“I will immediately terminate the green new scam. … That will be such an honor. The greatest scam in the history of any country.”
– President-Elect Donald Trump
No mis-interpreting that.
Since his first term eight years ago, Donald Trump has been critical of the push toward green energy. Six months into his first term he had both guns blazing. From a speech in the White House rose garden:
The Paris Climate Accord is simply the latest example of Washington entering into an agreement that disadvantages the United States to the exclusive benefit of other countries…
Thus, as of today, the United States will cease all implementation of the non-binding Paris Accord and the draconian financial and economic burdens the agreement imposes on our country.
This time around he was no less adamant about the country’s commitment to renewable goals.
Given his vocal opposition to the green movement, you might think it bodes badly for the mining industry in the US; that the fossil fuel industries (oil, nat gas and coal) would be the big winners.
But that’s not necessarily the case.
Because while the Biden admin was focused on pushing a green transition, Trump has suddenly seen the light in a different, but no less mineral-intensive area…
Trump’s AI-Crypto Push
Donald Trump has been a proponent of the AI movement since his first term. In 2019 he signed an executive order that was designed to advance the US’ interest in all areas of AI.
“Continued American leadership in Artificial Intelligence is of paramount importance to maintaining the economic and national security of the United States.”
– President Donald J. Trump
This time around he is no less pro-AI.
But another area has seen him do a complete about-face… the crypto industry
In 2019 he tweeted…
But earlier this year, candidate Trump stood before a crowd of crypto enthusiasts at Bitcoin 2024 — the largest gathering of the crypto industry in the US — and made a series of statements changing his tune. Here are a couple:
“I stand before you today filled with respect and admiration for what the Bitcoin community has achieved. It’s incredible, actually…”
“But I say this is the steel industry of 100 years ago, really is. I think you’re just in your infancy. I can see it happen. In just 15 years, Bitcoin has gone from merely an idea posted anonymously on an internet message board to being the ninth most valuable asset anywhere in the world.”
“The reason I’ve come to address the Bitcoin community today can be summed up in two very simple words: America first. Because if we don’t do it, China is going to be doing, others are going to be doing it. Let’s do it and do it right.”
In another bold statement he said…
“If crypto is going to define the future, I want it to be mined, minted and made in the USA.”
Like the green energy sector, the AI/crypto industries would require significant amounts of minerals to grow and evolve.
Huge amounts of copper would be essential for both developing AI infrastructure and powering crypto mining rigs.
Rare earth elements including neodymium, cerium, praseodymium and gallium among others are all used in AI chipsets and drive boards.
Lithium, of course, is still the biggest battery metal in the world.
Silicon, an often overlooked element, is critical for producing semiconductors.
But while both the green and crypto/AI industries create demand for mined materials, there’s one big difference between them.
The green industry has been in large part pushed (and funded) by the US government — an indication that, while it may be sustainable some years down the road, the industry currently can’t stand on its own.
AI and crypto on the other hand, are both markets that have been developed by the private sector. Participants (who aren’t governments) are using their own capital to develop the industry. And this makes crypto and AI a significantly more stable source of demand for inputs.
Which makes Trump’s crypto and AI goals a real boon for the mining industry.
“A Trump administration is likely to be pro-mining, which means more mines could be permitted and put into production faster,” says Hugues Jacquemin, CEO of Northern Graphite, the only producer of natural graphite in North America.
All of which means 2025 and beyond could be exciting years for miners under Trump…
