Report: World's supply of critical minerals for clean energy is
concentrated in fewer countries
[May 21, 2025] By
DAVID McHUGH and ALEXA ST. JOHN
FRANKFURT, Germany (AP) — 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 industry 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% in 2024 from 82% 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%. 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. ”The impact of a
supply shock can be far-reaching, bringing higher prices for consumers
and reducing industrial competitiveness.”
Birol cited the energy crisis in Europe after Russia cut off natural gas
supplies over the invasion of Ukraine. Another cautionary tale is the
global shortage of silicon-based computer chips during and after the
pandemic, which disrupted auto production.
“The golden rule of energy security is diversification,” Birol told The
Associated Press in an interview. “And it goes beyond energy security,
it is also economic security."
Market forces are important in developing new sources but won't be
enough. “There is a need for well-designed government policies” in the
form of financing and other measures, he said.
[to top of second column] |
Bundles of copper cables sit at a plant that produces parts for
large electric vehicles in Mexico City, on April 2, 2025. (AP
Photo/Fernando Llano, File)
 China is a massive global source of
critical minerals required for a wide range of goods that includes
computer chips, robots, electric autos, batteries, drones, and
military equipment. It also dominates the refining and processing of
many of these critical minerals, including lithium, cobalt, graphite
and more.
China has placed export limits of many of these key products and
tightened controls on others as President Donald Trump’s trade
negotiations escalate, stifling U.S. industry and the nation’s
ability to find quick alternatives. Without access to China’s
significant reserves, U.S. manufacturers have a harder time
competing amid mounting global supply tensions.
Trump has made reducing U.S. dependence on foreign critical minerals
a core tenet of his first 100 days back in office as part of a
national security and economic resilience agenda.
This goes beyond China; the Trump administration finalized a rocky
deal with Ukraine granting American access to the nation’s vast
mineral resources earlier this month.
Trump is also looking to expedite deep-sea mining in international
waters, much to the chagrin of environmental groups. He called for a
boost in the domestic copper industry in a February executive order
alongside other calls for the federal government to fast-track new
mine permits; has reviewed a minerals proposal from Congo, a
conflict-riddled nation also rich with mineral reserves; and
attempted to strong-arm Greenland into providing more of its
minerals to the U.S.
The IEA report said that global markets were well supplied at the
moment and that prices in general have fallen. It warned however
that planned production of copper, which is essential for electric
wiring and power grids, would not keep pace with demand and
predicted a 30% shortfall by 2030.
—-
St. John contributed from Detroit, Michigan.
All contents © copyright 2025 Associated Press. All rights reserved |
