The critical minerals market faced challenges in 2024, including declining prices and reduced deal activity due to supply outpacing short-term demand. Despite this, optimism is growing for 2025, driven by increasing clean energy demands, government investments, and strategic M&A activity.
Key insights include:
Price Recovery: Lithium and copper demand is expected to rise as the global energy transition advances, although prices are unlikely to reach 2022-2023 highs.
M&A Surge: Big-ticket acquisitions are gaining momentum, supported by improving financing conditions and investor interest, though geopolitical and regulatory challenges persist.
Creative Financing: Developers are turning to government funding, offtake agreements, and alternative finance structures as traditional funding remains constrained.
Government Involvement: Governments, including Australia and the US, are increasing investments and imposing regulations to secure critical mineral supply chains.
Foreign Investment Scrutiny: Australia's stricter foreign investment rules for critical minerals are causing uncertainty, though improved regulatory clarity is anticipated.
Overall, 2025 is poised for growth, innovation, and evolving government roles in the critical minerals sector.
Read More: Critical minerals outlook: M&A to ramp up
