AI Is Fueling a New American Mining Boom

The AI Boom is Already Here, and It’s About to get Bigger

Artificial intelligence is reshaping every corner of our world at an unprecedented pace. AI’s capacity to analyze data, recognize patterns and make rapid decisions is driving innovation globally, from advancing personalized medicine to enabling autonomous vehicles. Algorithms are also becoming more sophisticated and computational demands are soaring, leading to an explosion in demand for advanced technology, and the minerals and materials used to create these technologies.

Industry analysts predict the global AI market will reach several trillions of dollars in value within a few years, as businesses, governments and researchers continue to heavily invest in next-generation systems. Growing our domestic mineral production capabilities will play an important role in how we position ourselves to lead these innovations.

Minerals are Critical to Artificial Intelligence & Advanced Technologies

Behind every AI chatbot, automated assembly line and data center is a complex hardware system that depends on a variety of minerals. For example:

• Cobalt is used in the development of semiconductors and chips to enhance their performance and reliability. The U.S. has 70 thousand metric tons of cobalt in domestic reserves.
• Copper is one of the backbones of data centers; pivotal in the creation of various electrical applications like power cables, busbars, electrical conductors, cooling sinks and power distribution systems. States such as Arizona, Nevada, Minnesota and Utah hold a combined estimate of 47 million metric tons of copper reserves.
• Gallium is one of the best semiconductors in the world. Seventy-nine percent of the gallium consumed in the U.S. goes into semiconductors needed for AI, robotics, smartphones, satellite communications and military radar.
• Germanium is used most notably used in fiber-optic cables to minimize signal loss. Germanium is also a great conductor of electricity, making it an important component of modern electronics.
• Lithium is most well-known for its uses in batteries. As of late, lithium batteries have become a crucial component in powering data centers across the country. Companies like Google are turning to lithium as a reliable way to power their data centers. The United States holds 1.8 million metric tons in U.S. lithium reserves.

Increasing demand for these minerals has highlighted some gaps in the U.S. supply chain, as we remain deeply reliant on imports to satisfy this growing demand. Overseas producers, particularly China and Russia, continue to dominate the global market.

We’re Losing the Minerals Race to China

China alone controls nearly two-thirds of the world’s production and refining capacity for lithium, cobalt, nickel and copper, while also processing over 80 percent of battery minerals crucial to building AI technologies, electronics and our own defense systems. These types of competitive advantages allow China to impose significant restrictions on U.S. consumption of these minerals with little notice, as demonstrated by recent Chinese mineral export bans.

“Thanks to data centers, semiconductors, batteries and electric vehicles, America’s mineral and electricity demand is soaring. Meeting that demand — and doing so responsibly — requires more American production. It also requires more American mining, and the people to make it happen.”

– NMA President and CEO Rich Nolan

The United States must expand its domestic minerals production and refinement capabilities to both meet our growing demand and limit the ability of China to cripple our supply chains.

The Trump administration has taken swift action to lower barriers for mine development, and the mining industry has responded by increasing operations and investing heavily in workforce development. Recent graduates and individuals seeking career changes should look to mining careers, which offer well-compensated and engaging opportunities in fields such as geology, engineering, transportation and operations. These roles are essential in addressing America’s reliance on mineral imports.

Securing America’s Technological Future with U.S. Minerals

AI continues to reshape the way we look at industries and has emphasized the increasing importance of the minerals that power its hardware. The United States has an opportunity to reclaim leadership in both energy and technology by forging a resilient domestic supply chain, embracing innovation and training the next generation of mineral experts. Coordinated investments and forward-thinking policies will bring American dominance in the minerals sector well within reach.