Forget Rare Earths; This 1 Critical Commodity is Powering a Structural AI Revolution

Core Insights - The focus on artificial intelligence (AI) chips, rare earths, and semiconductors may overshadow the significance of copper, which is becoming essential for the energy transition and clean technology growth [1][2]. Demand and Supply Dynamics - Copper demand is projected to increase by 24% by 2035, equating to over 7 million tons of new demand, necessitating an estimated $210 billion in new mining investments and 8 million tons of new capacity annually [3]. - As Western producers hesitate, countries like China, Russia, and Middle Eastern investors are funding copper mines in Africa, Asia, and Latin America, shifting control of future copper supply towards the East [4]. Copper's Role in Technology - Copper is critical for AI data centers, electric vehicles, and renewable power lines, leading some analysts to label it as "the real AI trade" [5]. - Rising copper prices historically indicate economic expansion, and current trends may suggest a structural supercycle driven by technology and electrification [5]. Market Trends - Copper prices have already risen approximately 19% in 2025, with analysts predicting potential increases towards $6 per pound or higher if supply cannot meet demand [6].