Global Mineral Monopoly: China's Strategic Hold on Critical Resources

A report from the International Energy Agency highlights how the global economy is vulnerable due to the concentration of critical mineral sources, notably in China. The dominance impacts the shift towards renewable energy. China's control over refining key minerals exacerbates trade tensions and security concerns.

The International Energy Agency's recent report underscores the increasing concentration of critical mineral sources in a few countries, with China at the forefront. This trend poses significant risks to global economies, potentially leading to supply disruptions and high consumer prices.

These minerals, including copper, lithium, and cobalt, are vital for transitioning from fossil fuels to renewable energy but are largely controlled by a few powerhouse nations. The IEA highlights that the market share of top-producing countries has reached 86% in 2024, making the supply chain prone to geopolitical tensions and trade disputes.

China dominates the refining and processing scene for most critical minerals. The IEA alerts that failure to diversify supply sources could mirror past supply shocks, such as Europe's energy crisis post-Russia's gas cutoff. In response, former President Trump had pushed for reducing dependency on foreign minerals, accelerating domestic and international mining projects, despite environmental concerns.

(With inputs from agencies.)