Critical mineral supply concentration, export restrictions may cause disruptions, IEA reports
The International Energy Agency (IEA) has indicated potential vulnerabilities in the supply chain of strategic minerals critical for the energy and technology sectors in its new 2025 Global Critical Minerals Outlook.
The report underscores the increasing concentration of supply in a few countries and the rise of export restrictions, which heighten the risk of market disruptions.
The IEA's report reveals that the market share of the top three producers for critical minerals such as cobalt, copper, graphite, lithium, nickel and rare earth elements increased to 86% in 2024 from around 82% in 2020.
Significant supply growth is coming from Indonesia for nickel and China for other minerals.
Despite policymakers' awareness of these challenges, the report suggests that diversification of supply chains is progressing slowly, with the top suppliers' market share projected to decline only marginally over the next decade.
Demand for energy minerals has surged, with lithium demand growing by nearly 30% in 2024.
However, increased supply, particularly from China, Indonesia and parts of Africa, has led to lower prices for battery metals.
Investment and exploration activities in critical minerals have shown signs of slowing down, which could pose future risks to supply.
The report specifically highlights the risks faced by the copper market, where a projected 30% supply deficit by 2035 could arise due to surging demand for expanding electricity networks.
The prevalence of export restrictions is also a concern, with 55% of strategic minerals now under some form of export control, affecting not only raw materials but also processing technologies.
China recently imposed export restrictions on rare earths in response to US tariffs.
China's dominance in refining 19 out of 20 of the strategic minerals analysed, coupled with high price volatility, underscores the economic impact of potential supply disruptions.
The IEA also examines supply chains for emerging battery technologies, noting the risks associated with China's control over key components.
"Critical mineral supply concentration, export restrictions may cause disruptions, IEA reports" was originally created and published by Mining Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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Additionally, AI-powered advanced software can create digital twins to optimize cooling parameters and reduce energy consumption for cooling. Adele: Cisco's new products now integrate both sustainability and security into the design process. Customers increasingly want to understand how we deploy, monitor, and optimize technology to address energy consumption, performance, and AI. According to a Gartner study, 'By 2030, more than 70% of data centers will monitor sustainability metrics, up from approximately 10% today.' (source: Gartner ®). Collaboration within the partner and customer ecosystem is key to modernization and efficient resource use. Coordinating diverse data — ranging from Cisco networking equipment to grid data, weather, location, and IT/OT systems — presents a complex but exciting challenge. With Splunk, we can streamline this process and generate the insights needed for effective information flow and optimization. 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We see the potential of AI to help address major challenges, but its success depends on modernizing the grid and data centers. Industrial IoT can play a key role in creating smart, more secure grids that maximize available energy, support diverse energy sources and enable predictive maintenance. Adele: We are partnering with customers eager for digital transformation, including energy companies supporting critical national infrastructure. Leveraging this shift, we are focusing on creating more sustainable solutions and we're building smart grids that prioritize efficiency. While AI is still in its early stages, ongoing collaboration and partnership with utilities is vital to ensure flexibility and adaptability for their evolving needs. Interested in learning more about the future of energy and the influence of AI? Join me in person as I lead a discussion about this topic at Cisco Live US in San Diego from June 8-12. The session will take place on Tuesday, June 10 from 2 to 2:30pm PT, and you can register here. Source: Gartner, [10 Performance Metrics to Improve Data Center Sustainability], [Henrique Cecci, Autumn Stanish], [14 February 2025] GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. View original content here. Visit 3BL Media to see more multimedia and stories from Cisco Systems Inc.
