Critical Minerals: Navigating Uncertainty Amid Surging Demand
The global critical mineral sector faces market uncertainties despite high demand, says the IEA. Investment in critical minerals rose only 5% in 2024 after a 14% increase in 2023. Exploration stagnated, and prices dropped due to supply expansions concentrated in key refining nations like Indonesia and China.
- Country:
- India
The International Energy Agency (IEA) highlights significant challenges in the global critical mineral sector, citing market and economic uncertainties despite expectations of rising demand. In its Global Critical Minerals Outlook 2025, the IEA notes that investment growth in 2024 was only 5%, markedly lower than the 14% rise seen in 2023.
Exploration initiatives appeared to lose momentum after consistent growth since 2020. Although there was increased spending on minerals like lithium and copper, investment in nickel, cobalt, and zinc showed a stark decline. Additionally, the influx of financing for startups showed signs of slowing, with lower mineral prices failing to attract new investments.
The IEA emphasizes that diversification is crucial for energy security; however, the industry is moving towards increased geographical concentration, particularly in refining processes. The top suppliers, including Indonesia and China, continue to dominate the market, with significant growth in refined material production primarily from these countries.
(With inputs from agencies.)
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