Energy Transition and AI Boom Fuel Rising Demand for Critical Minerals

The global race for strategic minerals is accelerating as governments and corporations compete to secure supplies of critical resources essential for energy systems, advanced technology, and artificial intelligence infrastructure.

Minerals such as copper, lithium, nickel, and rare earth elements are increasingly viewed as strategic assets due to their role in electric vehicles, renewable energy systems, and high-performance computing infrastructure.

Copper, in particular, is emerging as one of the most critical resources in the global energy transition. According to recent industry analysis, copper demand is expected to increase significantly in the coming decades as electrification expands across multiple sectors.

AI infrastructure is also contributing to rising demand. Large-scale data centers require significant quantities of copper for power systems, cooling networks, and electrical connectivity.

Analysts warn that global copper supply may struggle to keep pace with demand. Forecasts suggest that existing mines and planned projects could meet only around 70% of global copper demand by 2035, raising concerns about potential supply shortages.

At the same time, declining ore grades and increasing regulatory challenges are making it more difficult to develop new mining projects, further tightening supply.

The growing importance of strategic minerals is transforming resource policy worldwide, with governments increasingly treating critical mineral supply chains as matters of economic and national security.

Sources

• International Energy Agency

• S&P Global

• Industry commodity analysis