International Energy Agency chief stresses diversification for energy security

ISTANBUL

International Energy Agency (IEA) Executive Director Fatih Birol on Wednesday underscored the importance of diversifying supply chains to bolster global energy security.

“The number one golden rule of energy security is diversification … but when it comes to critical minerals, we see the opposite,” Birol said during an address at the World Climate Industry Expo in Busan, South Korea, according to the Yonhap News Agency.

Birol underscored the need to diversify critical mineral supply chains to bolster energy security.

"Energy security is, today, national security in many countries," he noted.

"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)," he said.

The IAE chief noted that dependence on a single country poses serious risks, as political tensions or natural disasters could disrupt the entire supply chain of critical minerals, which are vital for strategic sectors, including artificial intelligence (AI), semiconductor and defense, and more.

Birol also emphasized the global need to invest in more electricity power grids and storage systems, due to the increasing demand fueled by the growth of AI and advanced industries.

"We are entering the 'age of electricity,' which will re-shape the energy landscape in the coming decades," he said.

Electricity use has already doubled at twice the rate of overall energy demand over the past decade and is projected to grow six times faster by 2035, Birol added.