Key Takeaways
- Rio Tinto will supply copper to Amazon for use in its artificial intelligence data centers
- The AI industry is driving up demand for copper and other critical minerals, with global copper demand expected to increase by 50% by 2040
- Rio Tinto’s Nuton leaching program uses bacteria to extract copper from rock, and will be used to supply copper to Amazon Web Services
- Copper prices have increased by 40% in the past year due to surging demand and tight global supplies
- The agreement between Rio Tinto and Amazon highlights the importance of securing access to critical minerals for the growth of the AI industry
Introduction to the Partnership
The recent partnership between Rio Tinto and Amazon is a significant development in the AI industry, as it underscores the growing demand for critical minerals such as copper. As reported by Reuters, "Rio Tinto (RIO.L) said on Thursday it would supply copper that it leaches from an Arizona mine to Amazon.com (AMZN.O) for use in the tech giant’s artificial intelligence data centers." This move is expected to boost the growth of the AI industry, which is driving up demand for copper and other critical minerals. According to analysts, "AI sector growth is expected to boost global copper demand 50% by 2040," which highlights the importance of securing access to these minerals.
The Importance of Copper in AI Data Centers
Copper is a critical component in the construction of AI data centers, as it is used to build wiring, cables, circuit boards, and other electronic parts. As Amazon Web Services continues to expand its operations, the demand for copper is expected to increase significantly. The use of copper in AI data centers is due to its high electrical conductivity, which makes it an essential material for power grids, electric vehicles, and infrastructure critical to the energy transition. As Rio Tinto notes, "The Nuton technology uses bacteria that naturally produces heat when applied to certain types of rock, helping to extract copper." This innovative technology is expected to play a key role in meeting the growing demand for copper.
The Nuton Leaching Program
The Nuton leaching program is a key component of the partnership between Rio Tinto and Amazon. The program uses bacteria to extract copper from rock, and has been studied by Rio Tinto for over 30 years. The company has named the leaching program "Nuton" after the 17th-century British scientist Isaac Newton, who first developed the theory of gravity. As reported by Reuters, "Rio has been studying leaching for more than 30 years." The use of this technology is expected to increase the efficiency and sustainability of copper extraction, and will play a key role in meeting the growing demand for copper.
The Impact on Copper Prices
The growing demand for copper is having a significant impact on copper prices, which have climbed above $13,000 a metric ton on the London Metal Exchange. This represents a 40% increase in the past year, and is driven by the surging demand from AI-powered data centers. As reported by Reuters, "Copper prices have climbed above $13,000 a metric ton on the London Metal Exchange — a 40% increase in the past year — as expectations of surging demand from AI-powered data centres collide with tight global supplies." The increase in copper prices highlights the importance of securing access to critical minerals, and the need for companies to develop innovative technologies to extract these minerals.
Conclusion and Future Outlook
The partnership between Rio Tinto and Amazon is a significant development in the AI industry, and highlights the growing demand for critical minerals such as copper. As the demand for copper continues to increase, companies will need to develop innovative technologies to extract these minerals and meet the growing demand. The use of the Nuton leaching program is expected to play a key role in meeting this demand, and will help to drive the growth of the AI industry. As noted by Reuters, "The move underscores the rampant push by the AI industry for access to supplies of copper and other critical minerals that are used to build wiring, cables, circuit boards and other electronic parts." The future outlook for the AI industry is positive, and the partnership between Rio Tinto and Amazon is expected to play a key role in driving this growth.
https://www.reuters.com/business/rio-tinto-supply-copper-amazon-ai-data-centers-2026-01-15/
