The 2025 critical materials investment landscape presents both growth opportunities and challenges.
The market for critical material recovery is expected to expand at a 12.7% CAGR through 2045, driven by demand for advanced technologies and clean energy. However, geopolitical fragmentation and high capital costs complicate the sector.
Key trends include increased government investment, a growing secondary market for material recovery (projected to reach $110 billion by 2045), and shifting focus from platinum group metals to lithium, nickel, cobalt, and rare-earth elements. M&A activity is expected, but regulatory scrutiny remains a hurdle. Policy initiatives from the US, EU, Canada, and Australia aim to strengthen supply chains, while emerging technologies, including seabed mineral production, could disrupt the market.
Funding opportunities, such as the $6 billion U.S. Battery Materials Processing and Manufacturing Grant Program, highlight the push for domestic innovation.
Overall, the sector requires strategic partnerships and innovative solutions to ensure a sustainable and secure supply of critical materials.