Critical Minerals Market Forecast: Surging to USD 494.23 Billion by 2030 Driven by Electric Vehicle and Renewable Energy Demand

As per the report published by Kings Research, the global Critical Minerals Market was valued at USD 320.43 billion in 2022. The market is projected to reach USD 494.23 billion by 2030, growing at a CAGR of 5.69% from 2023 to 2030.

The global critical minerals market is anticipated to undergo significant transformation over the forecast period. Several pivotal trends are set to shape the landscape. The market is likely to experience an increasing focus on attaining a domestic supply of critical minerals to mitigate reliance on foreign sources. This trend is propelled by geopolitical considerations and the recognition of the crucial role these minerals play in advanced technologies.

Additionally, the soaring emphasis on sustainability and clean energy is projected to amplify the demand for critical minerals, particularly in electric vehicle batteries, wind turbines, and solar panels. This surge in demand is expected to result in higher prices.

Moreover, the industry is expected to witness a surge in innovation pertaining to recycling and sustainable mining practices, thereby effectively addressing environmental concerns associated with the extraction of critical minerals. Additionally, increased investments in the exploration and development of new sources for these minerals are estimated to support market growth.

Nonetheless, challenges may arise from supply chain disruptions and geopolitical tensions. Overall, the critical minerals market is poised to witness robust growth through the projected period, driven by technological advancements and the widespread transition towards cleaner and more sustainable energy sources.

Key Insights

• Based on mineral type, the cobalt segment is anticipated to register the highest CAGR of 9.22% over the forecast period
• Based on application, the electric vehicles segment generated the highest revenue of USD 97.73 billion in 2022
• On the basis of region, North America is expected to witness the highest CAGR of 7.46% over 2023-2030

Rio Tinto Partners with First Quantum Minerals for the Development of La Granja Project

August 2023: Rio Tinto and First Quantum Minerals successfully concluded a transaction to establish a joint venture focused on advancing the development of the La Granja project in Peru. La Granja is recognized as one of the largest untapped copper deposits globally. This strategic partnership aims to unlock the full potential of the project and capitalize on its significant copper resources.

Increasing Demand for Electric Vehicles and Renewable Energy Sources to Propel Market Growth

The advanced technologies rely on critical minerals such as lithium, cobalt, and rare earth elements, making them essential for the transition to cleaner energy sources. Furthermore, governments and international organizations are recognizing the importance of securing a stable supply of critical minerals. This has led to increased investments in domestic production and diversification of sources, fueled by geopolitical considerations.

Moreover, increasing environmental regulations are promoting more responsible mining and recycling practices, ensuring a sustainable supply of critical minerals. Overall, these drivers create a positive market perspective for the critical minerals industry, thereby fostering growth and innovation.

Expansion of Domestic Production and Diversified Supply Chain Provides New Opportunities for Market Development

The critical minerals market presents lucrative opportunities for businesses and investors. Governments and industries are actively seeking ways to reduce dependence on a few major suppliers, creating openings for new players and exploration in untapped regions. Moreover, the growing emphasis on sustainable practices creates opportunities for companies specializing in environmentally friendly mining, recycling, and resource recovery technologies. As environmental regulations become stricter, businesses that can offer cleaner and responsible solutions for critical mineral production are expected to thrive.

• For instance, in August 2023, Rio Tinto and the Government of Madagascar successfully finalized an agreement regarding the future fiscal arrangements for QIT Madagascar Minerals (QMM). Additionally, they have reaffirmed their commitment to a long-term partnership aimed at ensuring the sustainable operation of the QMM mine located in Fort Dauphin, Madagascar.

North America Exhibits the Fastest Growing Region, Depicting CAGR of 7.46% to Increasing Investments in Critical Minerals

This growth is primarily fueled by North America's strategic efforts to decrease its dependence on foreign sources for critical minerals, particularly those essential for electric vehicle (EV) batteries and renewable energy technologies. The region's commitment to domestic production and supply chain diversification is a key driver fostering market expansion. Major companies are implementing policies that actively support the development of a robust domestic critical minerals industry. These policies streamline permitting processes and offer incentives for investments in mining and processing facilities, attracting capital and fostering growth within the sector.

• For instance, in February 2023, Freeport-McMoRan announced that PT Freeport Indonesia was granted the prestigious Copper Mark, solidifying FCX's achievement of the Copper Mark at all 12 of its eligible copper producing sites worldwide.

The demand for critical minerals in North America is further bolstered by the remarkable growth of the electric vehicle market. Major automakers are investing heavily in EV production facilities across the region, thereby driving the need for critical minerals. Additionally, the expansion of renewable energy projects, such as wind and solar farms, requires substantial quantities of critical minerals for energy storage and generation.

Overall, North America's unwavering commitment to reducing import reliance, combined with the flourishing EV and renewable energy sectors, positions the region as the fastest-growing market for critical minerals. This promising outlook is likely to facilitate continued growth for the regional industry in the forthcoming years.

Increased Focus of Market Players on Innovative Product Innovation to Drive Market Development

The global critical minerals market is fragmented with key players such as Rio Tinto, Vale, Glencore, Freeport-McMoRan, Anglo American plc, Albemarle Corporation, Lynas Rare Earths Ltd, Barrick Gold Corporation, BHP, and SQM S.A. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.