Canada Snubs Silver as a Critical Mineral Amid Supply Crunch

Silver prices recently hit an all-time high of US$92 an ounce, with industry leaders dubbing it the "next generational metal." The rally is fueled by surging demand from the green energy transition, electrification, and data centers, all happening against the backdrop of a persistent supply deficit.

Despite holding some of the world's richest silver deposits, Canada does not consider the metal a strategic priority and has excluded it from its official critical minerals list.

Silver Booms, But Canada's Official List Excludes It

Industry experts are questioning Ottawa's decision. "I think it would be short sighted of them to leave it off," said Michael DiRienzo, president and CEO of the Silver Institute, a global industry organization.

Canada’s Natural Resources Department defends its list of 34 critical minerals as the "foundation" for modern technology and a green economy. The department explicitly stated that silver was left off because it "does not meet Canada's definition of a critical mineral as there is a robust global supply of silver, and its supply chain is not threatened."

DiRienzo directly challenges this assessment, pointing to a projected global market shortfall of 95 million ounces this year. "The amount of silver coming to the market is less than what our demand requirements are," he explained.

Because silver is often produced as a byproduct of mining for other metals like gold, copper, and nickel, its exclusion from Canada's list means it lacks the strategic focus and policy support given to other materials essential for electrification.

Figure 1: Canada's official list of 34 critical minerals, which notably excludes silver despite its growing industrial applications.

Industry Leaders Push Back, Citing U.S. Precedent

The debate is intensifying, especially since the United States added silver to its own critical minerals list in November of last year. DiRienzo argues that Canada should follow this move, which he says "formally recognized silver's transformation from primarily a precious metal into a strategic industrial commodity."

The metal's industrial importance is undeniable. A report from the Silver Institute highlights that global information technology capacity has expanded by over 5,000 percent in the last 25 years. As DiRienzo puts it, "Anything that has an on-and-off switch has silver inside of it."

Canadian Miners Formally Lobby for Silver's Inclusion

Canadian mining executives are actively pressing the government for a policy reversal. Last year, First Majestic Silver and around 20 other industry leaders sent an open letter to the Ministry of Energy and Natural Resources urging the reclassification of silver.

The letter pointed out that while Canada was the 13th-largest global silver producer in 2022 and the second-largest supplier to the U.S., its domestic output has fallen over the last decade due to declining ore grades and aging mines.

The group argued that silver meets all three of the government's own criteria for a critical mineral:

• Essential to Canada's economic or national security

• Required for the transition to a low-carbon and digital economy

• Positions Canada as a strategic global partner

The letter also contested the government's supply assumptions, citing a massive 237.7 million-ounce market deficit recorded in 2022. Canada's critical minerals list, last updated in 2024, is reviewed every three years.

A Flawed Strategy? Questioning the "Critical" Label

However, not everyone believes that adding silver to the list is the solution. Jack M. Mintz, a public policy analyst at the C.D. Howe Institute, suggests the entire focus on designating "critical" minerals may be misguided.

"I really think this whole focus on critical minerals is wrong," Mintz said, noting that mining deposits often contain multiple minerals, making it impractical to apply separate policies to each one. He expressed concern about the risks of governments picking winners and losers in the sector.

"I always get a little bit worried when governments are taking winners and losers," Mintz stated. "We're still doing that, and I think that's one of the political problems that we're going to be creating as a risk."

The Dual Appeal: Why Investors Are Watching Silver

For investors, silver's profile is rising. According to Brooke Thackray, a research analyst at Global X, silver is emerging as a top metal to watch heading into 2026.

Its appeal is twofold. "Not only is it a critical mineral needed to produce EV cars, solar panels, all that sort of stuff, but at the same time, it's also an investment vehicle," Thackray explained.

He added that because silver production is tied to other metals, its supply cannot ramp up quickly to meet rising prices, even as demand continues to climb. This dynamic creates a unique investment case. "So it's sort of like a little bit of a diversification," said Thackray.