Latest news with #GlobalCriticalMineralsOutlook
India Gazette
2 days ago
- Business
- India Gazette
Critical mineral investments stalled by economic uncertainty despite strong demand outlook: IEA
New Delhi [India], June 8 (ANI): Investment decisions in the global critical mineral sector face significant market and economic uncertainties, despite strong expectations for future demand growth, according to the International Energy Agency (IEA). In its Global Critical Minerals Outlook 2025, the IEA added that investment momentum in critical minerals development weakened in 2024, rising just 5 per cent compared to 14 per cent in 2023. Adjusted for cost inflation, real investment growth stood at only 2 per cent, reflecting growing economic and market uncertainties despite strong long-term demand expectations. According to IEA, exploration activity plateaued after consistent growth since 2020. While spending rose for lithium, uranium, and copper, it declined sharply for nickel, cobalt, and zinc. The funding in startups also slowed, the IEA report added. The low mineral prices failed to trigger new investments and affected projects led by new market entrants. The report added that diversification is the watchword for energy security, but the critical minerals world has moved in the opposite direction in recent years, particularly in refining and processing. Between 2020 and 2024, growth in refined material production was heavily concentrated among the leading suppliers. As a result, the geographic concentration of refining has increased across nearly all critical minerals, particularly for nickel and cobalt, the report added. The average market share of the top three refining nations of key energy minerals rose from around 82 per cent in 2020 to 86 per cent in 2024 as some 90 per cent of supply growth came from the top single supplier alone: Indonesia for nickel and China for cobalt, graphite and rare earths. The report further notes that, despite surging demand, significant supply expansions--primarily from China, Indonesia, and the Democratic Republic of the Congo--have driven prices down, particularly for battery metals. The IEA said that the swift increase in battery metal production highlighted the sector's ability to scale up new supply more quickly than for traditional metals like copper and zinc. Since 2020, supply growth for battery metals has been twice the rate seen in the late 2010s. As a result, following the sharp price surges of 2021 and 2022, prices for key energy minerals have continued to decline and have returned to pre-pandemic levels. Lithium prices, which had surged eightfold during 2021-22, fell by over 80 per cent since 2023. Graphite, cobalt, and nickel prices also dropped by 10 to 20 per cent in 2024. Critical minerals such as copper, lithium, nickel, cobalt and rare earth elements are essential components of many of today's rapidly growing energy technologies - from wind turbines and electricity networks to electric vehicles. Demand for these materials is growing quickly as energy transitions gather pace. (ANI)
Yahoo
21-05-2025
- Business
- Yahoo
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.
Time of India
21-05-2025
- Business
- Time of India
IEA warns of growing global dependence on few nations for critical minerals, highlights China's dominance
The global supply of critical minerals essential for clean energy technologies is becoming increasingly concentrated in a handful of countries, particularly China, posing a significant risk to global economic stability, according to a report released Wednesday by the International Energy Agency ( IEA ). The Paris-based agency's 'Global Critical Minerals Outlook' highlights the strategic vulnerabilities stemming from the limited diversification of key mineral sources—such as copper, lithium, cobalt, graphite, and rare earth elements—which are crucial for manufacturing electric vehicles, batteries, wind turbines, and other clean energy infrastructure. The report found that the market share held by the top three producing countries for these minerals rose to 86 per cent in 2024, up from 82 per cent in 2020. China, in particular, has solidified its position as the world's leading refiner for 19 of the 20 most critical minerals, with an average global refining share of around 75 per cent. Indonesia has also emerged as a key player in nickel production, driven by its expanding role in stainless steel and battery component manufacturing. '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. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Device Made My Power Bill Drop Overnight elecTrick - Save upto 80% on Power Bill Pre-Order Undo 'The impact of a supply shock can be far-reaching, bringing higher prices for consumers and reducing industrial competitiveness.' Birol pointed to the energy crisis in Europe following Russia's gas supply cuts and the global chip shortage during the pandemic as recent examples of the devastating effects of supply chain disruptions. 'The golden rule of energy security is diversification,' Birol told The Associated Press. 'And it goes beyond energy security — it is also economic security.' While markets play an important role in driving investment and innovation, Birol emphasized that government intervention through strategic policies and financing will be necessary to ensure resilience and meet rising global demand. The IEA's findings arrive amid rising global tensions around trade and resource control. China's tightened export restrictions on several strategic minerals have escalated concerns among Western nations about supply vulnerability, especially as clean energy goals ramp up. Former US President Donald Trump, now back in office, has prioritized reducing America's dependence on foreign mineral supplies. His administration recently finalized a controversial deal with Ukraine to access its vast mineral reserves and is actively exploring deep-sea mining, despite environmental opposition. Trump has also issued executive orders to fast-track domestic copper mining, reviewed a minerals agreement with the Democratic Republic of Congo, and attempted to secure mineral supplies from Greenland. These actions are part of his broader agenda to reinforce national security and economic resilience by diversifying supply chains and boosting domestic production. The IEA noted that global critical mineral markets are currently well-supplied, and prices have generally declined. However, it issued a stark warning that planned global copper production is falling behind projected demand, forecasting a 30 per cent supply shortfall by 2030. Copper is vital for electrical grids, renewable energy systems, and infrastructure electrification. The agency stressed the importance of accelerating investment in new mining projects, refining capabilities, and recycling technologies, while also establishing robust trade partnerships and reducing overreliance on any single nation. As the global economy shifts toward clean energy, the need for secure, transparent, and sustainable mineral supply chains will only intensify, the IEA concluded. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
21-05-2025
- Business
- Yahoo
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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Examiner
21-05-2025
- Business
- Irish Examiner
Critical minerals for clean energy ‘concentrated in fewer countries'
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 cut-offs that could disrupt economies and hit consumers with higher prices, a report has said. The Paris-based International Energy Agency (IEA) 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.' 🗣️ 'In a world of high geopolitical tensions, critical minerals have emerged as frontline issue in safeguarding global energy and economic security.' More from IEA's @fbirol on our Global Critical Minerals Outlook 2025 👉 — International Energy Agency (@IEA) May 21, 2025 Mr 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 car production. 'The golden rule of energy security is diversification,' Mr Birol said. 'And it goes beyond energy security, it is also economic security.' Market forces are important in developing new sources but will not be enough. 'There is a need for well-designed government policies' in the form of financing and other measures, he said. China is a massive global source of critical minerals required for a wide range of goods that includes computer chips, robots, electric cars, batteries, drones, and military equipment. It also dominates the refining and processing of many of these critical minerals, including lithium, cobalt, graphite and more. This morning, we released Global Critical Minerals Outlook 2025 ➡️ In just 1️⃣ hour, join our Executive Director @fbirol, Chief Energy Economist Tim Gould & lead author @tae100 for the LIVE report launch Tune in from 11:00 CEST ➡️ — International Energy Agency (@IEA) May 21, 2025 Beijing has placed export limits on many of these key products and tightened controls on others as American President Donald Trump's trade negotiations escalate, stifling US industry and the nation's ability to find quick alternatives. Without access to China's significant reserves, US manufacturers have a harder time competing amid mounting global supply tensions. Mr Trump has made reducing US 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 finalised a rocky deal with Ukraine granting American access to the nation's vast mineral resources earlier this month. Mr 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 US. 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.
