Critical minerals are required to power AI data center demand
By David Klanecky
Published on April 2, 2026.
The demand for electricity for data centers is expected to increase by nearly 16% by 2029, largely due to investments in data centers, manufacturing, and geopolitical and national strategic industries. The amount of global electricity generated for these centers is predicted to more than double to 1,000 TWh in 2030 and increase further to around 1,300 TWh by 2035. This is due to the increasing demand for batteries for large-format batteries due to technological advancements in lithium-based batteries. The U.S. is dependent on foreign sources for the critical minerals required to manufacture batteries, with nearly three-quarters of the United States' lithium-ion batteries coming from foreign entities. The article suggests that battery recycling and critical mineral refinement are crucial to stabilize AI data centers long-term. The infrastructure and capacity to recycle and process end-of-life batteries and refine these materials into battery-grade metals is required to achieve global independence and power the AI data centres being built at an unprecedented pace.
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