Critical minerals underpin an estimated $7.5 trillion in global clean energy and defence manufacturing output annually, according to the IEA Critical Minerals Market Review 2024. The global supply chain for these materials — spanning lithium, cobalt, nickel, copper, rare earth elements, and a further 30-plus designated minerals — is concentrated in a handful of countries and remains acutely exposed to geopolitical disruption. Critical minerals global production is dominated by China, which controls refining capacity across most battery-relevant materials, while primary mining is distributed across the DRC, Australia, Chile, Indonesia, and South Africa.
Global Critical Minerals — Market Overview
The USGS Mineral Resources Program tracks 50 minerals designated as critical by the US government. The EU’s Critical Raw Materials Act (2024) designates 34 strategic raw materials, and the IEA monitors a broadly overlapping set aligned to clean energy transition demand. Demand forecasts across these frameworks converge on a 2–4× increase in aggregate critical mineral requirements by 2040, driven primarily by EV batteries, wind turbines, grid storage, and defence electronics.
China’s dominance across the critical minerals global supply chain extends beyond mining into processing. As of 2025, China refines approximately 60% of global lithium, 70% of global cobalt, and over 85% of rare earth elements, according to IEA estimates. Western governments — led by the US, EU, Australia, Canada, and the UK — have launched coordinated supply chain diversification programmes, including the Minerals Security Partnership (MSP) and the EU Critical Raw Materials Act, though meaningful production diversification remains years from commercial scale.
Battery materials account for the largest single demand segment. Lithium carbonate equivalent (LCE) demand reached approximately 950 kt in 2025, with Benchmark Mineral Intelligence forecasting growth to over 2,000 kt by 2030. Cobalt, nickel sulphate, manganese, and graphite follow as the key battery-relevant minerals by volume and value.
Key Minerals by Region — Global Snapshot
| Region | Key Minerals | Top Producer | Global Share (est.) | Primary End-Use |
|---|---|---|---|---|
| Asia | Lithium, REE, Nickel, Graphite | China, Indonesia, Australia | 60–85% refining | EV batteries, magnets |
| Africa | Cobalt, Copper, Manganese, PGMs | DRC, South Africa, Zambia | ~70% cobalt mining | EV batteries, superalloys |
| South America | Lithium, Copper, Nickel | Chile, Argentina, Brazil | ~55% lithium mining | EV batteries, wiring |
| North America | Lithium, Nickel, Cobalt, REE | USA, Canada | Growing — sub-10% most minerals | Defence, EVs, grid |
| Europe | Lithium, Nickel, REE | Finland, Portugal, Serbia | Low primary; growing midstream | EV batteries, defence |
| Middle East | Copper, Aluminium, Phosphates | Saudi Arabia, UAE | Emerging critical minerals sector | Infrastructure, EVs |
| Oceania | Lithium, Nickel, Cobalt, REE | Australia | ~50% lithium spodumene | EV batteries, defence |
Major Companies in the Global Critical Minerals Market
The largest producers by market capitalisation include BHP Group (ASX/NYSE: BHP), Rio Tinto (ASX/NYSE: RIO), Glencore (LSE: GLEN), Albemarle Corporation (NYSE: ALB), and SQM (NYSE: SQM). Chinese state-linked producers — including CATL, Zijin Mining, and China Molybdenum (CMOC) — dominate battery materials and cobalt processing globally. Among Western mid-tier producers, Pilbara Minerals (ASX: PLS), Lynas Rare Earths (ASX: LYC), and MP Materials (NYSE: MP) are building supply chains outside China with backing from US and Australian government programmes.
Defence-oriented supply chain investment has accelerated since 2023. The US Department of Defense has awarded direct production incentives to domestic and allied producers of rare earths, cobalt, and tungsten. The UK, Australia, Canada, and Japan have each launched parallel strategic minerals programmes with offtake and financing components.
Policy & Regulatory Landscape — 2026
The US Inflation Reduction Act (IRA) and its critical minerals provisions continue to drive investment into North American and allied-nation supply chains, with domestic content requirements tightening progressively through 2029. The EU’s Critical Raw Materials Act entered implementation phase in 2025, establishing benchmark targets: 10% domestic extraction, 40% domestic processing, and 15% recycled content of annual consumption by 2030 for each strategic raw material. China has expanded its export licensing regime across gallium, germanium, graphite, and antimony since 2023, with further restrictions on rare earth processing technology announced in early 2025.
Critical Minerals Global Supply Chain — Western Diversification
The Minerals Security Partnership, launched in 2022 and now comprising 14 governments plus the EU, has facilitated over $3 billion in financing commitments for critical mineral projects in Africa, Latin America, and Southeast Asia as of early 2026, according to MSP member government statements. Progress has been uneven — most MSP-backed projects remain in feasibility or development stage, and no MSP initiative has yet displaced Chinese supply in a commercially meaningful volume. Processing capacity outside China remains the most acute bottleneck across lithium chemicals, cobalt sulphate, and rare earth separation.
Latest Critical Minerals News — Global
This section features the latest global critical minerals news from Critical Minerals News. Browse all global coverage below.
| Indicator | Data Point | Source |
|---|---|---|
| IEA Critical Minerals demand growth to 2040 | 2–4× current levels (scenario-dependent) | IEA, 2024 |
| China share of global REE refining | ~85% | IEA, 2024 (estimated) |
| China share of global cobalt refining | ~70% | IEA, 2024 (estimated) |
| Global LCE demand (2025 est.) | ~950 kt | Benchmark Mineral Intelligence (estimated) |
| MSP financing commitments | $3bn+ (2022–2026) | MSP member governments (estimated) |
Data is for informational purposes only and does not constitute investment advice. Figures are subject to revision.
What are critical minerals?
Critical minerals are raw materials deemed essential to modern economies and national security, for which supply is at risk of disruption. Governments including the US, EU, UK, and Australia publish formal critical minerals lists covering 30–50 materials each, including lithium, cobalt, nickel, rare earth elements, graphite, and copper. Designations vary by jurisdiction but broadly overlap around battery materials, defence-relevant metals, and green energy inputs.
Which countries produce the most critical minerals globally?
China dominates refining across most battery-relevant minerals. For primary mining, the DRC produces approximately 70% of global cobalt, Chile and Australia together account for over 55% of lithium, China mines over 60% of rare earth elements, and Indonesia produces roughly 50% of global nickel. Australia, Canada, South Africa, and Brazil are significant producers across multiple minerals.
Why is China so dominant in critical minerals?
China’s dominance reflects decades of state-directed investment in mining, processing, and refining capacity, combined with lower environmental compliance costs and integrated supply chains from ore to finished battery components. Chinese firms also hold significant mining assets in the DRC, Australia, and Latin America. Processing capacity — particularly for lithium chemicals, cobalt sulphate, and rare earth separation — is the hardest bottleneck for Western nations to replicate, requiring capital-intensive facilities and specialist expertise built over many years.
What is the Minerals Security Partnership?
The Minerals Security Partnership (MSP) is a government-led initiative launched in 2022, comprising the US, EU, UK, Australia, Canada, Japan, South Korea, and several other nations. It aims to develop diverse, reliable critical mineral supply chains by facilitating investment in mining and processing projects outside China. As of early 2026, the MSP has supported financing commitments of over $3 billion across projects in Africa, Latin America, and Southeast Asia, though most remain in development stage.
What is driving growth in critical minerals demand?
EV battery manufacturing is the primary demand driver, requiring lithium, cobalt, nickel, manganese, and graphite at scale. Wind turbines require rare earth elements (particularly neodymium and dysprosium) for permanent magnets. Grid-scale energy storage adds further lithium demand. Defence electronics — including guided munitions, radar systems, and communications hardware — require gallium, germanium, indium, and rare earths. Analysts at Adamas Intelligence and Wood Mackenzie project demand growth of 2–4× across most critical minerals by 2040 under central scenarios.
How often is this page updated?
The Critical Minerals News global hub page is reviewed annually and updated when significant supply chain, policy, or production developments occur. Data in the Regional Snapshot table is updated each year using the latest USGS Mineral Resources figures, typically published in January–February.
