Critical mineral M&A falls 39% in 2024 as lithium prices, demand cool

PwC report says M&A in critical minerals dropped sharply in 2024 as lithium prices plunged, supply fears eased and governments tightened scrutiny on strategic resources

Global deal-making in critical minerals weakened in 2024 as easing supply fears and falling lithium prices dampened merger and acquisition (M&A) activity, according to a PwC report.

 

“The value and volume of deals fell in 2024, with energy transition minerals accounting for a smaller share of activity than in years past,” the report said.

 

The total number of critical mineral M&A deals dropped to 245 in 2024, down 43 per cent from 428 in 2023. The value of these deals fell from $17.7 billion to $10.8 billion during the same period, a decline of 39 per cent.

 

This marked a sharp reversal from the surge of investment seen in earlier years during the global clean energy transition push. Between 2021 and 2023, the number of deals increased by 52 per cent while the value of deals rose by 247 per cent.

 

The study linked the decline in transaction volumes directly to lithium carbonate price trends. Deals in lithium shrank from more than 60 in the first quarter of 2023 to just 10 in the final quarter of 2024. Over the same period, prices collapsed from $65,000 a tonne to $10,000 a tonne. With new supply from Australia, Chile and China outpacing demand, investor appetite cooled. “As fears over scarcity abate, prices and deals fall,” the report noted.

 

The broader environment added further headwinds. “Rising asset valuations are making deals more expensive and may slow decision-making as buyers reassess risks and returns,” the report said. 

At the same time, governments tightened control over strategic resources. The report observed that “heightened regulatory scrutiny, resource nationalism and tariff uncertainties are complicating cross-border deals and supply chains.”

 

However, not all commodities faced the same cooling. Gold and silver saw a wave of consolidation as record prices spurred large transactions. By contrast, critical minerals—despite their importance for decarbonisation—lost momentum in M&A deals.

 

The report also listed the top 40 global mining companies in 2025. Only two Indian firms featured in the ranking, with Coal India Ltd at 16th place and Hindustan Zinc Ltd at 20th.