Manufacturers may try to skimp on critical minerals, but scale and complexity will eventually drive demand higher, said Mike Walden, senior director at TECHCET.
Last week Walden recorded an episode of Green Rush with Matt Watson, founder of Precious Metals Commodity Management LLC.
Electrification and AI are going to need a lot of critical minerals and precious metals, noted the two guests. AI is going to require massive data centers, which will be very power hungry. Solar power has also been making big strides.
"Solar photo-voltaic on its own is a massive market," noted Watson.
Walden said that there is a lot of AI hype. The build out for the power-hungry data centers will take time. Thrifting and substitution will dent demand, but more metals will still be needed.
"Designs are becoming extremely sophisticated," said Walden, discussing the new generations of semiconductors. "AI is a self-feeding monster. AI could counter some of the current use of metals. But, generally speaking, the complexity is just driving material consumption further and further."
