Marktlink → Sectors → Materials & Energy → Raw Materials

  • Updated February 27, 2026

Supply security drives strategic interest

Raw materials M&A has always been cyclical. What has changed is the structural overlay: critical minerals, supply chain reshoring, and circular economy mandates are creating sustained buyer interest beyond commodity cycles. Companies positioned in battery materials, recycling, or specialty processing are attracting strategic premiums that defy traditional commodity valuation logic.

Jeroen van den Berg

Sector Lead Consumer • 14 years • 90+ transactions

“Raw materials is the most cyclical sector we work in, but the narrative has changed fundamentally. Supply security and critical minerals have moved from boardroom buzzwords to M&A drivers. Companies positioned in the circular economy or critical mineral supply chains are seeing buyer interest that simply did not exist five years ago.”

Sector at a Glance

  • Updated March 2, 2026
VALUATION RANGE

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↑ +0.1x vs 2024

EBITDA Multiple
Deals in 2025

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Active Buyers

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Valuation Development

Raw materials valuations follow commodity cycles but are increasingly influenced by strategic supply security considerations.

5-Year Multiple Range

2021 PEAK

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Commodity supercycle recovery

2023 DIP

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Sharp correction: destocking

2025 NOW

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Supply security premium emerging

Subsegment Analysis

Critical Minerals & Battery Materials

[XX] deals in 2025

Multiple Range

0.0x  – 0.0x

+0.5x
Buyer Mix
PE 25% • Strategic 60%
Key Valuation Driver
Strategic supply chain positioning and government policy
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Metals Processing & Alloys

[XX] deals in 2025

Multiple Range

0.0x – 0.0x

+0.1x
Buyer Mix
PE 20% • Strategic 65%
Key Valuation Driver
Capacity utilization and specialty grade capability
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Building & Construction Materials

[XX] deals in 2025

Multiple Range

0x – 0x

+0.0x
Buyer Mix
PE 20% • Strategic 65%
Key Valuation Driver
Geographic monopoly and infrastructure pipeline
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Recycling & Circular Materials

[XX] deals in 2025

Multiple Range

0.0x  – 0x

+0.6x
Buyer Mix
PE 35% • Strategic 50%
Key Valuation Driver
Regulatory mandate and feedstock security
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Buyer Landscape 2025

Overall Buyer Type Distribution

  • What drives premium valuations

Critical mineral supply chain positioning

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Recycling/circular economy capability with tech

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Long-term offtake/supply agreements

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Specialty grade/high-purity capability

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Permitted reserves and expansion rights

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Which of these buyers match your firm?

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Recent Transactions

Supply Security Premium

Critical Minerals

Specialized processor of lithium compounds and battery-grade materials for European EV manufacturers, with long-term offtake agreements

REVENUE

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EBITDA

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DURATION

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Battery-grade processing
70% offtake agreements
European supply chain

Key Insight

Supply chain security was the primary driver. The buyer was willing to pay a significant premium to secure European processing capacity for battery-grade materials. The 70% contracted offtake base eliminated commodity risk from the valuation equation.

Circular Economy Premium

Circular Materials

Specialist in medium-voltage grid components and smart grid solutions for utility customers, with proprietary monitoring technology

REVENUE

€0.0M

EBITDA

€0.0M

MULTIPLE

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DURATION

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Proprietary sorting tech
E-waste processing
Municipal contracts

Key Insight

The proprietary sorting technology was the key differentiator. The PE buyer valued the regulatory tailwind from EU circular economy mandates and the growing gap between virgin and recycled material costs. This is a segment where multiples are trending up fast.

Qualification Premium

Metals Processing

Producer of specialty high-performance alloys for aerospace and medical device applications, with customer qualification processes and small batch capability

REVENUE

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EBITDA

€0.0M

MULTIPLE

0.0x

DURATION

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Aerospace certified
Medical device qualified
Small batch capability

Key Insight

Aerospace and medical device qualification processes create significant barriers to entry. Once qualified, switching costs are prohibitive. The buyer paid a premium over basic metals processing for these customer relationships and certifications.

Reserve Life Discount

Building Materials

Sand and gravel producer with permitted quarry sites serving regional construction market, limited remaining reserves

REVENUE

€0.0M

EBITDA

€0.0M

MULTIPLE

0.0x

DURATION

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Permitted quarry sites
Limited reserves
Regional monopoly

Key Insight

Permitting and reserve life are everything in aggregates. Despite solid cash flows, the limited remaining reserves capped the valuation. Companies with longer reserve life and expansion permits achieve 1-2x higher multiples.

Recognize yourself in these cases? Compare your situation.

Market Trends 2025

Critical minerals reshape M&A landscape

Mining M&A deal volume surged 42% year-over-year in 2025 as strategic buyers scramble for copper, lithium, and nickel assets. Government critical minerals policies are accelerating consolidation across the supply chain.

Source: FactSet Metals & Mining 2025

+0%

mining deal volume YoY

Supply chain reshoring drives strategic premiums

Governments across Europe are promoting domestic refining and critical mineral development to reduce import dependence. This is creating strategic premiums for European-based processing and recycling companies.

Source: McKinsey Materials 2025, PwC DACH

€0B

EU/national investment programs

Circular economy from niche to M&A mainstream

Recycling and urban mining companies are the fastest-growing segment in raw materials M&A. EU circular economy mandates, rising virgin material costs, and ESG-driven buyer mandates are creating sustained demand.

Source: IHS Markit, CEFIC

+0.0x

recycling trend vs 2024

Traditional materials face cyclical compression

Metals and mining revenues declined 6% in 2024 as commodity prices normalized. Profit pools shifted from thermal coal and steel toward gold, copper, and aluminum. Commodity-exposed businesses without differentiation face multiple compression.

Source: McKinsey Global Materials 2025

–0%

mining revenues 2024

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Industry Report 2025

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