Top Canadian Basic Materials Stocks of 2025 

The basic materials sector is comprised of companies that produce raw materials, such as steel, aluminum, and crude oil. These companies are the backbones of the global economy: without them, we wouldn’t have the basic ingredients to manufacture essential products, such as cars, buildings, houses, clothing, rechargeable batteries, and consumer electronics.

Because so much depends on this crucial market sector, materials companies are often large, thriving businesses that generate massive profits, both for themselves and the investors who own shares of their stock. That said, the materials sector is highly cyclical: when the economy is thriving, these companies might perform well; but when the economy falters, they’re often the first to suffer.

Investors who want to profit from materials stocks have a lot of options. Below, we’ll break down the materials sector and help you understand the risks and rewards of investing in it.

Related: List of stocks in the TSX materials sector

What are materials stocks?

Materials stocks are companies that find, develop, and sell unprocessed or natural materials. They typically make money by selling raw materials (sometimes called “feedstock”) to companies in other market sectors, which then process the materials into finished products for sale.

Raw materials are often natural resources, such as stone, though they could be human-made materials, too, like chemicals. The following are the five most common sub-sectors of the raw materials industry:

• Chemicals, such as plastic.
• Construction materials, such as iron ore and stone.
• Containers and packaging, such as cardboard boxes and food containers.
• Paper and forest products, such as timber and paper reams.
• Metal and mining, such as gold, silver, and lithium.

Top materials stocks in Canada

The materials sector in Canada is massive. In fact, Canada is a leading producer of many of the world’s raw materials, such as gold, silver, cobalt, timber, and nickel. To help you invest in materials stocks, let’s break it down into nine different subsections:

• Lithium
• Gold
• Silver
• Copper
• Steel
• Aluminum
• Timber
• Paper
• Crude oil

Top lithium stocks in Canada

By 2025, the Canadian lithium market is witnessing significant growth due to escalating demand from the electric vehicle (EV) sector and advancements in battery technology, including solid-state and lithium-sulfur batteries. Global lithium demand is projected to reach 1.5 million metric tons by 2030, prompting a surge in lithium prices, from $10,000 per metric ton in 2020 to over $90,000 in 2025. This boom is supported by government incentives amounting to $500 million aimed at promoting clean mining practices and bolstering the EV market.

Canadian companies like Lithium Americas Corp and Sigma Lithium Resources have expanded operations, with projected increases in production and market capitalization as they form strategic partnerships with major international corporations.

Here are some major lithium stocks in Canada you might want to consider:  

Top gold stocks in Canada

Gold stocks are mining companies whose principal activity is finding and extracting gold. They’re considered safe-havens against volatility, inflation, and market downturns. As of 2025, the Canadian gold industry continues to thrive, driven by global economic uncertainties and the metal’s role as a safe-haven investment. The demand for gold has been bolstered by its escalating use in electronics, medicine, and green technologies, alongside traditional jewelry and investment sectors.

The global push towards economic recovery post-pandemic has also contributed to a steady demand, with gold prices hovering around $2,000 per ounce. This price stability has encouraged Canadian mining companies to expand operations and explore new mining technologies to improve efficiency and reduce environmental impact.

The following three are some of Canada’s biggest gold mining companies:  

Top silver stocks in Canada

Silver stocks are mining companies that refine and produce silver. Like gold, silver stocks are generally considered safe stocks, especially since silver is used to produce many essential and high-demand products, such as water purification, medicines, cars, solar panels, electronics, and jewelry.

In 2025, the Canadian silver industry is experiencing robust growth, driven by its crucial role in emerging green technologies and the electronics sector. Silver’s conductivity and antibacterial properties make it indispensable in solar panels, electric vehicles, and various medical applications. These uses, coupled with traditional demand for jewelry and investment, have kept silver prices stable at around $25 per ounce.

Sustainability is at the forefront, with companies aiming to lower their environmental footprint through innovative practices that cut down on energy usage and waste. The Canadian government has committed to providing $200 million in incentives to encourage green mining initiatives and technological research in the silver sector.

Some Canadian silver stocks to consider:

Top copper stocks in Canada

In 2025, Canada’s copper industry is thriving as demand surges due to its essential role in renewable energy systems, electric vehicles (EVs), and infrastructure development. Known for its superior electrical conductivity, copper is indispensable in the transition towards sustainable energy solutions, from wind turbines to solar panels.

The global move to electrification and smart infrastructure has kept copper prices robust, trending around $4.25 per pound. This strong market has prompted Canadian mining companies to ramp up production and invest in innovative extraction and processing technologies that aim to enhance efficiency and eco-friendliness.

Popular copper stocks are:

Top steel stocks in Canada

By 2025, Canada’s steel industry is experiencing transformation, driven by the global emphasis on infrastructure development and sustainable construction practices. Steel, a critical component in building and manufacturing, is witnessing renewed demand fueled by investments in smart infrastructure and green building technologies. Steel prices have stabilized around $750 per metric ton, reflecting a steady demand in the construction, automotive, and household appliance sectors.

The focus on sustainability has led to the implementation of innovative processes, such as electric arc furnaces and increased steel scrap recycling, resulting in significant cuts in carbon emissions. With the Canadian government investing $500 million into research and incentives for low-carbon steel production, the industry is set to meet stringent environmental standards. 

Major steel stocks in Canada include:

Top aluminum stocks in Canada

In 2025, Canada’s aluminum industry is prospering due to its critical role in lightweight, energy-efficient applications across transportation, construction, and packaging sectors. Aluminum’s properties, such as its light weight and high strength, make it essential for producing fuel-efficient vehicles and sustainable building materials.

As a result, aluminum prices have remained strong at approximately $2,300 per metric ton. Canadian aluminum producers are scaling up operations and investing in advanced smelting technologies to enhance production efficiency and reduce their carbon footprint.

Major aluminum producers in North America include:

Top lumber stocks in Canada

As of 2025, the Canadian lumber industry is experiencing strong demand, fueled by robust construction activities and the global shift towards sustainable materials. Lumber is pivotal in residential and commercial construction, with wood increasingly favored for its renewable nature and carbon-sequestering abilities. Prices have seen fluctuations but have stabilized around $500 per thousand board feet in response to consistent demand from both domestic and international markets.

Sustainability is a core focus, with Canadian companies leading efforts in responsible forest management and certification programs that reduce environmental impacts. The Canadian government has invested $250 million in initiatives supporting sustainable forestry practices and technological advancements in lumber processing. Notable companies like West Fraser Timber and Canfor Corporation are investing in innovative techniques and forming partnerships to enhance productivity while maintaining ecological balance.

Top lumber stocks in Canada include:  

Top paper stocks in Canada

By 2025, the Canadian paper industry is adapting to shifts in consumer preferences and technological advancements, focusing on sustainable practices and diversification into new product lines. While traditional paper demand for printing and writing has declined, there is growing demand for packaging materials and hygiene products. The industry has responded by innovating and producing more sustainable and recyclable packaging solutions, leading to stable prices and renewed growth opportunities.

Sustainability is integral to the industry’s evolution, with companies committed to reducing carbon footprints and promoting responsible forest management. The Canadian government has allocated $200 million towards initiatives that encourage recycling and the development of eco-friendly paper products. Leading firms such as Resolute Forest Products and Domtar Corporation are at the forefront, leveraging advanced technologies and forming strategic partnerships to diversify product offerings and enhance sustainability. 

Top paper stocks in Canada include:

Top oil stocks in Canada

In 2025, Canada’s oil industry faces a changing landscape shaped by the global transition toward cleaner energy and fluctuations in fossil fuel demand. Despite these challenges, oil remains a critical component of the energy mix, with prices averaging around $75 per barrel as markets adapt to balanced supply and demand. Canadian oil producers are focusing on increasing efficiency and reducing emissions through technological innovations and improved extraction techniques, ensuring the industry’s competitiveness and sustainability.

Environmental responsibility is at the center of the industry’s strategy, with initiatives to minimize ecological impact and carbon emissions through improved technologies in oil sands extraction and refining processes. The Canadian government is supporting this transition with $500 million allocated to research and development in carbon capture and storage technologies and emissions reduction efforts. Prominent players like Suncor Energy and Canadian Natural Resources are leading the charge by adopting advanced methods and forming strategic alliances to enhance operational efficiency and sustainability.

In Canada, the best oil stocks include:

Should you invest in materials stocks?

Before you invest in basic materials stocks, understand that the materials sector is cyclical, meaning its performance is tied to the strength of the overall economy. When the economy is thriving, materials stocks tend to perform exceptionally well, as companies need basic materials to produce more consumer products.

But the reverse of this is also true. During recessions or economic downturns, materials companies often take the brunt of the blow. Because fewer consumers have the income to buy products, there’s less demand for raw materials, forcing materials companies to sell goods at a lower price.

Other factors that can challenge materials companies include high inflation, supply chain disruptions, geopolitical turmoil (especially in countries where raw materials are found), and new legislations or regulations.

That shouldn’t discourage you from investing in this essential market sector. But it should caution you from investing too much of your portfolio in materials stocks.

The best materials companies are large, older, and have a strong financial footing. Their operations are typically diversified, meaning they generate revenues from more than one source, and their operating costs will be low. Low debt, along with strong cash flow, allows these companies to make substantial money when the economy is booming, not to mention fend off financial disasters should the economy falter.