From Yahoo Finance: 2025-05-21 08:46:00

The IEA’s 2025 Global Critical Minerals Outlook highlights supply chain vulnerabilities in energy and technology sectors due to increasing concentration in a few countries and export restrictions, with the top three producers holding 86% market share. Demand for energy minerals is rising, but investment and exploration in critical minerals are slowing down.

Supply growth from Indonesia and China for nickel and other minerals has led to lower prices for battery metals. The IEA report warns of a projected 30% supply deficit in the copper market by 2035, exacerbated by surging demand for expanding electricity networks. Slow progress in diversifying supply chains poses future risks to critical mineral supply.

China’s dominance in refining 19 out of 20 strategic minerals, coupled with high price volatility, underscores the economic impact of potential supply disruptions. The prevalence of export restrictions on 55% of strategic minerals, including rare earths, poses challenges to supply chains and processing technologies. China’s control over key components in emerging battery technologies raises concerns over supply chain risks.

In response to US tariffs, China imposed export restrictions on rare earths, adding to the challenges faced by critical mineral supply chains. The IEA report emphasizes the need for diversification and resilience in supply chains to mitigate risks of market disruptions.

Read more: Critical mineral supply concentration, export restrictions may cause disruptions, IEA reports