Busan: The global community should work to diversify critical mineral supply chains to bolster energy security amid the growing importance of energy in various sectors, including manufacturing and defense, the chief of the International Energy Agency (IEA) said Wednesday, noting global dependence on China may be too heavy.
According to Yonhap News Agency, IEA Executive Director Fatih Birol emphasized during a press conference at the World Climate Industry Expo in Busan, located about 325 kilometers southeast of Seoul, that China's dominance in the refining and mining of critical minerals presents a significant challenge. "Today, China's share in the refining of all critical minerals is over 70 percent ... and China also has very strong presence in terms of mining (of the minerals)," Birol explained.
He underscored that reliance on a single country could pose risks due to political issues or natural disasters that might disrupt the entire supply chain. These critical minerals are essential for strategic sectors such as artificial intelligence (AI), semiconductor, car manufacturing, medical, and defense. "The number one golden rule of energy security is diversification ... but when it comes to critical minerals, we see the opposite," Birol stated.
Birol also highlighted the growing need for global efforts to address climate change, noting the increased frequency and intensity of extreme weather conditions. With the rising demand for electricity driven by the growth of AI and advanced industries, he advocated for greater investment in power grids and storage systems to maintain a competitive edge in the global AI race and energy transition.
"We are entering the 'age of electricity,' which will re-shape the energy landscape in the coming decades," Birol remarked, adding that electricity usage has grown at twice the pace of overall energy demand over the last decade. He predicted that from today to 2035, electricity demand would grow six times as fast.
Birol acknowledged that investment in grids and storage is lagging behind the rise in power demand and the deployment of renewables. He noted that South Korea is well-positioned to play a significant role in the clean energy market, expected to nearly triple to US$2 trillion by 2035 from the current value of $700 billion. He cited Seoul's leadership in global battery supply chains and its strong record in technological innovation.
The Korean government's recent "energy expressway" initiative aims to build high-voltage direct current (HVDC) infrastructure nationwide, alongside a plan to develop a next-generation power grid utilizing cutting-edge AI technology to reduce long-distance power transmission inefficiencies. Birol welcomed these efforts, stating, "the availability of reliable and low-emissions power supply and stronger and more flexible grid systems are increasingly becoming a major source of industrial competitiveness and a key requirement for leadership in the global AI race."