Global investment in critical minerals declines despite energy security concerns

Thursday 16 - 14:46

By: Azzat Manal

Global investment in critical minerals declines despite energy security concerns

Global investment in critical minerals declined in 2026 despite growing concerns over energy security and the need to diversify supply chains, according to the latest report from the International Energy Agency (IEA).

The agency reported that worldwide spending on mining and mineral refining dropped as investors faced weaker commodity prices, geopolitical uncertainty, and increased market volatility. The slowdown comes at a time when many governments are seeking to secure access to essential raw materials used in electric vehicles, renewable energy technologies, semiconductors, aerospace equipment, and advanced manufacturing.

The IEA noted that the processing of critical minerals remains highly concentrated, with China and Indonesia continuing to dominate global refining capacity. Together, the two countries accounted for the majority of recent growth in refined mineral production, reinforcing their strategic position within global supply chains.

According to the report, export restrictions and geopolitical tensions have become increasingly important factors affecting international markets. Supply disruptions involving rare earth elements have highlighted the vulnerability of industries that depend heavily on imported materials for manufacturing high-tech products and clean energy equipment.

Although private investment weakened, public financial support for strategic mineral projects continued to grow. Several governments have announced new funding initiatives aimed at encouraging domestic mining, expanding refining capacity, and reducing dependence on a limited number of suppliers.

The report also points to gradual progress in supply chain diversification. Countries such as the United States and Malaysia are investing in new refining facilities and processing technologies in an effort to strengthen their role in the global market and improve long-term resource security.

Industry analysts believe demand for critical minerals will continue to increase over the coming decade as the global transition toward low-carbon energy accelerates. However, meeting future demand will require sustained investment, technological innovation, and greater international cooperation to build more resilient and diversified supply chains.

The IEA concluded that while long-term demand remains strong, maintaining reliable access to critical minerals will require balancing economic competitiveness with strategic security considerations in an increasingly complex global environment.