IndoNEWSian.com – However, weakening investments in critical minerals must be addressed.
According to the International Energy Agency (IEA), China and Indonesia are at the forefront of producing energy-related minerals.
According to their most recent report, the IEA indicated that Indonesia leads in nickel production, while China takes the lead in producing copper, lithium, cobalt, graphite, and rare earth elements.
Overall, the average market share of the top three producers rose to 86% in 2024 from around 82% in 2020. The average share of the top three suppliers is projected to decline only marginally over the next decade, effectively returning to the concentration levels seen in 2020, the agency said.
IEA noted that demand growth for key energy minerals has been strong in recent years. However, major supply increases – led by China, Indonesia and parts of Africa – have put downward pressure on prices, especially for battery metals.
“Since 2020, supply growth for battery metals has been twice the rate seen in the late 2010s,” it added.
However, it also warned that Investment momentum in critical minerals has weakened, with spending growing by just 5% in 2024, down from an increase of 14% in 2023. Exploration activity plateaued in 2024, and start-up funding showed signs of a slowdown.
The report particularly highlighted significant risks for copper markets. It stated that demand would rise due to efforts aimed at expanding electrical grids, potentially resulting in a 30% shortfall in supply by 2035, according to the IEA.
