NVDA, AAPL, DELL: World’s Supply of ‘Critical Minerals’ Is Increasingly Concentrated in China

A new report says the world’s supply of critical minerals is increasingly concentrated in only a few countries, notably China, leaving the global economy vulnerable to supply cutoffs.

The report from the Paris-based International Energy Agency (IEA) looks at the availability of minerals and metals that are widely used in technology and electronics, as well as renewable energy sources such as wind turbines.

The findings have potential implications for leading U.S. technology companies that rely on metals and critical minerals for their products — from Nvidia (NVDA) microchips and Apple (AAPL) iPhones to Dell Technologies’ (DELL) laptop computers.

China Dominance

The report found that for copper, lithium, cobalt, graphite, and rare earth elements, the average market share of the three top producing countries rose to 86% in 2024 from 82% in 2020. China is the leading refiner for 19 out of 20 strategic minerals studied in the report and has an average market share of 75%.

The concentration of critical minerals and rare earth elements in China leaves the global economy vulnerable to supply cutoffs that could disrupt industry and leave consumers with higher prices, says the report. The findings are being made public amid growing trade tensions between the U.S. and China, and a trend toward export restrictions and trade wars around the world.

Trade Tensions

China is a massive global source of critical minerals that are required for a wide range of goods such as computer chips, robotics, electric vehicles, batteries, smartphones, and drones. China also dominates the refining and processing of many critical minerals, including lithium, cobalt, graphite, and more.

China has placed export limits on many of these products and tightened controls on others as U.S. President Donald Trump’s trade tactics escalate, stifling U.S. industry. The Trump administration has made reducing America’s dependence on foreign critical minerals a central focus of the U.S. government, citing national security and economic risks.

NVDA stock has risen 2% this year.

Is NVDA Stock a Buy?

The stock of Nvidia has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 34 Buy, five Hold, and one Sell recommendations assigned in the last three months. The average NVDA price target of $164.51 implies 20.58% upside from current levels.

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