Why Lithium, Copper, and Uranium Are Set to Soar in the Global Energy Transition

The global energy landscape is undergoing a massive transformation, with electricity emerging as the new engine of economic growth. The demand is increasing, outpacing all other energy sources as the world shifts toward electric vehicles (EVs), AI-powered data centres, and digital infrastructure.

Renewables are leading the charge, but nuclear and fossil fuels still play vital supporting roles. This accelerating electrification wave is driving a surge in demand for key raw materials. Lithium powers the batteries, copper delivers the current, and uranium ensures grid stability. These three elements have become the backbone of the energy transition and a strategic focus for long-term investors.

Rising Global Electricity Demand

The International Energy Agency (IEA) reports that global energy demand increased by 2.2% in 2024. However, electricity demand surged by 4.3%, nearly double the pace of overall energy growth.

Renewables accounted for the largest share of demand growth at 38%, followed by natural gas (NG) at 28% and coal at 15%. Oil contributed 11%, while nuclear made up 8%. The data shows that the energy transition is underway, with renewables leading growth, but fossil fuels and nuclear still play significant roles in meeting rising electricity needs.

This surge reflects structural shifts in the global economy. More households and industries now rely on electricity-intensive appliances such as air conditioning. Manufacturing is also moving toward electricity-heavy processes, increasing pressure on grids worldwide.

New technologies are driving additional demand. Rapid adoption of EVs, the expansion of AI and data centres, and the broader digitalisation trend require vast amounts of power. This shift underscores electricity’s central role in future growth and highlights the pressure on raw materials needed to sustain it.

Why Critical Materials Matter for the Energy Transition

The surge in electricity demand has increased the need for battery solutions. In particular, lithium is essential for batteries and energy storage systems that support solar and wind power. Furthermore, the rapid expansion of EVs and grid-level storage creates long-term structural demand. The lithium shortages can slow adoption and disrupt renewable integration. According to Statista, the chart below shows that the demand for lithium-ion batteries will reach 9,300 gigawatt-hours by 2030.

On the other hand, copper is used in motors, charging stations, transformers, and transmission lines. The shift toward EVs and smart grids is driving a surge in copper demand. Without copper, clean energy infrastructure cannot scale. Grid upgrades in emerging economies also depend on a reliable copper supply.

According to the chart below, global data centre power demand is projected to reach 127 GW by 2028, mainly driven by generative AI workloads. As a result, this rapid growth in electricity needs strengthens the case for uranium. Unlike intermittent renewables, nuclear power offers a stable, carbon-free baseload source essential to supporting AI and digital infrastructure. Therefore, uranium ensures energy security in areas where renewables alone fall short.

Lithium stores the power. Copper delivers it. Uranium keeps it steady. These three elements form the backbone of the electrified world. As electricity becomes the dominant force in global energy, the pace of the transition now hinges on the supply of electricity. Policymakers and investors are watching them closely as electricity becomes the world’s primary energy driver.

Lithium Rebounds Sharply as Supply Tightens and EV Demand Surges

Lithium carbonate prices jumped over CNY 84,000 per tonne in August, hitting a one-year high. This rally was over 30% after a rebound from the June bottom, which erased earlier losses for the year.

The lower output from key mines helped offset oversupply concerns. China pledged to cut capacity in deflation-hit industries, signalling tighter lithium supply. Investors responded by betting on reduced output from the world’s top lithium refiner. This momentum was further increased after CATL halted production at its Jianxiawo mine, which lacked a renewed permit. The mine accounts for about 5% of global supply.

The chart below compares the performance of three lithium-related ETFs: the Sprott Lithium Miners ETF (LITP), Global X Lithium & Battery Tech ETF (LIT), and iShares Lithium ETF (ILIT). All three ETFs experienced a prolonged downtrend from early 2023 through mid-2024, reflecting lithium market weakness. However, a noticeable rebound occurred around April–May 2025, shown by the upward arrows.

It is observed that the Sprott Lithium Miners ETF led the rally with a 73% gain since the bottom in 2025. On the other hand, iShares Lithium ETF followed with a 61% rise, and the Global X Lithium & Battery Tech ETF climbed over 45%. The upward trend aligns with rising lithium prices, tightening supply expectations, and the growing demand from EVs and battery storage. As electrification accelerates, capital continues to rotate back into lithium assets.

Copper’s Long-Term Uptrend Holds as Prices Reverse From Key Resistance

The long-term outlook for copper is observed through the quarterly chart below. It shows that prices have been trending higher within an ascending channel. Each time the price touches the lower trendline, it recovers sharply.

For example, copper bottomed in July 2002 at $0.65. It then surged to record highs by 2006. After this rally, prices dropped during the 2008 financial crisis to a low of $1.24. From there, copper rebounded and reached a high of $4.59 in 2011.

After this peak, the price again dropped to form a double bottom in 2015 and 2019. Prices broke above the neckline at $3.29 and began a strong upward move. This rally reached a high in 2025 at the $5.98 area, followed by a sharp reversal in Q3 2025.

This recent reversal in copper prices was due to the resistance of the ascending channel. However, the prices are now approaching the channel’s midline, suggesting possible volatility in the coming months.

To understand the bullish price action in copper, the monthly chart below highlights an ascending channel formed between the March 2020 low and the July 2025 high. This channel shows strong support at $4.30, and a break below this level could trigger a decline toward the $3.35 support area. However, the $2.70 zone remains the long-term support for copper, indicating strong buying pressure around that level.

Uranium Rally Gains Strength on Supply Constraints and Data Centre Demand

Uranium prices remain bullish and hold $71 per pound support in August. This level comes after a pullback from the June peak of $79, when holding funds paused their aggressive buying.

The Sprott Physical Uranium Trust fueled the rally by committing $200 million for new uranium purchases, twice the amount first planned. However, uranium trades in a thin market; these large purchases had an outsized impact, sharply lifting prices and keeping momentum strong. This strong momentum is observed by the rounding cup pattern in the chart below, which indicates continued upward momentum.

The short-term outlook for uranium is also bullish, as the chart below shows a rounding cup pattern on shorter time frames.

Institutional Buying and Tech Giants Drive Momentum

The support for uranium comes from rising demand expectations. Microsoft Corp (MSFT), Alphabet Inc. (GOOG), Amazon.com, Inc. (AMZN), and Meta Platforms. Inc. signed nuclear power supply deals to secure energy for future datacenters, signalling a structural shift in consumption. On the supply side, Kazatomprom confirmed output of 14 million pounds, nearly 20% below earlier targets, tightening the market further. French miner Orano also warned of a possible closure of its SOMAIR mine in Niger, adding to supply risks. This mix of firm demand and constrained output keeps uranium well-positioned for sustained gains.

The chart below shows the performance of various uranium-related instruments used by investors to gain exposure to the sector. Global X Uranium ETF (URA) has followed a long-term downtrend since 2011, falling from above $100 to below $20 before stabilising and gradually recovering toward $40. This ETF tracks a basket of uranium mining companies. Its movement reflects the prolonged bear market after the Fukushima disaster, followed by a renewed uptrend as nuclear energy gained momentum post-2020.

Moreover, Sprott Uranium Miners ETF (URNM) shows intense volatility with higher highs since 2021, reflecting investor demand for miners leveraged to uranium prices. Sprott Physical Uranium Trust Fund (U.UN) and Sprott Physical Uranium Trust (SRUUF), which directly hold physical uranium, display steadier growth patterns, showing uranium’s gradual appreciation in spot markets since 2020. These instruments illustrate how uranium has moved from a decade-long slump into a period of structural recovery, driven by energy transition policies and renewed nuclear demand.

Conclusion: Why Lithium, Copper, and Uranium Are Set to Soar

The global energy transition is accelerating. Electricity demand is rising faster than overall energy use, driven by EVs, AI, data centres, and digitalisation. This shift creates structural demand for critical raw materials. Lithium, copper, and uranium form the foundation of this new energy economy. Investors should closely watch these markets as the next decade will be shaped by the race to secure these resources.

Lithium, copper, and uranium offer a unique investment edge:

• Lithium powers EV batteries and grid storage. The prices rebounded sharply in 2025 due to tightening supply and strong demand. ETFs like LIT and LITP rallied over 70%, signalling investor confidence.
• Copper is essential for electrification. Copper demand is increasing due to the need for use in EV motors and the development of grid infrastructure. The long-term technical charts show an ascending channel, with prices bouncing strongly from key support levels.
• Uranium ensures stable, carbon-free baseload power. Tech giants are locking in nuclear deals to fuel AI data centres. Supply disruptions from Kazatomprom and Niger amplify its bullish outlook.

From a technical perspective, all three commodities show solid foundations for long-term accumulation. Specifically, lithium-related ETFs are forming recovery patterns after multi-year bottoms. Meanwhile, copper has reversed from long-term support in the quarterly trend channel, pointing to structural upside. At the same time, uranium remains in breakout mode, supported by thin supply and rising institutional demand.

Therefore, investors may consider buying copper at $4.30 levels and add more positions if the price drops to $3.35 and $2.70 levels. Moreover, uranium and lithium are considered strong buys at current levels. These materials are not just cyclical trades; they are strategic assets for the decade ahead.