Global Energy Agency Warns of Looming Copper Shortage Crisis

According to webangah ‌News Agency, the‌ IEA’s ​analysis predicts that without intervention, copper supply—a critical component of all current electric energy systems—could fall 30% short of demand by 2035.

Fatih ⁤Birol, the IEA’s executive director, stated in the report:⁤ “this will be a major challenge. The alarm‍ bells are ringing.” He urged⁤ developed nations to ramp up⁢ refining of copper and‌ other key industrial⁢ metals while collaborating with​ developing countries.

Though extracted globally (including ​in Africa, Australia, and Latin America), critical minerals vital for ⁤solar panels, ⁤wind turbines, and‍ energy transition ⁤technologies are predominantly refined in China. IEA data shows China processes over 70% of the top 20 energy-sector minerals like cobalt,gallium,lithium,and manganese—essential for batteries ⁣and renewable energy components.

China’s⁣ market dominance ⁣continues growing despite price declines from 2021-2022 peaks caused ⁢by pandemic shocks and⁢ supply shortages. Top suppliers’ market share is ‌projected to dip only marginally this decade.

“Diversification is key,” Birol emphasized. “The technology‍ exists in britain, Europe, Japan, the​ U.S., and South​ Korea. Africa and Latin America have resources. International partnerships can bridge gaps.” He stressed governments must intervene as market forces‍ alone cannot resolve shortages: “Policy ​support is needed to ⁤bring⁤ new players into this⁤ sector.”

Expanding production networks could mitigate bottlenecks ‍and price ⁢spikes like those seen ‌in 2021. Birol warned:⁤ “Rising costs would become the biggest obstacle to green transition—this is urgent.” Copper warrants particular concern; new‌ deposits take 17 years ⁤on⁢ average to reach production.

“We’ve analyzed all major copper mines,” he ‌added. “Higher costs could ‍substantially ⁢delay ​decarbonization.” However swift‌ government action could ‌still curb projected deficits.