Critical Minerals Outlook: Increase in M&A Activity Expected by 2025

2024 was a bit rocky for folks in the critical minerals world. Prices were dropping, making it tough for dealmakers and investors to get things moving. But, we’re looking ahead to 2025 with a positive attitude. Big mergers and acquisitions (M&A) are signaling that even though we might have too much of certain critical minerals right now, the long-term demand is on the rise. This is thanks to the global push for clean energy and the growth of new technologies.

Governments are also getting in on the action, investing in critical mineral companies to secure their own supply chains. For example, Australian companies like Illuka are getting financial support to keep their operations up and running. It’s exciting to see this kind of interest and investment in such an important sector.

Looking specifically at the minerals market, prices have been all over the place lately. But, there’s some hope that things will start looking up. Electric vehicles are driving demand for lithium, and the global shift towards clean energy is boosting the need for copper as well. This means that demand for critical minerals is expected to keep growing. While we might not see crazy high prices like we did a couple of years ago, the overall outlook is positive for the medium to long term.

Mergers and acquisitions are also on the rise, with big deals happening towards the end of 2024. Companies like Albermarle, Rio Tinto, and BHP are making moves to secure their positions in the market. With interest rates dropping and prices starting to recover, we’re gearing up for a busy year of M&A activity in 2025.

Even though there have been fewer deals in 2024 compared to the previous year, the total value of those deals is actually higher. The lithium market is especially active, with a lot of money changing hands. It’s clear that investors are starting to see the potential in critical minerals, and with costs going down, they’re ready to make some big moves.

So, while the road ahead might have some bumps, the critical minerals industry seems to be on the right track for a successful year in 2025.