The surge in artificial intelligence is driving unprecedented demand for a specific ultra-rare element, establishing it as a leading raw material performer this year. This surge is attributed to the element's critical role in AI technologies. High-purity alumina, an ultra-refined form of aluminium oxide exceeding 99.99% purity, is experiencing a surge in demand due to its crucial role in semiconductor manufacturing. The material is used to build tiny wafers and insulating layers surrounding the chips.
This AI-driven demand is part of a broader trend where the expansion of AI infrastructure requires significant resource allocation. The rise of AI is expected to trigger substantial expansion in resources, impacting everything from energy and server hardware to robotics and edge devices. This includes materials like semiconductor-grade silicon and gallium, vital for AI chips and components, alongside rare earth elements essential for motors and cooling systems in AI robotics.
Furthermore, the shift towards embodied intelligence and robotics amplifies the need for rare earth metals, particularly neodymium-iron-boron magnets, which are essential in the motors powering humanoid robots. As industries increasingly adopt AI and robotics, the demand for these foundational materials is set to accelerate, potentially reshaping global supply chains and creating opportunities for resource suppliers.
