{"id":563849,"date":"2026-03-25T18:11:12","date_gmt":"2026-03-25T18:11:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/563849\/"},"modified":"2026-03-25T18:11:12","modified_gmt":"2026-03-25T18:11:12","slug":"iea-sounds-alarm-as-war-disrupts-energy-markets-boosting-australias-uranium-demand-carbon-credits","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/563849\/","title":{"rendered":"IEA Sounds Alarm as War Disrupts Energy Markets, Boosting Australia\u2019s Uranium Demand \u2022 Carbon Credits"},"content":{"rendered":"

The global energy system is under pressure again. This time, the shock is not just about oil and gas. It is also about minerals that power clean energy and nuclear technologies. Media reports<\/a> revealed that, according to International Energy Agency chief Fatih Birol, the current crisis could soon look small compared to what lies ahead in critical minerals.<\/p>\n

Speaking at a major industry event in Canberra, Birol warned that supply risks in minerals like uranium, copper, and battery metals could reshape global energy security. His message was clear: countries must diversify supply chains now or face deeper disruptions later.<\/p>\n

A New Energy Shock Unfolds\u00a0<\/p>\n

The world is already dealing with a massive energy disruption. The ongoing conflict involving the United States, Israel, and Iran has removed the equivalent of around 10 million barrels of oil per day from global markets, according to the IEA. This supply gap has pushed countries to rethink energy security. Oil prices remain volatile, and supply routes are under strain. However, Birol stressed that the bigger challenge may not be oil at all.<\/p>\n

Instead, the future risk lies in critical minerals. These materials are essential for clean energy systems, electric vehicles (EVs)<\/a>, and nuclear power. Without stable access to them, the global energy transition could slow down sharply.<\/p>\n

The problem is concentration. Today, one country dominates the refining and processing of many key minerals. China controls more than 80% of global refining capacity for several critical materials, according to IEA estimates. This creates a major bottleneck in supply chains.<\/p>\n

To sum up, without urgent diversification, countries could face even greater risks than today\u2019s energy shock.<\/p>\n

\nIEA Highlights Australia as a Reliable Supplier of Uranium and Critical Minerals\n<\/p>\n

Amid these concerns, Australia is emerging as a key player. The country holds vast reserves of critical minerals and energy resources. This includes uranium, lithium<\/a>, copper<\/a>, and natural gas.<\/p>\n

Australia has the world\u2019s largest uranium reserves. It accounts for roughly one-third of the known global resources, according to data from the Minerals Council of Australia. At the same time, it ranks among the top global uranium producers, alongside Kazakhstan, Canada, and Namibia.<\/p>\n

\"australiaSource: World Population Review<\/p>\n

This puts the nation in a strong position as nuclear energy<\/a> gains traction again worldwide. IEA highlighted that Australia is a reliable supplier that does not use energy exports as a geopolitical tool. This reliability is becoming more valuable as global tensions rise.<\/p>\n

At the same time, Australia is also rich in battery minerals. It is the world\u2019s largest producer of lithium and a major supplier of nickel and cobalt. These materials are critical for EV batteries and renewable energy storage.<\/p>\n

\nSMRs Open Lucrative Uranium Export Path for Australia\n<\/p>\n

One of the biggest shifts expected from this crisis is the revival of nuclear energy. Governments are now looking for stable, low-carbon energy sources that can reduce reliance on volatile fossil fuel markets.<\/p>\n

A key driver of this nuclear growth will be Small Modular Reactors<\/a> (SMRs). They are smaller, faster to build, and more flexible than traditional nuclear plants. Countries like the United States, the United Kingdom, France, and South Korea are leading their development.<\/p>\n

The IEA expects global nuclear capacity to grow strongly through 2035. In its latest outlook, nuclear generation could rise by nearly 50% by 2040 under net-zero scenarios. This shift will significantly increase demand for uranium. According to the World Nuclear Association, uranium demand<\/a> could double by 2040 if new reactors and SMRs scale up as expected.<\/p>\n

For Australia, this presents a major export opportunity. Even though the country does not use nuclear power domestically, it plays a crucial role in supplying fuel to the global market.<\/p>\n

One of the biggest shifts expected from this crisis is the revival of nuclear energy. Governments are now looking for stable, low-carbon energy sources that can reduce reliance on volatile fossil fuel markets.<\/p>\n

As per WNA<\/a>, in 2022, Australia produced 4087 tU of uranium, 8% of global production. Uranium comprises about 17% of the country\u2019s energy exports in thermal terms.<\/p>\n

Contracted Imports of Australian Uranium Oxide Concentrate \u2013 U3O8<\/p>\n

\"australiaSource: WNA
\nLNG Demand Set to Rise<\/p>\n

The current crisis is also boosting demand for liquefied natural gas (LNG). Damage to energy infrastructure in the Middle East has disrupted supply flows, forcing countries to seek alternatives.<\/p>\n

Australia is already one of the world\u2019s largest LNG exporters. Projects in Western Australia and Queensland supply key markets across Asia, including Japan, South Korea, and China.<\/p>\n

Birol said demand for Australian LNG is expected to grow further as countries look for stable suppliers. This could strengthen Australia\u2019s role in global gas markets in the short to medium term. Similarly, Wood Mac had also projected<\/a> earlier that the nation\u2019s exports would remain steady throughout this year,<\/p>\n

\"australiaSource: Wood Mackenzie<\/p>\n

According to the International Energy Agency, global LNG demand is projected to rise by around 3\u20134% annually through 2030, driven by Asia\u2019s energy needs and coal-to-gas switching.<\/p>\n

EV Growth Drives Copper and Battery Metals<\/p>\n

Beyond nuclear and gas, electrification is another major trend shaping demand. The global shift to EVs and renewable energy systems<\/a> is accelerating the need for metals like copper, lithium, and nickel.<\/p>\n

Copper is especially important. It is used in power grids, EV motors, and renewable energy systems. Birol emphasized that expanding electricity grids worldwide will require massive amounts of copper.<\/p>\n

The IEA estimates that clean energy technologies<\/a> could double global copper demand by 2040. Similarly, lithium demand could grow more than 40 times under aggressive climate scenarios.<\/p>\n

As said before, Australia is well-positioned here too. It leads global lithium production and has large untapped reserves of other key minerals. This gives it a strategic advantage as countries race to secure supply chains.<\/p>\n

Investment Trends Show Growing Interest<\/p>\n

Recent data shows rising investment in Australia\u2019s resource sector. Uranium exploration spending has picked up after years of decline. According to the Australian Bureau of Statistics, uranium exploration spending reached about $55 million in 2023. This marked the highest level in over a decade.<\/p>\n

This increase reflects renewed interest in nuclear energy and long-term expectations of higher uranium demand<\/a>. At the same time, mining companies are investing more in critical minerals projects. Governments are also stepping in with policies to support domestic processing and reduce reliance on foreign supply chains.<\/p>\n

\"australia<\/p>\n

\nMinerals, Not Oil, Are the New Battleground for Energy Security\n<\/p>\n

While the current energy crisis is serious, Birol\u2019s warning points to a deeper challenge. The world is entering a new phase where minerals, not just fuels, will define energy security<\/a>. If supply chains remain concentrated, disruptions could become more frequent and more severe. This could slow down clean energy deployment and push up costs.<\/p>\n

Diversification is key. Countries need to invest in new mining projects, expand refining capacity, and build resilient supply networks. And Australia is likely to play a central role in this shift. Its vast resources, stable political environment, and strong export infrastructure make it a critical partner for many nations.<\/p>\n

The global energy landscape is changing fast. Oil shocks are no longer the only concern. Critical minerals are becoming the new backbone of energy systems. As nuclear power returns, EV adoption rises<\/a>, and clean energy expands, demand for these materials will surge. This creates both risks and opportunities.<\/p>\n

The challenge now is to scale supply, diversify processing, and ensure these materials remain accessible. If not, today\u2019s energy crisis could soon be overshadowed by a much larger minerals crunch.<\/p>\n","protected":false},"excerpt":{"rendered":"The global energy system is under pressure again. This time, the shock is not just about oil and…\n","protected":false},"author":2,"featured_media":563850,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,277636,277637,277638,277639,206980,19232,257918,44],"class_list":{"0":"post-563849","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-australia","8":"tag-au","9":"tag-australia","10":"tag-australia-clean-energy","11":"tag-australia-critical-minerals","12":"tag-australia-uranium","13":"tag-clean-energy-demand","14":"tag-iran-war","15":"tag-lng","16":"tag-middle-east-war","17":"tag-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/563849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=563849"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/563849\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/563850"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=563849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=563849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=563849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}