Critical minerals supply dominated by China: IEA

The world’s sources of critical minerals are increasingly concentrated in just a few countries, most notably China, leaving the global economy vulnerable to supply cutoffs that could disrupt economies and hit consumers with higher prices, a report said Wednesday.

- 

The Paris-based International Energy Agency's report looked at the availability of minerals and metals that may be small in quantity but large in impact when it comes to shifting the economy away from fossil fuels toward electricity and renewable energy.

It found that for copper, lithium, cobalt, graphite and rare earth elements, the average market share of the three top producing countries rose to 86 per cent in 2024 from 82 per cent in 2020.

China is the leading refiner for 19 out of 20 strategic minerals studied in the report, and has an average share of around 75 per cent. Indonesia showed strong growth in nickel, a key component in making steel and batteries for electric vehicles.

The current trend toward export restrictions and trade disputes increases concerns, the IEA said.

"Critical mineral supply chains can be highly vulnerable to supply shocks, be they from extreme weather, a technical failure or trade disruptions," said IEA executive director Fatih Birol.