What investments would you highlight from Investissement Québec’s portfolio over the last year?

I would first highlight our C$250 million investment in Nemaska Lithium in Q4 2024. Nemaska is among our largest investments, and this funding will support the project's construction in 2025, with a target for the project to become operational by the end of 2026. The Québec government intends to continue its support for the project and to maintain its 50% ownership through Investissement Québec. We have been involved since Nemaska’s restructuring in 2020 and have supported it through its acquisition by Livent, merger with Arcadium Lithium, and recent acquisition by Rio Tinto. We are confident in the partnership and comfortable with the project's development trajectory.

At Nouveau Monde Graphite (NMG), we have been investing in the project since 2017 and are optimistic that the company will finalize its project financing in 2025, with our support. In 2024, NMG established partnerships with GM and Panasonic, which align well with our strategy. In December 2024, Investissement Québec and the Canada Growth Fund (CGF) co-invested C$71 million in the project. 

How would you describe the mining investment environment in recent months?

Market dynamics were challenging in the early months of 2025. In the gold sector, even with record prices, some junior companies have found it difficult to secure adequate funding. In lithium, graphite, and other critical minerals, falling prices have similarly made capital raising difficult for certain companies. Nevertheless, there have been notable successes which have raised substantial funds. This indicates that investor interest in mining remains, and we are hopeful that over the long term, more capital will return to support Québec’s mining sector.

Have commodity price dynamics had any impact on your portfolio performance?

We have large investments in iron ore companies, so a decline in iron ore prices has affected the overall value of our portfolio. This is not a significant concern – our focus is not on short-term returns, but on long-term economic development. We remain confident in the sector’s long-term growth strategy in Québec.

Furthermore, while there have been short-term disruptions, long-term demand for battery raw materials is projected to continue rising. Although price volatility has impacted project development, supply and demand in the battery minerals sector are expected to remain broadly balanced for the next few years. From 2027-2028 onward, however, forecasts indicate the emergence of supply deficits, which will likely lead to rising battery metal prices. This presents a strong market opportunity for long-term investors such as Investissement Québec.

What is your take on consolidation across Québec’s mining sector?

We have seen mergers and acquisition in the market, notably in the lithium market. These movements are aligned with the broader trend of strategic positioning by leading mining companies. 

How could US tariffs impact Investissement Québec’s portfolio, and the Québec mining sector more widely?

Most of our investments remain in the development stage and so are not directly affected by tariffs. However, some projects plan to export their minerals or value-added products to the US. We hope that the US and Canadian governments will reach an agreement to avoid negative impacts on mining companies. Should exports of critical minerals to the US become more difficult, there is sustained demand in Europe and Asia, offering diversification options if necessary. For now, the outlook remains uncertain.

At the federal level, the recent extension to the refundable tax credit for mineral exploration is a welcome development. Greater federal engagement – through initiatives such as the Canada Growth Fund, Critical Minerals Infrastructure Fund, and support from agencies like Export Development Canada – is a clear advantage for Québec’s mining projects during these uncertain times.

That said, changes in US-Canada relations and the broader US tariff framework are having an indirect impact on commodity prices and the Canadian economy. This presents a clear challenge, but Investissement Québec’s strategy remains focused on supporting the continued development of these projects.

What are Investissement Québec’s priorities looking ahead?

Investissement Québec’s mandate is to support companies over the long term and drive economic development and job creation. Our focus is on maximizing value-added projects within an integrated Québec-based critical mineral and battery value chain. It has already yielded strong returns for both our investments and the broader economy – and it will remain our guiding approach moving forward.