IEA decided to launch security program for minerals critical

IEA decided to launch security program for minerals critical to energy sector

The International Energy Agency (IEA) is initiating a program aimed at ensuring the availability of minerals crucial to energy security, as demand surges amidst manufacturing being predominantly controlled by a handful of key producers, according to the agency's executive director, Fatih Birol. Birol highlighted that the production of electric vehicles, solar panels, and other energy-related equipment necessitates a consistent supply of minerals like lithium, cobalt, and copper. While the IEA continues its monitoring of oil and gas markets, Birol emphasized that the supply chain for energy technologies poses a significant emerging security challenge. China, as per a US Aerospace Industries Association report, serves as the primary producer for 30 out of 50 critical materials and dominates the global production and processing of rare earths.

Last year, China imposed export restrictions on gallium, germanium, and certain types of graphite to safeguard its strategic metals dominance. The IEA's initiative coincides with heightened efforts by nations to reduce emissions, necessitating consistent access to critical minerals like lithium, copper, nickel, cobalt, manganese, and graphite for batteries, as well as rare earth elements for wind turbines and electric vehicles. This heightened demand has raised concerns regarding price volatility and supply security, with the IEA underscoring the enduring importance of geopolitics even in an electrified, renewables-rich energy landscape. In July, the agency released its inaugural Critical Minerals Market Review and hosted the first-ever international summit on critical minerals and their role in facilitating clean energy transitions in September.