IEA reports 9% critical mineral investment drop

The International Energy Agency's Global Critical Minerals Outlook 2026 reports that global investment in critical minerals declined by 9% in 2025, ending several years of growth. The decline is attributed to rising geopolitical tensions, price volatility, and a cautious investment environment despite strong demand from clean energy technologies and electric vehicles. Battery metals saw the steepest pullback, with capital spending falling over 20% and lithium companies cutting investment by around 40%. In contrast, copper investment rose 8%. Exploration spending dropped over 10%, with lithium and nickel exploration down 45%, though MSCI Asia Pacific Index increased exploration by 20%. Governments in advanced economies committed about $65 billion in public finance, over four times the 2023 level, but a gap remains between commitments and disbursements. The report also highlights a structural imbalance in the value chain, with refining and downstream capacity lagging behind mining.