A crucial issue affecting both energy and economic stability is raising concerns. To avoid potentially harmful disruptions across various sectors, from power grids to aviation, governments must take decisive action.
About half a century ago, the 1973 oil crisis led to a dramatic surge in gasoline prices in the U.S., Europe, and elsewhere, which strained economies and created significant fuel shortages. In response, governments collaborated, under the guidance of U.S. Secretary of State Henry Kissinger, to establish the (IEA). This involved creating a system for accumulating and sharing emergency oil reserves to prevent future supply-based coercion.
This significant cooperation has been valuable over the years, reducing the economic impact of oil supply disruptions caused by events like hurricanes or geopolitical conflicts. Energy supplies are still being used as leverage, as seen when Russia reduced natural gas deliveries to Europe following its invasion of Ukraine. Fortunately, Europe was able to quickly increase its imports of U.S. liquefied natural gas, which helped offset the reduction in Russian supply.
The same strategy should now be used for critical minerals.
In addition to the existing risks in the oil and natural gas markets, the world is facing new energy security challenges that require government attention. These include the minerals essential for a wide array of technologies within and beyond the energy sector. These minerals are vital for power grids, batteries, and other energy-related equipment, but are also necessary for AI chips, jet engines, and defense applications, making them crucial for both energy and economic security.
While these minerals aren’t directly used to power vehicles, generate electricity, or heat homes, their supply shortages can still severely affect key manufacturing industries, with extensive consequences for economies and jobs. The recent issues surrounding rare earth exports highlight these risks. When China tightened export controls in April, automakers in the U.S., Europe, and other regions faced immediate challenges in obtaining the rare earth magnets required for electric motors and other essential components, risking potential factory closures.
Diversification is the key principle of energy security, but the global situation for critical minerals is concerning.
The supply of critical minerals, ranging from key battery metals to advanced materials, is concentrated in a small number of countries. China is the leading refiner for 19 of the 20 most important strategic minerals tracked by the IEA—including gallium, graphite, and rare earths—holding an average market share of 70%. According to the IEA’s research, this concentration has increased in recent years.
Currently, more than half of these strategic minerals are subject to some form of export restriction or control, either on the minerals themselves or on the knowledge required to integrate them into finished products.
Governments worldwide are becoming aware of the risks associated with such high levels of concentration and are seeking solutions. Action is needed both immediately—to enhance preparedness against potential disruptions—and in the long term to diversify supply chains and reduce structural risks.
As with the oil market in the 1970s, no single government has all the answers. However, international cooperation can pave the way forward.
The IEA is well-positioned to lead this effort. Over the past five years, we have invested significantly in expanding our global data and analytical capabilities in critical minerals, mirroring our expertise in other areas of the energy sector.
With the support of our member countries and building on our decades of experience with oil security mechanisms, we have developed a new Critical Minerals Security Program to encourage coordinated responses to supply disruptions.
As with the oil markets in the 1970s, the challenges are substantial. Markets alone will not achieve greater diversity. We need new policies and international partnerships between resource-rich countries, refiners, capital providers, and consumers.
New instruments that provide price or volume certainty will be necessary to reduce investment barriers and encourage financing. For example, in July 2025, the U.S. Department of Defense launched a, which includes equity investment, price floor commitments, and future purchasing agreements to establish a fully domestic rare earths supply chain. Meanwhile, the European Union has identified 60 strategic projects, making them eligible for streamlined permitting and increased access to funding.
Ensuring that economies have a reliable supply of the critical minerals their industries require is a significant challenge. However, with the same determination and focus that governments demonstrated in creating the IEA after the 1973 oil crisis, we can create a more secure economic and energy future.
