As artificial intelligence drives unprecedented demand for critical minerals, investors are eyeing opportunities in the metals and mining sector. From copper wiring in data centers to lithium for energy storage and rare earth elements for semiconductors, these “digital-age commodities” have become geopolitical assets. Here, we analyze three mining stocks—Albemarle (ALB), Plug Power (PLUG), and USA Rare Earth (USAR)—that stand to benefit from the AI-driven supercycle.
Albemarle, one of the world’s largest lithium producers, operates low-cost brine assets in Chile, the U.S., and Australia. Despite depressed lithium prices, analysts expect the company to maintain 20% EBITDA margins and generate positive free cash flow, potentially restoring dividends to lithium’s pre-crash (2022) levels.
AI data centers require massive backup power, driving demand for lithium-ion batteries. Alphabet (GOOGL) has deployed 100 million lithium cells across its data centers, with other tech giants following suit. Additionally, U.S. tech firms are avoiding Chinese-made batteries due to geopolitical tensions, benefiting Albemarle as it expands American production.
With shares trading at 0.8x book value—a multi-year low—and its Clayton Valley project set to boost margins post-2026, ALB offers long-term upside for patient investors.
Once a high-flying green energy stock, Plug Power crashed 91% before attracting renewed interest—thanks to AI. Data centers need 24/7 power reliability, and hydrogen fuel cells offer advantages over lithium batteries in endurance.
Microsoft (MSFT) is testing a 250kW hydrogen system at its Dublin data center (enough for ~200 homes), while IBM and Alphabet explore similar solutions. Plug Power, a leader in hydrogen tech, stands to benefit.
A bullish signal? CFO Paul Middleton bought 1 million shares at ~$1, increasing his stake to 2.6 million. Though PLUG remains speculative, its vision as an integrated hydrogen supplier for AI infrastructure makes it worth watching.
USAR could be a major winner in the U.S.-China rare earth decoupling. Its Round Top project in Texas recently produced 99.1% pure dysprosium oxide—a critical semiconductor and EV magnet material. The site also holds gallium, hafnium, and zirconium, all essential for tech manufacturing.
With the U.S. importing two-thirds of its rare earths from China, regulators are fast-tracking domestic projects. Analysts forecast $166M revenue by 2027 (up from zero) and breakeven by 2028.
But risks abound: Insiders can sell 50% of holdings within a year, pressuring shares until mid-2026. Past failures (like Texas Mineral Resources’ Round Top flop) also highlight exploration risks. Wait for a deeper pullback before buying.
Albemarle is a low-risk lithium play with AI-driven battery demand, while Plug Power stands tall as a speculative hydrogen bet. USA Rare Earth is an obvious rare earth opportunity—best for watchlists.
As AI fuels a new commodities supercycle, these stocks could deliver outsized returns, if picking your entry points wisely.
