IEA Warns of Critical Mineral Concentration, Urges India to Promote Green Mobility

PARIS, June 3, 2025 — The International Energy Agency (IEA) on Monday issued a cautionary note on the growing concentration of critical mineral mining and processing in a limited number of countries, highlighting the potential risks this poses to global supply chains and market stability. The agency also urged India to strengthen its green mobility initiatives to reduce its dependence on volatile oil markets.

According to the IEA’s latest assessment, the global energy transition—driven by increased adoption of electric vehicles, renewable energy technologies, and battery storage systems—has led to an unprecedented demand for critical minerals such as lithium, cobalt, nickel, graphite, and rare earth elements. These minerals are essential for the manufacturing of electric vehicle batteries, wind turbines, and solar panels.

However, the IEA warned that the mining and processing of these resources are currently dominated by a handful of countries, raising concerns over supply chain security, price manipulation, and geopolitical risks.

“The world is becoming increasingly dependent on a small number of producers for the minerals vital to clean energy technologies,” the agency stated. “This concentration creates a strategic vulnerability for many economies, including India, that are heavily reliant on energy imports and supply stability.”

India’s Vulnerability and the Case for Green Mobility

India, the world’s third-largest oil importer, faces significant exposure to global oil price fluctuations, which can have serious macroeconomic implications. In this context, the IEA encouraged Indian policymakers to accelerate the transition to electric vehicles (EVs), bolster public transport electrification, and incentivize domestic production of green technologies.

“Incentivising green mobility is not just an environmental imperative but a strategic economic one for India,” the report noted. “By investing in EV infrastructure and encouraging local production of critical technologies, India can insulate itself from oil market shocks and strengthen its energy independence.”

Policy Recommendations

The IEA’s recommendations for India include:

• Subsidies and tax benefits for electric vehicles and EV component manufacturing.

• Investment in public EV charging infrastructure to support large-scale adoption.

• Diversification of mineral supply sources through international partnerships and domestic exploration.

• Strengthening of recycling programs to reduce reliance on raw mineral imports.

• Development of domestic processing capabilities for critical minerals to move up the value chain.

Global Implications

The agency’s broader message underscored the need for international cooperation in securing critical mineral supply chains, enhancing transparency in mineral markets, and promoting responsible and sustainable mining practices. The IEA called on global stakeholders to establish strategic reserves, encourage open markets, and prioritize environmental safeguards.

As nations worldwide push forward with their net-zero ambitions, the interplay between energy security, mineral access, and technological resilience is becoming increasingly central to policy discussions. The IEA’s latest remarks serve as a timely reminder of the strategic importance of diversifying supply chains and investing in future-ready energy systems.