Critical Minerals Market to Reach US$ 586.63 Billion by 2032; Asia Pacific Leads with 35% Share | Key Players: Albemarle Corporation, China Northern Rare Earth, MP Materials

Market Overview

Market Size (2024): USD 328.19 billion
Expected Market Size (2032): USD 586.63 billion
CAGR (2025-2032): 7.53%
The global critical minerals market is experiencing unprecedented growth, driven primarily by the accelerating transition to clean energy technologies. Key energy transition minerals including lithium, cobalt, and nickel have seen rapid demand growth: lithium demand has tripled, cobalt demand has risen by 70%, and nickel demand has increased by 40% between 2017 and 2022. Clean energy applications, such as electric vehicles (EVs), battery storage systems, and renewable energy technologies, account for significant portions of this demand.

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In India, government initiatives have intensified, with the total number of critical mineral projects increasing from 59 in 2020 to 123 in 2023. However, geographical concentration of mineral processing, particularly in China which dominates 79% of graphite processing and 60% of rare earth element processing poses a strategic challenge. This concentration underscores the importance of securing stable supply chains for critical minerals, essential for the development of renewable energy infrastructure, battery manufacturing, and energy storage solutions.

Recent Key Developments:

✅ February 2026 - U.S.‐Uzbekistan Critical Minerals Pact: The United States and Uzbekistan signed a strategic joint investment framework to enhance cooperation in exploration, extraction, and processing of key critical minerals such as lithium, copper, and tungsten. This agreement aims to support new mineral infrastructure projects and strengthen supply chain resilience.

✅ January 2026 - U.S. Domestic Critical Minerals Support: The U.S. government committed major funding to bolster domestic critical mineral projects, including expanded rare earth processing capacity outside of China. This initiative is part of a broader strategy to secure supply chains for technology and defense applications.

✅ June 2025 - EU Mining Expansion in Africa: The European Union increased financial and technical support for critical mineral mining projects across Africa, including rare earths, graphite, and cobalt initiatives in multiple countries, under its Critical Raw Materials Act.

✅ July 2025 - U.S. Mineral Collaboration (MINAC): Lucid Group and domestic critical minerals producers launched the Minerals for National Automotive Competitiveness Collaboration (MINAC) to strengthen U.S. supply chains for minerals used in EV batteries and related manufacturing.

Latest Mergers & Acquisitions
✅ September 2025 - Europe: European Metals Holdings Ltd. acquired a lithium and cobalt extraction project in Portugal, aimed at increasing strategic reserves of energy transition minerals within the EU.

✅ August 2025 - Africa: A joint venture between Glencore and regional partners expanded cobalt and copper operations in the Democratic Republic of Congo, focusing on sustainable mining practices and improved logistics for global supply.

✅ June 2025 - Asia Pacific: Tata Chemicals and Japan Oil, Gas and Metals National Corporation (JOGMEC) formed a strategic partnership to acquire stakes in lithium and graphite projects in India, supporting the regional EV and energy storage ecosystem.

Key Players:

Albemarle Corporation - 12% Share: A leading global producer of lithium, providing battery-grade lithium compounds for EVs and energy storage systems.

Livent Corporation - 8% Share: Specializes in high-purity lithium products for rechargeable batteries and specialty chemical applications.

Lynas Rare Earths Limited - 7% Share: Major rare earth element producer outside China, supplying materials for magnets, electronics, and clean energy technologies.

MP Materials Corp. - 10% Share: Focused on rare earth mining and processing in North America, strengthening domestic supply chains for high-demand minerals.

China Northern Rare Earth (Group) High-Tech Co., Ltd. - 15% Share: One of the largest rare earth producers globally, dominating supply of critical minerals such as neodymium and praseodymium.

Glencore plc - 9% Share: Diversified miner producing cobalt, copper, and other critical minerals, with a strong presence in Africa and global trading networks.

Iluka Resources Limited - 6% Share: Produces titanium, zirconium, and specialty minerals for industrial and energy applications.

Rio Tinto Group - 8% Share: Major producer of lithium, titanium, and other critical minerals, supporting EV battery supply chains.

Pilbara Minerals Limited - 6% Share: Focused on lithium extraction in Australia, supplying spodumene for battery-grade lithium production.

Canada Nickel Company Inc. - 3% Share: Developer of nickel projects in Canada, aimed at supporting clean energy and battery applications.

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Market Segmentation:

By Mineral Type
Lithium - 30% Share: Driven by EV battery demand, energy storage systems, and portable electronics.

Cobalt - 15% Share: Primarily used in lithium-ion batteries, superalloys, and high-performance applications.

Nickel - 12% Share: Key component in battery cathodes, stainless steel, and clean energy technologies.

Rare Earth Elements (REEs) - 20% Share: Includes neodymium, praseodymium, and dysprosium, used in magnets, electronics, and renewable energy systems.

Graphite - 10% Share: Used in anodes for lithium-ion batteries and various industrial applications.

Others (Copper, Manganese, Titanium, etc.) - 13% Share: Supporting renewable energy infrastructure, EV production, and industrial uses.

By Extraction Method
Open-Pit Mining - 45% Share: Predominantly used for lithium, nickel, and cobalt, offering high production volumes at lower costs.

Underground Mining - 25% Share: Applied for high-value critical minerals, including cobalt and rare earths, often in geologically complex areas.

Hydrometallurgical & Chemical Extraction - 20% Share: Used for lithium brine processing, rare earth extraction, and refining high-purity minerals.

Others (Recycling & Secondary Processing) - 10% Share: Increasingly important for sustainable recovery of critical minerals from electronic waste and spent batteries.

By Application
Electric Vehicles (EVs) & Battery Storage - 40% Share: Largest driver for lithium, cobalt, nickel, and graphite consumption.

Renewable Energy Technologies - 25% Share: Wind turbines, solar panels, and energy storage systems require rare earths, lithium, and other minerals.

Electronics & Industrial Applications - 20% Share: Includes consumer electronics, magnets, catalysts, and specialty alloys.

Defense & Aerospace - 10% Share: Use of rare earths, titanium, and other critical minerals for high-performance components.

Others - 5% Share: Miscellaneous applications in healthcare, automotive, and infrastructure projects.

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Regional Insights

North America - 28% Share: North America holds a significant portion of the critical minerals market, driven by domestic lithium, nickel, and rare earth production projects. Strong government support, investments in EV battery manufacturing, and strategic initiatives to reduce reliance on imported minerals bolster market growth.

Asia Pacific - 35% Share: The Asia Pacific region dominates the market due to large-scale mining and processing of lithium, cobalt, nickel, and rare earth elements in countries like China, Australia, and India. Rapid adoption of EVs, renewable energy projects, and battery manufacturing capacity fuels high demand for critical minerals.

Europe - 15% Share: Europe's market growth is supported by EU policies promoting strategic autonomy in critical minerals, investments in rare earth and lithium projects, and expansion of renewable energy and EV battery production facilities.

Latin America - 12% Share: Latin America contributes through lithium-rich countries such as Chile, Argentina, and Bolivia, with expanding mining projects for lithium brines, nickel, and cobalt aimed at global EV supply chains.

Market Drivers:
Drivers
Rising Demand for Energy Transition Technologies (EVs and Renewables)
The global critical minerals market is being driven by the accelerating adoption of energy transition technologies, including electric vehicles (EVs), battery storage systems, and renewable energy infrastructure. According to industry projections, mineral demand for clean energy technologies is expected to nearly quadruple by 2040, reaching close to 40 million tonnes annually.

Lithium demand is projected to increase ninefold to support EV batteries and grid storage solutions.

Copper demand is expected to see the largest absolute growth, given its critical role in electrification and renewable energy systems.

Currently, clean energy applications account for over 40% of total demand for copper and rare earth elements, 60-70% for nickel and cobalt, and nearly 90% for lithium.

Restraints
Geopolitical Risks and Supply Chain Concentration
The critical minerals market faces constraints due to geopolitical risks and concentrated supply chains. China dominates the processing of several key minerals, refining 70% of global cobalt and nearly 60% of lithium and manganese, while the Democratic Republic of the Congo (DRC) supplies 70% of global cobalt.

Such heavy reliance on a few countries creates vulnerability to supply disruptions, including:
Export restrictions and trade disputes
Political instability in mineral-producing regions
Price volatility and market manipulation

Future Outlook
The global critical minerals market is expected to experience strong growth, reaching approximately USD 586.63 billion by 2032, growing at a CAGR of 7.53% from 2025 to 2032. This growth will be primarily driven by the expansion of electric vehicles (EVs), renewable energy projects, and battery storage systems worldwide.

Key trends shaping the market's future include:
Rising EV and Battery Demand: The increasing adoption of EVs and grid storage systems will continue to fuel demand for lithium, cobalt, nickel, and graphite, supporting a robust market trajectory.

Expansion of Renewable Energy Projects: Wind, solar, and other renewable infrastructure require rare earth elements, copper, and other critical minerals, further driving regional and global demand.

Technological Advancements in Mining and Processing: Innovations such as low-carbon smelting, hydrometallurgical extraction, and recycling of spent batteries will improve efficiency, reduce environmental impact, and enhance supply reliability.

Diversification of Supply Chains: Countries like India, the U.S., and EU members are investing in domestic mining, processing, and strategic partnerships to reduce reliance on concentrated sources like China and the DRC.

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