Frankfurt, Germany - A report said that the global source of key minerals is increasingly concentrated in several countries, most notably China, which makes the global economy vulnerable to supply cutoffs that could temporarily destroy economies and hit consumers at higher prices.

The Paris-based International Energy Agency report examines the availability of minerals and metals, which may be small in quantity but have a great impact on moving the economy from fossil fuels to electricity and renewable energy.

It found that for copper, lithium, cobalt, graphite and rare earth elements, the average market share of the three top producers rose from 82% in 2020 to 86% in 2024.

China is 19 of the 20 strategic minerals studied in the report, with an average share of about 75%. Indonesia has shown strong nickel growth, a key component in the manufacture of steel and batteries for electric vehicles.

The current trend in export restrictions and trade disputes has increased concerns, the IEA said.

“The critical mineral supply chain can be very vulnerable to supply shocks, whether due to extreme weather, technology failure or trade disruptions,” said Fatih Birol, executive director of IEA. “The impact of supply shocks can be far-reaching, bringing higher prices to consumers and reducing industrial competitiveness.”

Birol cites the European energy crisis after Russia cut off natural gas supplies that invaded Ukraine. Another cautionary tale is the global shortage of silicon-based computer chips during and after the pandemic, which has disrupted automotive production.

"The golden rule of energy security is diversity," Bilorell told the Associated Press in an interview. "It goes beyond energy security, and it is also economic security."

Market power is important for developing new sources, but not enough. "A careful government policy is needed" in the form of financing and other measures," he said.

China is a globally important source of important minerals needed for a variety of commodities including computer chips, robots, electric vehicles, batteries, drones and military equipment. It also dominates the refining and processing of many key minerals, including lithium, cobalt, graphite, etc.

As President Donald Trump's trade negotiations escalate, killing trade negotiations in U.S. industries and the country's ability to find a quick alternative, China has imposed export restrictions on many key products on export restrictions on other key products. Without gaining large reserves in China, U.S. manufacturers will be more difficult to compete in amid increasing global supply tensions.

Trump has made the U.S. reliance on foreign key minerals a core principle for his 100-day term in office, part of the national security and economic resilience agenda.

This goes beyond China; the Trump administration eventually struck a tough deal with Ukraine, giving the United States the opportunity to acquire the vast U.S. mineral resources earlier this month.

Trump also hopes to speed up deep-sea mining in international waters, annoyed environmental groups. He called for an executive order in February along with other calls for the federal government to quickly track new mine permits to rise in the domestic copper industry; the mineral proposal in Congo, a country rich in mineral reserves, has been reviewed. And try to provide more minerals to the United States

The IEA report said that the global market is currently well supplied and prices are generally falling. However, it warns that planned copper production is crucial for wires and grids, it will not keep up with demand and predict shortages by 2030 to 2030.

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St. John contributed from Detroit, Michigan.