China and Indonesia dominate energy minerals market

However, weakening investments in critical minerals must be addressed.

China and Indonesia are leading the production of energy-related minerals, the International Energy Agency (IEA) said.

In its latest report, IEA said Indonesia dominated the production of nickel, and China dominated the production of 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 specifically noted major risks facing copper markets. Demand will increase, thanks to the move to expand electricity networks, which may lead to a 30% supply deficit by 2035, IEA said.