{{articledata.title}}

A new report says the world's supply of %CriticalMinerals are increasingly concentrated in only a few countries, notably China, leaving the global economy vulnerable to supply cutoffs.

The report from the Paris-based International Energy Agency (IEA) looks at the availability of minerals and metals that are widely used in technology and electronics, as well as renewable energy sources such as wind turbines.

The report 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 market share of 75%.

The concentration of critical minerals and rare earth elements in China leaves the global economy vulnerable to supply cutoffs that could disrupt industry and leave consumers with higher prices, says the report.

The findings are being made public amid growing trade tensions between the U.S. and China and a trend toward rising export restrictions and trade wars around the world.

"Critical mineral supply chains can be highly vulnerable to supply shocks, be they from extreme weather, a technical failure, or trade disruptions," writes the IEA in its report.

The agency highlights the recent example of the energy crisis that occurred in Europe after Russia cut off natural gas supplies to the continent following its invasion of Ukraine.

China is a massive global source of critical minerals that are required for a wide range of goods such as %Nvidia (NASDAQ: $NVDA ) computer chips, robotics, electric vehicles, batteries, and drones.

China also dominates the refining and processing of many critical minerals, including %Lithium, %Cobalt, %Graphite, and more.

China has placed export limits on many of these key products and tightened controls on others as U.S. President Donald Trump's trade negotiations escalate, stifling U.S. industry.

The Trump administration has made reducing America's dependence on foreign critical minerals a central focus for the U.S. government, citing national security and economic risks.