Commodity Mergers and Acquisitions in 2024: A Comprehensive Review of Lithium, Copper, Silver, and Gold
The global commodities market is a crucial pillar of the world economy, providing essential raw materials for industries ranging from energy to technology. In 2024, the commodity space continued to be a focal point of mergers, acquisitions, and investments, reflecting both the resilience of the sector and the ongoing demand for resources critical to the global energy transition. With a total value of mergers and acquisitions (M&A) reaching $3.5 trillion globally, the market saw an 8% rise in mining sector deals, especially driven by the high demand for essential minerals such as lithium, copper, silver, and gold. The surge in deal-making has been influenced by various factors, including market volatility, increasing resource scarcity, and a growing appetite for diversification. This article explores the key developments in the lithium, copper, silver, and gold sectors throughout 2024 and analyzes the trends that may shape the market in the years to come.
Activity in the Lithium Space
The lithium sector, essential for battery production in electric vehicles (EVs) and renewable energy storage, remained one of the hottest areas for M&A in 2024. With global demand for lithium soaring as part of the energy transition, major players have sought to consolidate their positions and secure long-term supply chains. Noteworthy deals included Rio Tinto’s $6.7 billion acquisition of Arcadium Lithium, positioning the company as a dominant force in the lithium market. In addition, General Motors made a strategic investment in the Thacker Pass lithium mine, increasing its stake to nearly $1 billion to ensure a sustainable lithium supply for EV production. Livent and Allkem merged to form Arcadium Lithium, solidifying their standing in the market. These moves underscore the critical role of lithium in the global shift toward sustainable energy and electric mobility.
Activity in the Copper Space
Copper, a fundamental metal for electrical wiring, renewable energy, and electric vehicles, also saw significant activity in 2024. In the U.S. upstream oil and gas sector, which also includes copper production from key regions, deal-making hit $105 billion. This figure was slightly down from the record high in 2023 but still showed strong engagement. Among the key players, Pilbara Minerals announced its acquisition of Latin Resources to gain access to the Salinas copper project in Brazil. Meanwhile, BHP and Lundin Mining’s joint acquisition of Filo Corp. for $3.2 billion further solidified their control over copper projects in South America. Additionally, Zambia’s state-owned ZCCM-IH acquired a majority stake in Mopani Copper Mines for $1.1 billion, bringing national control over copper resources in one of Africa’s largest copper-producing nations. These deals are indicative of copper’s central role in the global drive for cleaner energy, as it is integral to renewable energy infrastructure, especially in electric vehicles and wind turbines.
Activity in the Silver Space
The silver market also experienced significant consolidation, with several key deals shaping the future landscape of this precious metal. Coeur Mining’s $1.7 billion acquisition of SilverCrest Metals was one of the standout deals of the year. This transaction will provide Coeur with SilverCrest’s low-cost, high-grade mine in Mexico, bolstering its position as a leading silver producer. Another significant move occurred when First Majestic Silver agreed to acquire Gatos Silver for $970 million, further solidifying its position in Mexico’s lucrative silver mining industry. The Americas Gold and Silver Corporation also took action by acquiring the remaining 40% stake in the Galena Complex, enhancing its foothold in the silver space. These transactions highlight silver’s importance in both traditional industries, such as jewelry and electronics, as well as emerging sectors like solar energy, where silver is used in photovoltaic cells.
Activity in the Gold Space
The gold sector remained resilient in 2024, with several key mergers and acquisitions underscoring the sector’s continued appeal as a hedge against economic uncertainty. AngloGold Ashanti’s $2.5 billion acquisition of Centamin added the Sukari Gold Mine in Egypt to its portfolio, significantly boosting its gold production capacity. In addition, Coeur Mining’s acquisition of SilverCrest Metals was also an important deal for gold, as the company expects to increase its output of both gold and silver significantly. Metals Exploration proposed a £67.5 million bid for Condor Gold, highlighting a continued appetite for consolidation in the gold sector as companies look to scale up amid favorable gold prices. These moves reflect the enduring value of gold in portfolios, especially during times of geopolitical instability and inflationary pressures.
Conclusion: Why Activity Is Expected to Remain Steady in 2025 and Beyond
Looking ahead, it is expected that M&A activity in the commodity sector will remain steady in 2025 and beyond. The ongoing demand for critical minerals—particularly lithium, copper, silver, and gold—will continue to drive consolidation as companies seek to secure supply chains and bolster production capabilities. Furthermore, geopolitical tensions, economic uncertainty, and the growing demand for sustainable energy will create a favorable environment for continued investment in the sector. Companies are likely to remain cautious about valuations, yet the strategic importance of key commodities in the energy transition will fuel ongoing deal-making. As industries continue to focus on electric vehicles, renewable energy, and infrastructure, commodities will remain at the forefront of economic growth and innovation, ensuring that activity in the sector remains robust in the years to come.
