The world is shifting towards renewable energy, but a few countries are dominating the market for key minerals. China is the biggest producer, refining 19 out of 20 strategic minerals. Indonesia is second, with a growing production of nickel used in electric car batteries.
These countries’ control of mineral supplies could lead to problems for other nations. The International Energy Agency warns that relying on just a few countries for minerals could cause price increases and economic instability. Climate change, technical issues, or trade disruptions could also impact mineral supplies.
China’s dominance in mineral production is a concern. The country’s refining capabilities and strategic policies have made it a leader in renewable energy. However, its control of the market could lead to problems for other countries that need access to these minerals.
If China were to limit its exports, it could lead to a crisis for the rest of the world. The cost of minerals would rise, and industries that rely on them would struggle. This could lead to a return to fossil fuels or a shortage of parts for the automotive industry.
Mineral production concentrated in a few hands
The International Energy Agency notes that two main producers, China and Indonesia, are increasing their control of the mineral market. Their production of lithium, copper, cobalt, graphite, and rare minerals has risen from 82% to 86% in 2024. This trend is expected to continue in 2025.
China is the clear leader, with a strong focus on renewable energy and strategic policies to support its production. Indonesia is second, with a growing production of nickel. The concentration of mineral production in these countries could lead to problems for other nations that rely on them.
Risks of relying on a few countries
The International Energy Agency warns that relying on just a few countries for minerals could lead to economic instability. Climate change, technical issues, or trade disruptions could impact mineral supplies, causing problems for industries that rely on them.
In the past, countries have faced problems when they relied too heavily on a single supplier for natural resources. This has led to market instability, economic losses, and struggles to access the resources needed.
The current situation with China and Indonesia is a concern. Their dominance of the mineral market could lead to problems for other countries that need access to these resources. The world needs to be aware of these risks and work towards a more diversified supply of minerals.