This includes more than 90 per cent of the world's rare earths, three-quarters of cobalt and two-thirds of nickel, according to Transparency International.
More than half of the reserves of 11 key critical minerals for renewable energy technology are found in corruption-prone jurisdictions which poses a threat to the green energy transition, the organisation said.
Corruption in the mining sector lined the pockets of political elites and robbed nations from investing in schools, health and infrastructure, Transparency International Australia CEO Clancy Moore said.
He called for the federal government to implement the extractive industries transparency initiative, which promotes an open and accountable management of natural resources.
By signing up, nations commit to disclose information along the supply chain, including how contracts are awarded, how money flows through to governments and where the public benefit is.
The organisation's accountable mining program manager Ana Carballo said local communities were being put at risk.
"A just transition requires that governments and mining companies tackle corruption head-on, ensuring that the shift to renewable energy does not come at the expense of environmental sustainability or human rights," Dr Carballo said.
Australia generally has strong regulations, including anti-bribery legislation, modern slavery reporting and tax transparency, the organisation said.
But it identified gaps in the mining sector such as inadequate due diligence investigations into the integrity of mining applications and approvals.
"Without adequate due diligence, even basic research into the track record of mining applicants, there is a risk that permits will be awarded to companies with a history of non-compliance or corruption, including in their operations in other countries," its report said.
Myanmar, with the second largest reserve of tin, and Guinea and Congo, with the largest deposits of Bauxite and Cobalt respectively were all found to be highly corrupt, according to Transparency International's corruption perception index.
Latin American countries with large mineral reserves including Cuba, Peru, Chile, Brazil and Argentina also had poor corruption index scores.
The global scramble for these lucrative minerals has intensified competition, especially as the United States and partners like Australia work to counter China's dominance of the sector.
This added pressure to resource-rich but "governance-challenged" nations, Transparency International said.
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