Join our daily newsletter At The Bell to receive exclusive market insights
Which critical mineral has the capacity to prevent as many as 200,000 childhood deaths every year? If you had said zinc, then you would have been right.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
While it stands as the 24th most abundant element in the Earth’s crust and the fourth-most used metal worldwide, zinc has only relatively recently been included on the critical minerals lists for a number of nations.
Most Australians would associate zinc with something you rub on your nose to prevent sunburn; in some areas, zinc is considered the secret base metal that is critical to reaching net-zero carbon emission targets.
The metal is used to make more efficient solar panels and smaller, lighter batteries, which is increasing demand while simultaneously putting pressure on the supply chain.
Industrial economies rely on zinc as a cornerstone metal, with 13.86 million tons of global refined zinc consumed in CY25, according to an international lead and zinc study group. This represented a 1.9% increase year-over-year, demonstrating zinc’s essential position across multiple economic sectors despite the persistent global zinc market deficit and ongoing supply challenges.
Growing demand for rechargeable batteries for things like EVs and energy storage is another area where zinc demand is forecast to grow. New scientific breakthroughs have increased battery developers’ interest in zinc as a key component and a potential replacement for lithium in energy storage technology.
The concern is that forecasts of supplies of the critical metal may not meet demand. The global zinc market deficit reached 33K metric tons in CY25. While that represented a 52% improvement from the previous year’s 69K-ton shortfall, the persistent deficit reveals structural imbalances between consumption requirements and production capacity, despite apparent supply chain improvements.
For its part, Australia is a key player in helping supply the global market. After zinc mining in Australia began almost 150 years ago, the nation currently holds 28% of the world’s known zinc resources and accounted for 16% of the world’s zinc ore and concentrates imports/exports in 2024.
The latest Resources and Energy Quarterly report produced by the federal government forecast that a nickel price surge in late CY25 will stay steady to CY27.
Production numbers are on the rise, with the restart of the Endeavour mine and increased output at McArthur River and Dugald River, both positive signs.
The nation’s refined output grew by 2.1% in the first nine months of CY25, mainly due to increased output at Sun Metals’ Townsville zinc refinery. Future output is expected to be higher again, with increased output at Townsville to persist alongside steady output from the Nyrstar Hobart smelter in Tasmania.
Exports earnings for CY25–26 and CY26–27 were revised up by $440 million and $208 million, respectively, driven mainly by higher forecast prices.
There is a significant collection of zinc miners on the ASX, ranging from major producers to explorers, with key players including MMG (ASX:MMG), Aurelia Metals (ASX:AMI), Polymetal Resources (ASX:POL), and Rumble Resources (ASX:RTR). Other notable companies focusing on zinc projects or development include Zinc of Ireland (ASX:ZMI), Zenith Minerals (ASX:ZNC), and Broken Hill Mines.
Join the discussion. See what’s trending right now on Australia’s largest stock forum and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
