody that regulators, customers, and other stakeholders can audit in real time.
Building an effective blockchain registry for battery traceability involves several key steps. First, assemblers must define the data schema, determining which attributes are essential for compliance and transparency purposes. This might include mine ID, processing plant ID, transaction date, material weight or volume, and ESG certification references. Next, assemblers should select a blockchain platform that supports interoperability and scalability, ensuring that the system can integrate with existing enterprise resource planning (ERP) software and accommodate future supply chain partners. Permissioned blockchain frameworks such as Hyperledger Fabric are commonly chosen for supply chain applications because they balance transparency with the need to protect commercially sensitive data.
Once the platform is in place, assemblers can work with suppliers to onboard them into the blockchain network. This process involves assigning digital identities to each supplier and providing training on how to input transaction data accurately. To encourage supplier participation, assemblers may offer incentives such as preferred supplier status or faster payment terms for compliant partners. Over time, the blockchain registry can be linked with external datasets such as NRCan’s mineral occurrence data or international certifications to further strengthen the credibility of supply chain records.
Early adopters of these traceability practices are already seeing positive outcomes. Battery manufacturers report improved confidence in their supply chains, better alignment with ESG investment criteria, and stronger relationships with automakers and other customers seeking verifiable responsible sourcing. Furthermore, the use of blockchain registries and open data is positioning Canadian battery producers at the forefront of global efforts to create ethical, transparent energy storage supply chains.
Canada’s Critical Minerals Strategy underscores the nation’s commitment to building a battery sector that is not only economically competitive but also socially and environmentally responsible. By leveraging open mineral occurrence data and advanced technologies such as blockchain, battery pack assemblers can meet disclosure requirements, enhance supply chain integrity, and contribute to the broader goal of a just and sustainable energy transition.