Critical Minerals Investment Drops 9% in 2025 Amid Geopolitical Tensions

The International Energy Agency’s Global Critical Minerals Outlook 2026 reports that global investment in critical minerals fell by 9% in 2025, ending several years of growth despite strong long‑term demand for minerals needed in clean‑energy technologies, electric vehicles and advanced industries. The decline was driven by rising geopolitical tensions and price volatility.

Investment in battery metals suffered the steepest pullback, with spending falling more than 20% and lithium projects cutting capital by roughly 40%. In contrast, copper attracted more capital, with an 8% increase in spending. Exploration budgets also weakened, dropping over 10% overall, with lithium and nickel exploration down about 45%.

Governments stepped in, with public finance commitments in advanced economies reaching about USD 65 billion in 2025 – four times the amount pledged in 2023 – though a gap remains between announced funds and actual disbursements. The report highlights ongoing supply‑chain challenges, noting that much of the world’s processing capacity for rare‑earth minerals is controlled by China and that permitting, legal and infrastructure delays continue to constrain new mining projects.