Canada has a strategic uranium advantage. We should make the most of it

Using resources to the national advantage is not new to the Canadian government. In the late 1940s and 1950s, Canada leveraged its position and geography to deepen the economic integration between Canada and the U.S. Specifically, the government of Louis St. Laurent (1948-1957) struck a deal with the Eisenhower administration in 1951 that saw the vast majority of Canadian uranium sold to the U.S. for atomic energy production for a period of 10 years.1Archibald, J. (2025). Leveraging History to Reach Quantum 2030 Goals: What Policymakers Need to Know About the Nuclear Reactor at Chalk River, Ontario. International Journal: Canada’s Journal of Global Policy Analysis, 0(0). https://doi-org.proxy.queensu.ca/10.1177/00207020251393880 This deal facilitated close collaboration between Canadian and American political and industry leaders. An example of this symbiotic relationship in action can be seen in the Eisenhower administration providing financial and military support to the Chalk River nuclear reactor, “a prototype reactor constructed to prove that natural uranium and heavy water could be used to create and sustain nuclear fission” after it experienced an accident in December of 1952 which saw the partial meltdown of the NRX reactor core. Caused by a combination of mechanical failure and human error, the accident required both emergency and long-term clean-up efforts. The American government recognized the Chalk River site as significant to American nuclear production, so they helped the site recover as fast as possible as a result—including sending future President Jimmy Carter, then Lieutenant Carter, as part of the military clean-up crew. This uranium deal not only helped to solidify the Canada-U.S. relationship, but it also allowed for increased economic investment in Canadian nuclear technology and in nuclear research. During the 1960s, the federal government supported the domestic uranium industry by initiating a stockpiling program, which ended in 1974 because the federal government determined the domestic industry no longer needed the support. Under Pierre Trudeau’s leadership in the late 1960s, Canada signed on to the nuclear NPT. Promoting the peaceful use of nuclear technology, this shift changed the way that Canada and our allies could use uranium. After signing on to the NPT, Canadian uranium was not to be sold for use in generating nuclear weapons. The U.S., also a signatory of the NPT, is supposed to abide by the same rules. The focus shifted to nuclear power, nuclear medicine, and the research behind nuclear reactor technology. Canada remains committed to the NPT, but with emerging geopolitical instability, the question of nuclear weapons has returned to the conversation, as is the question of how the U.S. is fueling any potential nuclear weapons. Given the historical U.S.-Canada uranium relationship, there are ways our modern leaders can leverage our uranium advantage for the better of Canadians. The Carney government’s most recent budget called for the creation of a “critical minerals sovereign fund” and the stockpiling of graphite and scandium specifically to disrupt Chinese domination. With the deal it made with miner Nouveau Monde, the government retains the right to stockpile graphite for strategic defence reasons, but also has the option of selling the stored graphite into the market to book profits in a bull market. Interestingly, mention of uranium was missing from the budget, with no plans to stockpile the element despite its strategic importance. Rebuilding a national uranium reserve could become increasingly important as global demand for nuclear energy rises and as Canada enhances its national defence capabilities (depleted uranium can be used to create armour for vehicles or shells). A strategic stockpile would not only secure domestic energy and research needs but also strengthen Canada’s negotiating hand in future geopolitical or trade realignments. The U.S. has signaled plans to resume nuclear testing and expand its nuclear weapons modernization program, particularly as strategic competition with China intensifies. This context raises complex questions for Canada: Should uranium exports continue to be restricted exclusively to peaceful energy generation, or could limited, tightly monitored cooperation be considered with trusted allies in a new global security environment? This is not a question that the Carney government or Canada’s nuclear industry wish to entertain; however, Canada cannot afford to be on the back foot of any conversations around defence and security with our allies. While managing the relationship with the U.S. government remains challenging with an unstable individual holding the reins in the white house, deepening what Kristen Csenkey and Aniska Graver describe as paradiplomacy could prove useful2Kristen Csenkey and Aniska Graver, “Canada’s National Quantum Strategy one year on,” Canadian Foreign Policy Journal 30, no. 3 (2024): 295–306. for the Canadian nuclear industry. Paradiplomacy is the attempt to maintain relationships with other states by building or cementing new relationships that bypass political actors who are no longer acting in a coherent or stable way. An example could be Cameco negotiating directly with a major U.S. nuclear power generator (such as Palo Verde Generating Station) to generate an agreement that navigates any potential tariffs or government overreach. By engaging in paradiplomatic relationships and circumventing the upper echelons of the U.S. government—for example, through industry partners or through cross-border organizations like the Permanent Joint Board on Defense—the Canadian nuclear industry might find a way to salvage relationships during this period of chaos. Canada’s long-standing non-proliferation policy should remain a cornerstone of its foreign policy. It is an enduring model for responsible nuclear stewardship. However, maintaining a modest strategic uranium reserve and recognizing uranium’s diplomatic value could enhance national resilience and strengthen Canada’s role as both a principled and pragmatic actor in Western defence and energy cooperation. It’s important to remind Canadians that Canada has many resources that the Americans do not. Historically, the Americans have relied on Canada for those resources, and the Canadian uranium advantage is one such example. The Carney government must not forget to leverage their position of strength to negotiate a fair deal for Canadians. In this case, Trump’s erratic behaviour has served as a warning. Canada needs to recognize the strength of their uranium resources and plan their next move accordingly.