The growing adoption of artificial intelligence is driving increased demand for highly specialized materials, continuing a trend seen with transformative technologies like cars and smartphones. As these technologies become central to modern life, they create new dependencies on critical minerals and advanced components necessary for their production.
Historically, the evolution of cars and smartphones from simple devices to complex, digitally rich machines drove demand for materials containing rare elements essential for lightweight vehicle bodies, high-performance batteries, touchscreens, sensors, and other advanced hardware. The same pattern is emerging with AI technologies, which rely on specialized components for peak performance.
AI adds further pressure on supply chains because advanced chips, memory, and hardware require high-quality materials, often sourced from a limited number of countries. The rapid growth of generative AI and connected devices amplifies consumption, exposing vulnerabilities in production and highlighting the strategic importance of mining, processing, and domestic capacity.
The concentration of critical materials in select regions carries geopolitical implications, giving resource-rich countries increased leverage in global technology markets. This dynamic encourages diversification of sources, investment in domestic production, and exploration of alternative materials, while also raising concerns about environmental sustainability and long-term resource availability.
