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The rapid expansion of artificial intelligence (AI) infrastructure is emerging as a powerful new driver of demand for battery raw materials. Hyperscale data centers require vast energy storage, copper and critical minerals to support escalating electricity needs.According to Benchmark Mineral Intelligence, AI-related power consumption is reshaping the battery supply chain. Lithium, graphite, phosphates and copper are all expected to see surging demand as tech giants build out global data center capacity.Benchmark’s Battery Energy Storage Lead Shan Tomouk pointed to the rapid growth in AI adoption during the April 30, “Behind the AI Boom: How Data Centre Demand is Reshaping BESS, Lithium, LFP and Copper Markets” webinar, underscoring that behind each AI query lies a growing energy burden that is scaling rapidly alongside adoption.Tomouk noted that a typical AI query consumes roughly 10 times the energy of a standard internet search, while increasingly sophisticated models require enormous amounts of computing power during training phases. GPT-4, for example, consumed an estimated 50 gigawatt-hours of electricity during training, up sharply from earlier generations. “A number that’s been thrown out for the average query on a ChatGPT question is around 0.3 watt hours of energy,” he said, noting that this is “about 10 times that of a Google (NASDAQ:GOOGL) search.”As a result, global data center electricity consumption is projected to rise significantly through 2030, led primarily by the United States, where most major AI developers are based. Benchmark expects hyperscale facilities, once defined as sites above 50 to 100 megawatts, to increasingly exceed gigawatt-scale power requirements.That surge in electricity demand is creating new opportunities for battery energy storage systems (BESS), particularly as utilities struggle to expand grid infrastructure quickly enough to meet demand.“Natural gas is really winning” as the preferred near-term power source for many data center operators, Tomouk said, citing projects where companies are building dedicated on-site gas generation to avoid delays tied to grid connections.At the same time, energy storage is increasingly being deployed to provide backup power, manage peak electricity demand and stabilize sudden load swings caused by AI training workloads. ​Lithium demand from AI data centers to quadruple by 2035 Adding to the overview, Adam Webb, Benchmark’s head of battery raw materials, said lithium iron phosphate (LFP) batteries are expected to dominate these applications due to their lower cost and suitability for stationary storage.That trend is projected to drive substantial increases in demand for key battery inputs over the next decade.Benchmark forecasts lithium demand tied specifically to AI data center-related energy storage will rise from roughly 15,000 metric tons in 2025 to nearly 70,000 metric tons by 2035. Demand for purified phosphoric acid is expected to climb from 26,000 metric tons to 127,000 metric tons over the same period, while synthetic graphite demand could increase more than fivefold.“We’re talking about really significant growth in the demand for raw materials from this sector over the coming 10 years,” Webb said.Still, analysts cautioned that data centers will remain a relatively small portion of total battery metals demand compared to electric vehicles, which continue to dominate consumption forecasts.By 2035, data center-related storage is expected to account for roughly 11 to 12 percent of total battery energy storage demand for these materials, but only a single-digit share of overall global demand.Supply chain concentration remains a concern, as China currently controls 70 percent of refined lithium production and over 90 percent of spherical graphite processing. While diversification is underway in North America and Africa, China is expected to remain the dominant refining hub for the foreseeable future.Benchmark estimates China currently controls roughly 70 percent of refined lithium production, more than 70 percent of purified phosphoric acid refining and over 90 percent of spherical graphite processing used in battery anodes.While diversification efforts are underway in regions such as North America and East Africa, Webb explained China is expected to remain the dominant refining hub for years to come.“Overall, there’s going to be reliance for these raw materials on China,” he said. ​The AI and copper correlation  Beyond batteries, copper demand is also rising as AI infrastructure expands. Benchmark copper demand analyst Anya Hurd said copper plays a central role across data center construction, grid infrastructure, cooling systems and semiconductor manufacturing.The firm expects copper demand tied to data center infrastructure to approach 500,000 metric tons this year and surpass 1 million metric tons by 2040.Hyperscale AI facilities are especially copper intensive due to their dense computing layouts and advanced liquid cooling systems. However, Hurd noted that while data centers are becoming an increasingly important growth market, they still represent a relatively small share of overall copper consumption globally.“Even though it’s of growing importance, it’s still a very small sub-component,” she said.Interestingly, copper prices have recently correlated more with AI stocks than traditional supply-demand fundamentals. This psychological link has amplified investor interest, even as physical consumption remains modest compared to total global supply.She attributed this partly to a high-profile error. “In an article released by NVIDIA (NASDAQ:NVDA), there was a misprint of 500,000 tons of copper being needed by a one-gigawatt data center,” she said. The figure was later revised to 500,000 pounds — a discrepancy of 2,200 times.“This has led to a lot of headlines, click baiting headlines … linking the two,” Hurd said, adding that the psychological link between AI growth and metal demand has amplified investor interest, even as physical consumption remains modest. Don’t forget to follow us @INN_Resource for real-time updates!Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Cotton futures slipped into the Wednesday close, as contracts were down 7 to 12 points in the front months. Crude oil futures were up $1.26 per barrel on the day at $64.47. The US dollar index was up $0.214 to $97.515. Tuesday’s online auction from The Seam showed sales of...

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