IEA Warns Critical Minerals Supply Concentrated in Few Countries

The International Energy Agency (IEA) warns that the global supply of critical minerals essential for clean energy technologies is becoming increasingly concentrated in a few countries, particularly China, raising concerns over economic and energy security. The market share of the top three producing countries for minerals such as copper, lithium, cobalt, graphite, and rare earth elements increased from 82% in 2020 to 86% in 2024, with China dominating refining for 19 of 20 critical minerals and Indonesia emerging as a key nickel supplier. This high concentration makes supply chains vulnerable to disruptions from geopolitical tensions, extreme weather, technical failures, or trade restrictions, which could lead to higher prices and reduced industrial competitiveness. The IEA projects only a marginal decrease in supply concentration by 2035, while some minerals like copper and lithium face potential supply deficits amid rising demand. Executive Director Fatih Birol emphasizes the urgent need for diversification through government policies and financing alongside market-driven investment to mitigate risks and ensure reliability and sustainability in energy supply chains. Recent disruptions, including the European energy crisis and global chip shortages, underscore the critical importance of diversified and resilient supply chains.