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Critical Minerals

Critical Materials & MiningMaterials Updated 2026-07-27

Lithium, cobalt and rare earths remain essential to the energy transition — the IEA projects lithium demand will grow 40-fold by 2040 under net-zero scenarios — but the sector is still recovering from a severe 2022-2024 price downturn even as China retains 60-80% of global rare-earth processing capacity, 65% of cobalt refining and 35% of lithium processing, making Western supply-chain diversification as much a geopolitical project as a commercial one.

📈 What changed: 2026-07-23: Chinese lithium carbonate futures fell to a five-month low (~136,800 yuan/$20,210 per tonne on the Guangzhou Futures Exchange), down almost 30% from the mid-May 2026 h…

The Northstar view

Primary State
Price Recovery Amid Structural Demand Growth ImprovingRare-earth prices continuing a gradual recovery; lithium reversed to a five-month low in July 2026 as restarted supply revives 2027 glut fears
Near-Term Value
Government Reserve & Price-Floor Support ActiveUS Project Vault and 54-country price-floor mechanism support non-China production
Main Risk
Chinese Processing Dominance WatchChina retains 60-80% rare-earth, 65% cobalt, 35% lithium processing share
Conviction
Medium-High ImprovingHigh on structural demand, moderate on near-term pricing — Long-term demand growth is well-documented; near-term pricing remains cyclical
Next Trigger
Further major-miner consolidation (following Rio Tinto/Arcadium) OngoingWould confirm institutional conviction in the critical-minerals supply-chain thesis

Six-indicator scorecard

IndicatorScoreReading
Maturity
higher is better · high confidence
69/100
The lithium and rare-earth supply chain for the energy transition, now inseparable from the export-control and processing-mandate architecture covered under Resource Nationalism.
Evidence Strength
higher is better · high confidence
85/100
USGS, IEA and legal-analysis sources anchor this theme with well-corroborated figures on both demand growth and Chinese processing concentration.
Commercial Proximity
higher is better · high confidence
59/100
Real, scaled revenue exists, but pricing remains well below the 2022 peak even as demand growth projections remain extreme.
Capital & Policy Support
higher is better · high confidence
85/100
Directly overlaps with the Resource Nationalism policy architecture — export controls and reserve-building both function as tailwinds here.
Crowding Risk
lower is better · medium confidence
40/100
Recovering from a severe multi-year lithium bear market — positioning remains well below prior boom-era extremes.
Reflexivity Risk
lower is better · low confidence
64/100
Headline-sensitive to individual country policy announcements, layered atop genuine multi-year price-cycle dynamics.

Every indicator score is computed by the Northstar engine from analyst-set ordinal bands — never hand-written, never stored.

Related tickers

LYC.AXPLS.AXALBMPLACPLLUUUUNEO.TOSQMRIOSETMREMX LN

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