Top Canadian Basic Materials Stocks of 2026 

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.

For investors, the basic materials sector still offers both opportunity and risk. These companies can generate substantial profits when commodity prices rise, but they remain sensitive to global economic slowdowns and shifts in supply and demand imbalances. In the sections below, we break down key segments of the sector and highlight some of the top Canadian basic materials stocks to watch in 2026.

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

Heading in 2026, the global lithium market is entering a new chapter marked by both stabilization and renewed upward pressure. After steep declines between 2022–2024, lithium-carbonate prices are recovering with recent forecasts for 2025 place the average around US $10,400–$11,000 per metric ton. Several analysts expect a tight market by 2026, potentially shifting into a small supply deficit.

Demand remains the main driver. Global lithium demand is now projected to reach 1.5–1.8 million tonnes LCE by 2025, and could climb above 3 million tonnes by 2030 as electric-vehicle (EV) production, energy-storage deployments, and battery manufacturing capacity continue expanding rapidly. Supply-side adjustments are underway too — recent mine closures and production cutbacks have reduced surplus, and falling profitability for higher-cost producers suggests more supply may be withdrawn, tightening the balance further.

For Canadian lithium stocks, this shifting backdrop matters. As the global market moves from oversupply toward deficit, and battery demand continues to accelerate, well-positioned Canadian producers and developers have a clearer path to profitability and potential growth.

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

Top gold stocks in Canada

The global gold market remains red-hot going into 2026, resulting in major implications for Canadian gold stocks. Gold climbed sharply through 2025, breaking well above historical levels. For context, the metal averaged roughly US $1,900–$2,000/oz in 2024, but by mid-2025 spot prices had surged past US $3,300/oz, reaching record highs in the US $3,500–$3,600/oz range on the back of robust safe-haven demand and sustained central-bank buying.

Global demand fundamentals are shifting as well. Investment demand surged: in Q1 2025 alone, inflows into gold-backed ETFs and bar/coin purchases jumped sharply, with total global demand reaching its highest first-quarter level since 2016. Meanwhile, although supply from mines is projected to grow about 1.5% in 2025, refined supply and secondary recycling are only rising moderately, creating tighter balance conditions going into 2026.

For Canadian gold stocks, this environment offers a compelling late-cycle opportunity. High metal prices, steady investment demand, and global economic uncertainty combine to reinforce the “safe-haven” appeal of gold. Companies with reliable operations, diversified assets, and exposure to rising gold prices may benefit significantly in 2026, potentially offering both equity upside and inflation-hedging benefits.

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

Top silver stocks in Canada

As we enter 2026, silver continues to play a pivotal role in both traditional and next-generation industries, strengthening the investment case for Canadian silver producers. For context, silver hovered around US $23–$24/oz in 2024, but strong industrial demand pushed prices into the US $27–$30/oz range through 2025, marking some of the highest sustained levels in over a decade. This increase reflects silver’s dual identity as both a precious metal and an essential industrial input.

In 2025, the Canadian silver sector is expanding steadily, fuelled by surging demand from green technologies and advanced electronics. Silver’s unmatched conductivity keeps it central to solar panel manufacturing, EV components, power grid upgrades, and semiconductor fabrication. Its antimicrobial properties also drive usage in medical coatings and filtration systems. With these applications accelerating worldwide, industrial demand now accounts for more than half of total global silver consumption.

Sustainability remains a core priority across Canadian producers. Miners are adopting energy-efficient processing technologies, expanding recycling initiatives, and electrifying on-site equipment to reduce emissions. Federal incentives such as $200 million earmarked for low-carbon mining innovation continue to support these initiatives and strengthen Canada’s position as a leader in responsible silver production.

Some Canadian silver stocks to consider:

Top copper stocks in Canada

Canada’s copper sector remains one of the strongest pillars of Canada’s 2026 mining industry as global electrification accelerates. Copper averaged about US US $4.20–$4.60 per pound in 2024, but rising demand from renewable power systems, electric vehicles, and grid modernization projects pushed prices into the US $5.00–$5.50+ per pound range throughout 2025. This sustained upward trend reflects copper’s critical role in clean energy infrastructure and its tightening global supply outlook.

In 2025, Canadian copper producers are benefiting from expanding demand tied to EV adoption, growth in energy-storage technologies, and major investments in transmission line upgrades across North America. Global copper consumption surpassed 27 million metric tons in 2025, with forecasts suggesting a structural supply deficit through the late 2020s as new mines lag behind demand growth.

Canadian miners are responding by accelerating exploration programs and deploying new extraction technologies aimed at reducing water use, cutting emissions, and boosting ore recovery. Supportive federal policies including tax incentives for critical mineral development and funding for low-emission mining projects continue to position Canada as a leading global supplier of responsibly sourced copper.

Popular copper stocks are:

Top steel stocks in Canada

Entering into 2026, Canada’s steel industry is undergoing a major shift as global infrastructure spending accelerates and builders adopt more sustainable construction standards. Steel prices, which averaged around US $700 per metric ton in 2024, rose into the US $750–$800 per metric ton range in 2025, reflecting steady demand from transportation, construction, manufacturing, and clean-energy projects. This momentum is expected to continue as North America expands grid infrastructure, EV production, and urban redevelopment initiatives.

Canada’s steelmakers are also benefiting from the industry-wide transition toward low-carbon production. Companies are rapidly adopting methods to reduce harmful emissions such as electric arc furnaces, expanding scrap-steel recycling, and integrating cleaner energy sources into operations. Backed by more than $500 million in federal incentives and innovation funding, producers are accelerating upgrades that position Canada as a leading supplier of sustainable steel.

Major steel stocks in Canada include:

Top aluminum stocks in Canada

Canada’s aluminum industry is in a favorable position as 2026 global demand rises for lightweight, energy-efficient materials. Aluminum prices, which averaged around US $2,100 per metric ton in 2024, climbed to approximately US $2,350–$2,400 per metric ton in 2025, driven by strong demand from the auto, electric-vehicle, aerospace and sustainable-construction markets. This steady pricing trend is fueling renewed investment and capacity expansion among Canadian producers.

Canadian aluminum firms are responding by investing heavily in cleaner, more efficient smelting technologies to reduce greenhouse gas emissions and meet increasingly strict environmental standards. Federal incentives and growing global carbon-regulation pressure have accelerated these upgrades. As governments and industries shift toward sustainability, demand for low-carbon aluminum continues to rise, positioning Canada’s aluminum sector for steady future growth.

Major aluminum producers in North America include:

Top lumber stocks in Canada

Canada’s lumber industry remains resilient entering 2026 as construction demand stays elevated and global markets prioritize renewable, low-carbon building materials. Lumber prices, which swung sharply in earlier years, have settled to a more stable range of about US $480–$520 per thousand board feet, compared with softer averages in 2024. Continued strength in residential builds, repairs and renovations, and new commercial projects is helping support consistent demand both domestically and abroad.

Sustainability remains central as Canadian lumber producers expand certified forest management programs, adopt precision-logging technologies, and increase the use of biomass energy to cut emissions. Federal funding (now surpassing $300 million for sustainable forestry and processing innovation) is accelerating upgrades across the sector. Leading firms such as West Fraser Timber and Canfor are advancing engineered-wood products and automation to boost efficiency while ensuring long-term ecological stewardship, positioning the industry for steady growth into 2026.

Top lumber stocks in Canada include:  

Top paper stocks in Canada

Canada’s paper industry is undergoing a steady transformation into 2026 as demand continues to shift away from traditional printing papers and toward high-value packaging, tissue, and specialty paper products. Prices for most paper categories have stabilized after the volatility of earlier years, supported by rising global demand for recyclable packaging and hygiene-related paper goods. Compared with 2024 levels, packaging-grade paper has seen modest price growth driven by e-commerce expansion and stricter environmental standards worldwide.

Sustainability and innovation are driving the sector’s momentum. Federal support for recycling, circular-economy initiatives, and low-carbon manufacturing has now grown to over $250 million, accelerating investment in cleaner processing technologies and next-generation fiber products. Major players such as Resolute Forest Products and Domtar are modernizing mills, expanding into biodegradable packaging solutions, and strengthening partnerships across the supply chain.

Top paper stocks in Canada include:

Top oil stocks in Canada

Canada’s oil industry is navigating a complex but stabilizing environment as global energy markets balance the push for decarbonization with continued reliance on conventional fuels. Oil prices have hovered between $70 and $80 per barrel, slightly higher than 2024 averages due to tightened global supply, OPEC+ production discipline, and steady demand from aviation, petrochemicals, and emerging markets. Despite long-term uncertainties, Canadian producers continue to benefit from strong cash flows and improved refinery margins.

Efficiency and emissions reduction remain core priorities in 2026. Oil sands operators are accelerating the adoption of solvent-assisted extraction, next-generation tailings treatment, and digital optimization technologies that meaningfully lower operating costs and carbon intensity. Federal support for carbon management has now surpassed $600 million, bolstering investment in carbon capture, utilization, and storage (CCUS), methane-reduction systems, and low-emission fuel production. Industry leaders such as Suncor Energy, Cenovus Energy, and Canadian Natural Resources are expanding CCUS partnerships, enhancing operational integration, and pursuing long-term decarbonization pathways.

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.