IEA: Critical mineral investment drops 9% as China, Indonesia lead refining

In April 2025, the International Energy Agency reported that global investment in critical minerals fell by 9% despite efforts by Western nations to diversify supply chains for sectors like clean energy and aerospace. The agency noted that China and Indonesia accounted for over three‑quarters of the growth in refined mineral supply over the previous two years, while geopolitical tensions and price volatility dragged investment down. China’s April 2025 rare‑earth export controls forced some automakers to cut output or halt production, and the IEA warned that expanding such controls could jeopardize $6.5 trillion in annual downstream production outside China.

For mineral‑rich countries like Nigeria, these trends highlight both risk and opportunity. A tighter grip on refining by a few nations could limit access to processed materials, but the same push to diversify supply chains may open doors for new mining and processing projects if supportive policies and financing are put in place. The IEA also noted that public financing commitments for critical minerals more than quadrupled between 2023 and 2025, signaling growing state support for the sector.

What should you know or do? Policymakers, investors and industry players in Nigeria should monitor international trade measures, consider how to attract part of the growing public finance for mineral projects, and assess whether local resources can be positioned to serve alternative supply chains.

SOURCE: https://www.channelstv.com/2026/07/16/investment-in-critical-minerals-falls-in-2025-iea/