The digital economy - critical minerals and equity markets - Implications for equity markets of rising demand for critical minerals

Oct 5, 2026

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Rising demand for critical minerals is being driven by rapid AI adoption, expanding data centres and GPUs, next-generation semiconductor rollout, 5G networks, and advanced digital infrastructure. Clean energy technologies, electric vehicles, and broader digitisation and automation further intensify needs for minerals at the centre of global economic activity. Meanwhile, countries and firms are reworking supply chains via diversified sourcing and domestic processing investments, shifting trade policies and accelerating exploration. Equity market performance begins to reflect this change, creating valuation opportunities and new risks for investors.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages16

Reading Time40 min

AccessFree to download

Overview

The digital economy – introducing the elements

New alliances to redefine market dynamics

Rare Earth Elements (REEs) producers

Beyond REEs, conventional and critical metals

Other critical elements

Industry spotlight: critical minerals in semiconductors and chip manufacturing

Impact of rising demand for critical minerals on equity market and valuation

Australia

Brazil

China

India

Impact on valuations

Conclusion: rising demand, strategic shifts and market implications

Global Investment Research | Multi-Asset The digital economy − critical minerals and equity markets Implications for equity markets of rising demand for critical minerals July 2025 AUTHORS Sandrine Soubeyran Director, Global Investment Research [Sandrine.soubeyran@lseg.com](Sandrine.soubeyran@lseg.com) Alex Nae, MSc Quantitative Research Analyst, Global Investment Research [alex.nae@lseg.com](alex.nae@lseg.com) Overview – Higher demand for critical minerals: This trend is driven by the rapid adoption of artificial intelligence, the expansion of data centres and graphic processing units, the rollout of next-generation semiconductors, 5G networks and advanced digital infrastructure. Clean energy technologies, electric vehicles, and the broader economy’s shift toward digitisation and automation further increase this need, embedding critical minerals at the core of the modern global economy. – Strategic shifts in global supply chains are reshaping the market and creating new opportunities. Countries and companies are seeking to diversify sources of critical minerals, reducing the reliance on dominant suppliers, and investing in domestic processing capabilities. This trend is prompting shifts in trade policies and new exploration initiatives. – Significant market implications: Equity performance is starting to reflect this evolving landscape. Established producers, like China, may see renewed investment as their reserves grow in strategic importance, while emerging players could introduce new competitive dynamics. – Valuation opportunities: Valuation metrics across Australia, Brazil and India remain compelling, suggesting that these economies are well positioned to capitalise on the convergence of digital growth and their natural resource advantage. – Assessing risks: Investors will need to assess geopolitical risks, supply chain vulnerabilities, the environmental impact, and the potential for technological advancements to redefine demand projections. | Contents | | | --- | --- | | The digital economy – introducing the elements ..................................................................4
New alliances to redefine market dynamics ......................................................................4
Rare Earth Elements (REEs) producers ...............................................................................5
Beyond REEs, conventional and critical metals ...................................................................6
Other critical elements .......................................................................................................7
Industry spotlight: critical minerals in semiconductors and chip manufacturing...................8
Impact of rising demand for critical minerals on equity market and valuation.................... 10
Australia ........................................................................................................................... 10
Brazil ................................................................................................................................ 11
China ................................................................................................................................ 12
India .................................................................................................................................. 13
Impact on valuations ........................................................................................................ 13
Conclusion: rising demand, strategic shifts and market implications ................................. 15 | | The digital economy – introducing the elements The expanding digital economy is fuelling a surge in demand for critical minerals. These are unique for their magnetic qualities and are indispensable components of AI technology, semiconductor manufacturing and energy storage solutions. As AI applications become more integrated across

FAQs

What is driving the surge in demand for critical minerals?

Demand is increasing due to AI adoption, the growth of data centres and GPUs, next-generation semiconductors, 5G networks, and digital infrastructure. Clean energy technologies and electrification trends also strengthen the need.

How are global supply chains and trade policies changing?

Countries and companies are diversifying critical mineral sources to reduce dependence on dominant suppliers and are investing in domestic processing capabilities. These shifts are prompting changes in trade policies and supporting new exploration initiatives.

What implications does rising critical-minerals demand have for equity markets?

Equity performance begins to reflect the evolving critical-minerals landscape. Established producers may see renewed investment as strategic reserves grow in importance, while emerging players could introduce new competitive dynamics affecting valuation and risk.

Oct 5, 2026

Upload by Rhys