Capital is quietly returning to the earth across continents. Foreign investors are refocusing their strategies on tangible resources that feel incredibly resilient against global volatility, such as hydrogen hubs in Germany and lithium mines in Chile. The movement is more about securing resilience when everything else seems uncertain than it is about growth at any cost.
This reorganization of investments has been especially apparent in recent months. Nearly three-quarters of greenfield FDI now targets resource-based and technology-linked sectors, up from about five years ago, according to McKinsey’s analysis of global FDI. The change bears a striking resemblance to the post-war industrial boom that solidified manufacturing, steel, and energy as the foundation of economic stability.
| Aspect | Detail |
|---|---|
| Primary Focus | Investment shift toward resource and energy sectors driven by rising uncertainty and supply-chain disruption |
| Key Investment Areas | Critical minerals, renewables, low-emission hydrogen, semiconductor supply chains, and data centers |
| Influential Players | U.S., Europe, Middle East, China, and Southeast Asia investors and governments |
| Motivating Factors | Energy security, diversification, technology transformation, and resilience against geopolitical risk |
| Major Shift | Capital prioritizing stability, physical assets, and nearshore partnerships over distant expansion |
| Reference | https://www.mckinsey.com/mgi/our-research/the-future-of-fdi |
Energy is once again at the center. Investors are pouring enormous sums of money into cleaner power sources because energy independence is now a strategic goal rather than an environmental one. Since 2022, renewable energy and low-emission hydrogen have accounted for about 75% of new energy-related foreign direct investment, marking a remarkably successful shift away from the formerly dominant reliance on fossil fuels. These initiatives are viewed by governments as both national insurance policies against future shocks and climate tools.
Countries like the US, Canada, and Germany are creating investment ecosystems that draw capital into energy corridors that were previously thought to be too experimental by utilizing advanced analytics and policy incentives. For instance, the U.S. Inflation Reduction Act has sparked collaborations between American utilities and foreign investors from South Korea and Japan, bringing billions into the production of green hydrogen and battery storage. These partnerships are especially advantageous because they connect geopolitical alignment with technological innovation.
In the meantime, the materials that enable modern technology are receiving more attention from investors. Once thought of as niche commodities, copper, lithium, nickel, and rare earth elements are now essential to data centers, AI hardware, and electric cars. Critical mineral extraction and refining now account for about half of resource-sector FDI, with Argentina, Australia, and Indonesia emerging as top destinations. This new rush for raw materials is similar to the oil rush of the twenty-first century, but it is driven by sustainability and semiconductors.
In China, however, the situation has changed. China, which was once the center of manufacturing foreign direct investment, is now expanding its own investments abroad, especially in Latin America, Africa, and the Middle East. These areas provide opportunity and diversification due to their abundance of natural resources. As Western investors turn elsewhere, Chinese capital has dramatically increased its investment in solar and lithium infrastructure, indicating an attempt to gain upstream dominance. This dual dynamic—China investing overseas while others lower their exposure—shows how power in international finance is shifting rather than retreating.
The new premium for advanced economies is proximity. Supply chains are being significantly shortened by European and Japanese businesses, bringing production closer to politically stable allies. While European capital is pouring into North Sea energy grids, South Korea’s semiconductor giants are doubling their investment presence in Texas and Dresden. Despite the initial cost increases, this nearshoring trend has significantly increased investment certainty. The calculus is straightforward: scale is no longer as important as predictability.
This strategic mindset is highlighted by the emergence of “megadeals.” Once uncommon, projects worth more than $1 billion now make up almost half of all FDI. These are anchor projects that are influencing national economies, not speculative endeavors. Data centers, semiconductor factories, and battery gigafactories are examples of infrastructure and influence investments. Even though a single advanced fabrication facility can cost more than $10 billion, investors view these projects as incredibly dependable for ensuring long-term profits.
These changes in capital are still entwined with technology. According to PwC’s 2025 Global Investor Survey, 61% of investors still consider technology to be the most appealing industry, but the relationship between resource availability and digital advancement is becoming increasingly intertwined. For instance, data centers rely significantly on cooling systems and energy grids, which demand large amounts of material input. This convergence is especially novel because, whereas software used to be weightless, it now has a foundation made of silicon, steel, and copper.
Additionally, Middle Eastern sovereign wealth funds have taken a strong stand in this resource renaissance. Using oil wealth to finance a post-oil identity, the Qatar Investment Authority, Mubadala in the United Arab Emirates, and the Public Investment Fund in Saudi Arabia are investing in advanced metals and green hydrogen. Their approach ensures relevance in the new industrial era by being both symbolic and strategic. It’s an evolution rather than a reinvention, similar to how Norway’s petroleum fund changed its focus to sustainable investments decades ago.
Simultaneously, smaller economies are using innovative policy to make their mark. Stricter rules have been implemented in Chile, requiring foreign lithium investors to support local research and processing capacities. Permits to export nickel have been linked by Indonesia to commitments to domestic battery manufacturing. Despite their protective nature, these models have demonstrated remarkable efficacy in transforming the extraction of raw resources into enduring national advantage. This reassures investors that the modern investment ethos is defined by political partnership rather than exploitation.
It is impossible to overstate the social impact of these investments. Previously reliant on erratic commodity cycles, mining regions are now reaping the benefits of improved wages, new infrastructure, and community reinvestment. However, difficulties still exist. More attention is being paid to the environmental costs of increased extraction, especially for critical minerals. These days, investors must adhere to extremely strict sustainability standards or risk harming their reputation. Delivering profit without a purpose is no longer sufficient.
It’s interesting to note that increased interest in infrastructure and defense coincides with this renewed focus on resource sectors. Some investors are diversifying into defense-related industries, such as cybersecurity and satellite manufacturing, as geopolitical divisions widen. Building portfolios that can withstand shocks rather than chasing speculative highs is a larger resilience strategy that includes these actions. Capital is becoming noticeably more disciplined in this way, favoring longevity over spectacle.
In terms of money, the desire for tangible assets has come back strong. Hard assets like metals, energy pipelines, and real estate are becoming more common in diversified portfolios to offset exposure to erratic stocks. A “return to fundamentals,” where value is determined by tangibility rather than trend, is how many institutional investors characterize this. They are reducing exposure to currency fluctuations and policy turbulence that previously caught world markets off guard by distributing capital across several risk zones.
In the long run, this realignment suggests more than just changing portfolios. It is a philosophical correction, acknowledging that stable foundations are necessary for prosperity. Infrastructure, energy, and minerals are the foundation of the future, not relics of the past. Reliable inputs are becoming more and more necessary as automation, robotics, and artificial intelligence advance. In an era of uncertainty, investors who recognize this interdependence early on are setting themselves up for exceptional stability.
In the end, the increase in foreign investment in resource-related industries is transformative rather than just financial. It redefines how businesses define sustainability, how societies gauge progress, and how countries perceive security. This new economic choreography is both speculative and strategic, fluid and grounded. Once unrestrained and borderless, capital is now reestablishing itself—literally, rooted in the earth beneath us.
