Policy Insights

Policy Insight 147: Escaping the critical minerals curse

• Rabah Arezki Frederick van der Ploeg
15 Oct 2025

A race is raging among the superpowers over critical minerals in developing countries to power the simultaneous energy and digital transitions that the world is experiencing. The extraordinary growth in demand for critical minerals is putting upward pressure on prices and stimulating new critical mineral discoveries around the world. In developing countries, the new bonanza from critical minerals presents opportunities but also important risks. In this Policy Insight, the authors argue that absent governance system shifts, developing countries risk facing a ‘critical minerals curse’.