Critical Metals Are Emerging as the Physical Backbone of AI and Defense

VanEck argues that rare earths and copper have become strategic assets at the center of AI infrastructure, defense modernization, grid expansion and supply-chain security, creating long-term investment implications beyond traditional commodity cycles.

• Supply-chain vulnerability is increasingly viewed as a structural issue, with China continuing to dominate much of the rare-earth value chain from mining to magnet production and recycling.
• Copper faces persistent supply constraints driven by declining ore grades, deeper mines, project delays and rising capital intensity, limiting the industry's ability to respond to growing demand.
• AI infrastructure, grid modernization and defense spending are expected to increase demand for critical metals, while greater capital discipline among mining companies may support stronger free cash flow and shareholder returns.

Read the full report for a detailed examination of critical-metal supply chains, copper market dynamics and the investment implications of AI-driven industrial demand.