Critical Mineral Investment Growth Slows Sharply

Investment in critical minerals is slowing, raising concerns about future supply chain vulnerabilities, according to the International Energy Agency (IEA). A new report indicates that investment growth decelerated to 5% in 2024, a significant drop from the 13% increase in 2023, while exploration activity has plateaued. This slowdown occurs as demand for lithium surged by 30% in 2024, greatly exceeding the 10% annual growth rate of the previous decade. The IEA highlights growing market concentration, particularly in refining and processing. The top three producers’ average market share for key minerals like copper, lithium, nickel, cobalt, graphite, and rare earth elements rose to 86% in 2024 from approximately 82% in 2020, with single suppliers dominating supply growth, exacerbating concentration risks.