July 24, 2025

This months issue is a 7 min read

As summer heats up across Canada, so too does the economic conversation. Markets are navigating a season defined by trade friction, policy recalibration, sectoral divergence and artificial intelligence, with signals that are anything but static.

As AI adoption accelerates and tech platforms compete for computational scale, demand for the physical building blocks of these systems - lithium, cobalt, copper, graphite, rare earths and others - is intensifying. These are no longer just mining stories, they're infrastructure, supply chain and geopolitical stories unfolding in real time.

Last month, we featured Canadian issuers pivoting toward decentralized finance, blockchain, AI and digital currencies. This month, we take a deeper dive on the opportunities surrounding the convergence of critical minerals and the tech boom.



From TradingView

As of close on Wednesday July 23, 2025

Employment figures from June showed the Canadian economy added a better-than-expected 83,000 jobs. The decline in the unemployment rate (and rise in the employment rate) bucks a 4-month trend and marks the first decline in unemployment this year. The news comes amidst improvement in the CFIB Business Barometer and an increase in the Ivey PMI.

The Canadian property market also showed signs of modest improvement with home sales up 2.8% in June. This happens along the backdrop of elevated June inflation numbers, reducing the chances of a BoC rate cute at the end of the month, keeping servicing costs higher for borrowers and forecasts in the property markets mixed.



The price of Bitcoin continues to hit all time highs as the cryptocurrency receives unprecedented institutional demand and regulatory recognition. Bank of America crowned it the best-performing currency of 2025 displaying mainstream financial acceptance. The US Congress discussed significant legislation last week to regulate stablecoins.

As the mainstream warms to cryptocurrencies and interest rates come down, the case for Bitcoin is bullish. Some analysts have the currency reaching $200,000 in a year, a 69% increase from its current price.

The AI Revolution is Fuelling a New Industrial Metals Supercycle

The rise of artificial intelligence is quietly triggering one of the most significant demand surges for industrial metals since the internet boom or global electrification.

Why? Because AI doesn't just run on code - it runs on copper, lithium, nickel, cobalt, aluminum, rare earths and more.

Let's break down how these critical metals power the AI ecosystem:

Copper: The circulatory system of AI infrastructure

Lithium, Cobalt, Nickel: The battery triad energizing AI mobility

Aluminum and Steel: The structural backbone of smart machines

Rare Earth Elements: The Invisible enablers of precision, sensors, and performance

Bottom Line for Investors:

The AI-driven demand for metals is multi-dimensional:

• Data infrastructure (servers, power, cooling systems)
• Physical devices (robots, autonomous vehicles, factory automation)
• Clean energy transitions (EVs, nuclear, solar, grid upgrades)

This is not a short-term trade. We're at the start of a decade-long structural super-cycle where hard assets are no longer cyclical - they're essential.

1 minute video

Deep Dive: Why Copper Is the Cornerstone Metal of the AI Economy

As AI expands from cloud servers to physical automation, copper demand is accelerating - not just from legacy sectors like construction or telecoms, but from the electrified infrastructure required to power and mobilize AI systems.

A Structural Supply Crunch

• New copper mines take 10-15 years from discovery to production
• Ore grades are declining at many existing projects
• Permitting delays and ESG hurdles are slowing development
• Demand is rising - from AI, EVs, renewables, 5G, and grid modernization

Result: A structural supply deficit is forming

Investment Implication: A Generational Opportunity in Copper.

• Copper is now a strategic enabler - not just a cyclical commodity
• We are in the early innings of a copper bull market
• High-quality copper developers and producers - especially in stable jurisdictions - are poised for massive re-ratings over the next decade

China's Dark Factories; So Automated, They Don't Need Lights | WSJ

Additional Resources

• Bridging the Copper Supply Gap | McKinsey & Company

• AI and the Growth of Data Centres: Challenges for the Copper Market | Banque de France

• DeepSeek, Data Centers and Copper Demand | Hotter Commodities | Fastmarkets

• Why AI Data Centres are Driving Copper Demand | BHP

• Sprott Asset Management: Learn More About The Role That Copper and Other Critical Minerals Play in the Ongoing Growth of Global Electricity Demand

Where insight meets opportunity - tailored solutions and strategic guidance to help you navigate the capital markets with confidence. Reply to this email or reach out to Nick at nick@grovecorp.ca to explore how Grove can help your business.

Contact us via email at sales@agmconnect.com or by calling 416-222-4202

Speak to an expert today by emailing sales@otcadvisoryservices.com or by calling 416-799-7061