The explosion of Artificial Intelligence is expected to trigger a 10-year critical mineral supercycle, according to a new report. The Oregon Group predicts the massive energy needs of new AI data centers will increase pressure on mineral supply chains already under strain to meet global net-zero targets.

The report examines key trends affecting the growth across the sector, including:

• nuclear energy and uranium
• renewable energy and battery metals, including cobalt, graphite, lithium, nickel, manganese, rare earths, fluorspar
• expanding electricity grids driving copper demand
• and tin, essential for soldering across the tech revolution

This growth in demand is driven by a potent combination of technology companies, consumer and business demand, and government support, all racing to maintain a global cutting edge.

Growth in demand is driven by a potent combination of tech, consumers and governments, racing to maintain a cutting edge

The large tech companies are betting hundreds of billions on new data centers — Amazon plans to spend US$150 billion over the next 15 years on data centers — as they are already facing challenges to their ambitions of AI growth.

Years of underinvestment in new mines, concentrated supply and processing in high-risk regions, as well as rising demand for minerals to meet net-zero targets, means supply will struggle to keep pace with the potential AI demand that is only now starting to be appreciated.

The report highlights NVIDIA’s soaring stock price, a proxy for investment in the AI revolution, as a signpost that the supercycle is already underway.

McKinsey forecasts generative AI has the potential to generate value equivalent to $2.6 trillion to $4.4 trillion in global corporate profits annually.

The combined incentives of significant corporate profits, technological advancements, environmental restrictions and consumer pressure, will overcome many of the obstacles to investment across the sector, even those hindering net-zero targets.

To learn more about the new critical mineral supercycle and key trends, you can access The Oregon Group’s new report, entitled “Artificial Intelligence and the next Critical Mineral Supercycle” by visiting our dedicated website section for the market report.

About The Oregon Group

The Oregon Group is an investment research company focused on a variety of key investment trends related to critical commodities, technology and the energy transition.

For more information, please visit theoregongroup.com