In August, the Canadian government highlighted the Onaping Depth Project at Glencore Canada’s Craig Mine in Sudbury as a major example of the industry’s changing direction.
Canada’s mining industry is entering a new phase of industrial transformation. For decades, underground mines have depended on diesel-powered machinery to drill, haul, load and transport materials through some of the most demanding working environments in the world. Now, that model is beginning to change. Battery-electric vehicles, intelligent charging systems, automated operations, artificial intelligence and advanced ventilation technologies are moving from experimental projects towards commercial deployment. The result could be far more significant than a simple replacement of diesel engines with electric motors. Canada is creating the foundations of a new market for underground mining technology, where the value lies not only in extracting critical minerals, but also in the sophisticated systems required to operate electric mines efficiently.
The latest developments in 2026 suggest that this transition is accelerating. In August, the Canadian government highlighted the Onaping Depth Project at Glencore Canada’s Craig Mine in Sudbury as a major example of the industry’s changing direction. The project, supported by up to C$11 million through the federal Decarbonization Incentive Program, is expected to operate one of the world’s most advanced battery-electric underground mining fleets, with diesel emissions removed from production operations. This matters because underground electrification is not simply a climate initiative. It is becoming an industrial investment opportunity.
The traditional underground mine was designed around diesel. Heavy equipment required fuel supply chains, while diesel exhaust generated heat and emissions that demanded powerful ventilation systems. In deep mines, where operating conditions become increasingly difficult, the cost of moving fresh air underground can be substantial. Battery-electric equipment changes that equation. Electric vehicles eliminate tailpipe emissions underground and can reduce heat and noise, potentially changing the engineering requirements of the entire mine.
However, replacing a diesel loader with an electric one is only the beginning. Electric mines require charging infrastructure, upgraded electrical networks, energy management software, battery monitoring, maintenance capabilities and redesigned operational schedules. Automation becomes increasingly important because the performance of vehicles, batteries and charging assets must be coordinated across the mine. This is why Canada’s mining electrification programme is creating a broader technology market around the vehicles themselves. A 2026 analysis by EY Canada argues that successful mine electrification depends on adapting the entire operational system, including energy infrastructure, workforce practices and mine planning, rather than simply purchasing battery-electric equipment. That shift creates opportunities for equipment manufacturers, battery specialists, charging technology providers, software developers, automation companies and engineering firms.
Sudbury has long been one of Canada’s most important mining centres. Now, it is also emerging as a proving ground for the next generation of underground technology. The Onaping Depth Project at Craig Mine represents the scale of ambition now entering the sector. The deep nickel and copper development will combine battery-electric equipment with automation, remote operations and modern safety systems, creating a blueprint that could influence future mine developments in Canada and beyond. The significance extends beyond a single mining project. Once equipment manufacturers and technology providers can demonstrate that their systems work reliably in deep, demanding Canadian mines, those solutions become easier to market internationally.
Canada therefore has an opportunity to export mining technology as well as minerals. In July, the federal government also announced C$6.7 million in support for two Canadian mining innovation projects with a combined value of C$19.8 million. One project involves Novamera’s “Surgical Mining” technology, which combines subsurface imaging, artificial intelligence, robotics and drilling equipment to improve the precision with which mineral deposits can be accessed. The message is increasingly clear: the future mining economy may reward companies that can make extraction more precise, automated and energy-efficient.
One of the most important markets emerging from electrification is underground charging. Unlike electric cars operating in cities, mining vehicles work in isolated environments, often running intensive duty cycles. A machine sitting idle while waiting for a charge can affect the productivity of an entire operation. This creates demand for several different technological approaches. Some manufacturers are developing rapid-charging solutions, while others are exploring battery-swapping systems. Dynamic charging technologies could eventually allow certain equipment to receive power during operation.
Canadian industry collaboration is already supporting these technologies. The Mining Association of Canada’s 2026 innovation material highlighted projects involving underground electrification and dynamic charging systems designed to support battery-electric fleets and reduce reliance on diesel equipment. The commercial opportunity is substantial because charging infrastructure is unlikely to be a one-time purchase.
Mines will require installation, software integration, maintenance, energy management and eventual upgrades as vehicle fleets expand. That creates the characteristics of a long-term industrial services market rather than a single equipment sale. Public investment is also helping to accelerate the transition from pilot projects to commercial adoption. In 2026, Natural Resources Canada backed the Evolve Project, led by the Canada Mining Innovation Council, with C$5 million in federal support towards a project worth more than C$10 million. The initiative will test battery-electric vehicles at underground mine sites across British Columbia, Newfoundland and Labrador, and Ontario.
Its purpose is particularly important from a business perspective. The project is designed not only to measure technical performance but also to examine productivity, charging, costs and asset utilisation in operating mines. In other words, Canada is attempting to establish the commercial case for electrification. Another C$5 million project is supporting Hudbay Minerals’ deployment of battery-electric vehicles and charging infrastructure at the Lalor Mine in Manitoba.
The project is expected to reduce emissions, improve underground air quality and generate practical experience that can support wider adoption across the sector. Meanwhile, IAMGOLD is receiving support for an electric haul truck demonstration at its Westwood Mine in Quebec. These investments matter because underground mining companies are traditionally cautious about adopting unproven technologies. Equipment failures can be expensive, and operational disruption can quickly affect production. Government-backed demonstrations reduce some of that risk by generating real-world performance data.
Electrification is also accelerating the use of digital technology. Natural Resources Canada researchers at CanmetMINING in Sudbury are using artificial intelligence to study the energy consumption, regeneration and battery performance of electric mining vehicles. The objective is to help operators better understand how vehicles behave under real mining conditions and improve confidence in large-scale deployment. This opens another layer of commercial opportunity. As mines become more electric, they will produce larger volumes of operational data relating to batteries, energy consumption, equipment location, charging cycles and maintenance. Software capable of analysing that information could become essential to managing productive fleets.
The underground mine of the future may therefore operate increasingly like an integrated technology platform, with equipment, sensors, automation systems and software communicating continuously. That could create recurring revenue opportunities for technology providers through subscriptions, monitoring platforms, predictive maintenance and digital optimisation services.
Canada’s electrification push is taking place at a time when global competition for critical minerals is intensifying. Nickel, copper, lithium, cobalt and rare earth elements are important to electric vehicles, renewable energy systems, advanced manufacturing and defence technologies. Canada’s federal government announced more than C$3.6 billion in new programmes and investments for critical minerals development in March 2026, underlining the strategic importance now attached to the sector. This creates a powerful feedback loop. Canada needs more minerals to support domestic and allied supply chains.
Yet the industry is also under pressure to reduce the environmental footprint of extracting those minerals. Electrification offers a potential route towards both objectives. The government’s broader strategy is therefore helping create demand for new mines while simultaneously encouraging those mines to adopt cleaner and more technologically advanced operating models. For companies supplying underground technology, that combination could create a growing domestic customer base.
The transition will not be effortless. Electrical infrastructure can require significant upfront investment, particularly in existing mines originally designed around diesel. Charging strategies remain complex, battery performance can vary depending on operating conditions, and workforce training will be essential. Deep underground environments also present technical challenges that cannot always be solved with technologies developed for surface transport.
The economic case will therefore differ from mine to mine. Yet this complexity may itself create a market opportunity. Mining companies will increasingly need specialist engineering, energy modelling, software and integration services to design successful electric operations. The value of the sector may consequently shift towards those companies capable of connecting multiple technologies into a reliable operating system.
Canada’s greatest opportunity may ultimately lie beyond its own mines. The country already possesses deep expertise in mining engineering, equipment, geological services and underground operations. If Canadian mines become leading demonstration sites for battery-electric fleets, autonomous machinery and intelligent energy systems, the technologies developed and tested here could find customers across global mining markets.
The emerging business is therefore not simply about selling an electric truck or loader. It is about designing the infrastructure around it, managing the electricity that powers it, analysing the data it generates and integrating it into an increasingly automated mine. Canada’s mining industry is going electric, but the larger story is the economic ecosystem being created beneath the surface. As critical mineral demand grows and mining companies seek safer, cleaner and more efficient ways to operate, underground technology could become one of the sector’s most valuable new markets. The mines of the future may still produce nickel, copper and other essential resources. But increasingly, they may also produce something else: a new generation of Canadian industrial technology designed to power the global mining industry.
