The world’s supply of critical minerals needed for clean energy is becoming more concentrated in a few countries, especially China, raising concerns about economic vulnerability and potential supply disruptions, according to a new report by the International Energy Agency (IEA) released Wednesday.The report analysed the supply of key minerals and metals that, although used in small amounts, are crucial for the shift from fossil fuels to electricity and renewable energy. The research further revealed that for copper, lithium, cobalt, graphite and rare earth elements, the combined market share of the top three producing nations increased to 86% in 2024 from 82% in 2020.China refines 19 out of the 20 key minerals studied in the report, holding about 75% of the global market share. Indonesia has also made strong progress in producing nickel, which is important for making steel and batteries for electric vehicles.The IEA expressed concerns about increasing export limitations and trade conflicts. “Critical mineral supply chains can be highly vulnerable to supply shocks, be they from extreme weather, a technical failure or trade disruptions,” the IEA executive director Fatih Birol told The Associated Press.“The impact of a supply shock can be far-reaching, bringing higher prices for consumers and reducing industrial competitiveness,” Birol noted.Birol further cited Europe’s energy crisis following Russia’s natural gas supply reduction over the Ukraine conflict. He also mentioned the global silicon-based computer chip shortage during and after the pandemic that affected automobile production.China is a major global supplier of critical minerals used in products like computer chips, electric vehicles, batteries, drones, robots, and military equipment. It also leads in refining and processing key minerals such as lithium, cobalt, and graphite.In recent years, China has tightened export controls on many of these materials, especially during trade tensions with the US under President Donald Trump. These restrictions have made it harder for US industries to find alternative sources, affecting their competitiveness and increasing pressure on global supply chains.Trump has prioritised reducing US reliance on foreign critical minerals as a fundamental component of his first 100 days back in office, as part of national security and economic resilience initiatives.The situation extends beyond China; the Trump administration recently concluded a complex agreement with Ukraine, securing American access to their substantial mineral resources.Trump has pushed for deep-sea mining in international waters, despite opposition from environmental groups. He has also called for expanding the domestic copper industry through a February executive order and urged faster approvals for new mining projects. Trump reviewed a mining proposal from the mineral-rich but conflict-prone Congo and even tried to pressure Greenland into supplying more minerals to the US.Meanwhile, the International Energy Agency (IEA) reported that while global markets currently have adequate mineral supplies and prices are generally down, copper production is not expected to meet future demand. The agency warned of a possible 30% shortfall in copper—vital for electric wiring and power grids—by 2030.
