Critical Minerals Market to Reach USD 586.63 Billion by 2032, Driven by Energy Transition and Electric Mobility Demand | DataM Intelligence

AUSTIN, Texas and TOKYO, Nov. 5, 2025 /PRNewswire/ -- According to DataM Intelligence, the Critical Minerals Market Size is expanding from USD 328.19 billion in 2024 to USD 586.63 billion by 2032, at a CAGR of 7.53% during 2025–2032. The demand surge stems from accelerating clean energy deployment, electric vehicle (EV) manufacturing, battery production, and renewable energy infrastructure.

Critical minerals-including lithium, nickel, cobalt, rare earth elements (REEs), and graphite-form the backbone of global decarbonization strategies, serving as essential inputs for batteries, wind turbines, solar cells, and electric drivetrains. The convergence of policy reforms, technological innovation, and supply-chain diversification has turned these minerals into strategic economic resources.

Quantitative Growth Drivers

• Global EV production exceeded 14 million units in 2024, requiring over 1.1 million tons of lithium carbonate equivalent (LCE) a 30% YoY increase.
• Renewable energy capacity additions surpassed 500 GW in 2024, consuming approximately 20% more rare earth materials than the previous year.
• Battery metals (lithium, cobalt, nickel, graphite) collectively accounted for USD 115 billion in 2024, projected to exceed USD 240 billion by 2032.
• Governments across the U.S., EU, Japan, and Australia allocated more than USD 60 billion in 2024 toward critical mineral exploration, recycling, and processing independence.
• Recycling and circular economy initiatives could supply up to 17% of global demand by 2032, easing supply risk pressures and supporting sustainability targets.

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Browse in-depth TOC on "Critical Minerals Market" 

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Market Segmentation Analysis

By Mineral Type

The market is segmented into Lithium, Nickel, Cobalt, Graphite, Rare Earth Elements (REEs), and Others (Manganese, Tungsten, Platinum Group Metals, etc.).

• Lithium dominates with 24% share (USD 78 billion in 2024), expected to surpass USD 145 billion by 2032, driven by EV battery and energy storage demand.
• Nickel accounts for 18% (USD 59 billion), with growth linked to high-nickel cathode chemistry adoption and stainless-steel applications.
• Cobalt holds 10% (USD 33 billion), with diversification efforts in Indonesia and Morocco offsetting supply concentration in the DRC.
• Graphite represents 12% (USD 39 billion), critical for anodes in lithium-ion batteries, projected to reach USD 70 billion by 2032.
• Rare Earth Elements (REEs), including neodymium, praseodymium, and dysprosium, account for 20% (USD 66 billion) and are expected to double by 2032 due to magnets used in EVs and wind turbines.

By Extraction Method

• Primary Mining remains dominant with 80% share (USD 262 billion in 2024), expected to grow to USD 440 billion by 2032, supported by expanded mining in Australia, Canada, and Africa.
• Secondary Recovery (Recycling & Urban Mining) is emerging rapidly, growing at 11% CAGR, rising from USD 66 billion in 2024 to nearly USD 145 billion by 2032.
  Recycled lithium, cobalt, and nickel are expected to supply 15–18% of battery material needs by 2032, substantially reducing dependence on virgin extraction.

By Application

The critical minerals market is broadly segmented across Energy Storage, Electric Vehicles, Electronics, Industrial Alloys, and Others.

• Energy Storage & Batteries dominate with 42% share (USD 138 billion in 2024) and will exceed USD 270 billion by 2032, reflecting the rapid scale-up of gigafactories.
• Electric Vehicles contribute 30% share (USD 99 billion), expected to grow at 8.4% CAGR, supported by robust automotive electrification policies in the U.S., EU, and China.
• Electronics and Semiconductor Manufacturing account for 15% (USD 49 billion), where high-purity metals and REEs play essential roles in chip production.
• Industrial Alloys & Magnets represent 10% (USD 33 billion), while Other applications (e.g., defense, aerospace, catalysts) comprise the remainder.

Regional Insights

United States

The U.S. critical minerals market was valued at USD 70 billion in 2024 and is projected to exceed USD 130 billion by 2032, growing at 7.8% CAGR.

• The Inflation Reduction Act (IRA) and U.S. Critical Minerals Strategy 2024 allocate USD 6 billion for domestic refining and recycling.
• Over 30 new projects in lithium and rare earth processing are underway across Nevada, Texas, and Wyoming.
• U.S. lithium output is expected to grow 5× by 2030, with companies like Albemarle expanding capacity to over 400,000 tons LCE annually.

Japan

Japan's critical minerals market reached USD 19 billion in 2024 and is expected to hit USD 36 billion by 2032, at 8.1% CAGR.

• Japan imported over 90% of its critical minerals in 2024 but is now investing USD 2.5 billion in recycling and overseas partnerships (notably with Australia and Canada).
• Leading Japanese automakers such as Toyota and Honda have secured long-term lithium and nickel contracts to stabilize supply chains.
• The country aims to recycle 20% of rare earths and battery metals domestically by 2030 under its Green Innovation Fund initiative.

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Competitive Landscape

According to DataM Intelligence, the critical minerals market is moderately consolidated, with top mining and materials companies controlling over 65% of global production.

Key Players:
Albemarle Corporation | Livent Corporation | Lynas Rare Earths Limited | MP Materials Corp. | China Northern Rare Earth (Group) High-Tech Co., Ltd. | Glencore plc | Iluka Resources Limited | Rio Tinto Group | Pilbara Minerals Limited | Canada Nickel Company Inc.

Key Highlights:

• Albemarle Corporation reported USD 9.6 billion revenue, with lithium sales contributing 75%.
• Livent Corporation achieved USD 900 million revenue, expanding lithium hydroxide output by 25% YoY.
• Lynas Rare Earths produced 20,000 tons of rare earth oxides, representing 7% of global supply.
• Glencore plc generated USD 17 billion from battery metals and recycling, expanding nickel operations in Canada.
• Pilbara Minerals shipped 680,000 tons of spodumene concentrate, up 33% YoY, reinforcing its role in the lithium supply chain.
• Rio Tinto Group invested USD 2.4 billion in critical mineral expansion projects, including Jadar Lithium (Serbia) and Oyu Tolgoi Copper (Mongolia).

Recent Industry Developments

• Albemarle launched a new USD 1.3 billion lithium refinery in North Carolina to strengthen U.S. supply autonomy (April 2025).
• Glencore signed a multi-year recycling partnership with Li-Cycle Holdings to recover lithium, cobalt, and nickel from EV batteries (February 2025).
• Lynas Rare Earths expanded capacity at its Malaysian facility by 30%, boosting REE separation output (March 2025).
• Rio Tinto acquired Sabina Gold & Silver Corp. to secure access to critical byproduct metals (January 2025).
• Pilbara Minerals announced a USD 500 million downstream JV with POSCO for lithium hydroxide conversion (December 2024).

Market Outlook and Opportunities

The critical minerals market will remain a strategic pillar of the global energy transition over the next decade.

Key Forecast Indicators:

• Battery metals to represent 46% of total market revenue by 2032, surpassing USD 270 billion.
• Recycling and urban mining to supply 17% of global demand, reducing raw material dependency.
• Asia-Pacific to retain dominance with 52% market share, while North America grows fastest at 8.2% CAGR.
• Rare earth and lithium investments projected to exceed USD 100 billion globally by 2032.
• Carbon-neutral extraction and processing technologies expected to cut emissions by 35% per ton of output across leading producers.

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Conclusion

The Critical Minerals Market stands at the forefront of the clean energy revolution. Expanding from USD 328.19 billion in 2024 to USD 586.63 billion by 2032, the market's 7.53% CAGR underscores the global race to secure resilient and sustainable mineral supply chains.

According to DataM Intelligence, top players such as Albemarle, Rio Tinto, Lynas Rare Earths, and Glencore are strategically investing in extraction, refining, and recycling capabilities to meet surging demand from EVs, batteries, and renewable energy sectors. With strong policy backing and technological advancements, critical minerals are becoming the new cornerstone of global industrial competitiveness and energy security.

Related Report:

1. Rare Earth Elements Market Share Set to Grow at 9.4% CAGR Through 2031 - DataM Intelligence
2. Lithium Market Size to Explode from US$ 9.3 B in 2023 to US$ 38.8 B by 2031 - DataM Intelligence
3. Cobalt Market Size to Grow from US$ 17.12 B in 2024 to US$ 29.86 B by 2032 - DataM Intelligence
4. Nickel Market Size to Grow from US$ 33.6 B in 2022 to US$ 47.2 B by 2031 - DataM Intelligence
5. Graphite Market Size to Reach US$ 38.5 Billion by 2031 - DataM Intelligence" (from US$ 23.8 B in 2023, CAGR 6.2%)
6. Tungsten Market Size to Reach US$ 9.65 B by 2032 on the Back of Industrial & Strategic Demand - DataM Intelligence
7. Copper Market Set to Surge: Industry Poised for Major Growth Amid Electrification & Infrastructure Boom

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