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Critical mineral demand from AI and energy transition

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2026-10-05 16:07 UTC → 2026-10-06 09:26 UTC · added ~~removed~~

The expansion of artificial intelligence and the global energy transition are driving increased demand for critical minerals. Initial projections from Wood Mackenzie highlighted that AI infrastructure development, including data centers, would require substantial energy and raw materials, presenting a major opportunity for mineral-rich regions like Latin America. This demand has specifically surged for copper, which is essential for electric vehicles, renewable energy, and power grids. The resulting tight supply environment is complicated by the long lead times required to develop new primary mines. In response to these constraints, the industry is increasingly turning toward recycling technologies to recover metals such as lithium, nickel, cobalt, and copper from spent batteries and manufacturing scrap. Recent market activity shows global copper prices rising on the London Metal Exchange (LME), accompanied by declining inventories in both London and Shanghai. Major mining companies, including Freeport-McMoRan and BHP Group, are benefiting from this tight supply and rising revenues. Analysts suggest that the need for expanded computing power and AI infrastructure will continue to drive demand, with S&P Global estimating that global demand for copper could increase by 50 percent by 2040. To mitigate supply constraints, there is an intensifying focus on recycling materials from decommissioned energy-transition infrastructure, such as old batteries and solar panels. Companies like Redwood Materials are already recovering high percentages of lithium, nickel, cobalt, and copper from spent batteries to establish a more sustainable supply chain.

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