The International Energy Agency (IEA) has raised concerns about the increasing global reliance on a small number of countries for critical minerals, which are essential for clean energy technologies. In its latest report, the IEA highlights that the top three producers of key minerals like lithium, cobalt, copper, graphite, and rare earth elements now control an estimated 86% of the global market. This marks a rise from 82% in 2020, signaling growing concentration within the sector.

A major point of concern is China’s overwhelming dominance in the supply chain. The report reveals that China is responsible for refining 19 out of the 20 key minerals needed for energy transition technologies, controlling around 70% of the global processing capacity. This concentration of control has raised alarm about potential vulnerabilities, including supply disruptions due to geopolitical tensions, natural disasters, or trade restrictions.

The IEA also warns that the ongoing dependence on a few countries for critical minerals could create significant challenges, particularly in terms of meeting the growing demand for these resources. For example, copper, a key component in renewable energy infrastructure, is expected to face a 30% supply shortfall by 2035, which could drive up prices and hinder the global shift toward low-carbon energy solutions.

To address these risks, the IEA urges governments to take immediate action to diversify supply chains and reduce the geopolitical risks tied to critical mineral dependency. In response, some Western nations have begun to strengthen efforts to lessen their reliance on China. The United States, for instance, has implemented policies to boost domestic production of critical minerals, including tariffs on imports and international agreements aimed at securing more stable supply sources.

In addition, a coalition of 14 countries along with the European Commission has launched an initiative to fund critical mineral projects and reduce reliance on China. This growing international focus reflects the urgency of securing a stable and diversified supply chain for the transition to clean energy.

The IEA’s report underscores the importance of global collaboration to ensure the sustainable and secure supply of critical minerals, which will be essential for achieving global climate goals.