Critical Commodities for 2026

Published date: 12th February 2026 | Author: Jacob White, Sprott Asset Management

Uranium and copper have emerged as two of the most strategic materials for the decade ahead, underpinning the future of energy, technology, and national security. Both metals could potentially play a significant role in the development and deployment AI, through powering this evolving technology as efficiently as possible, and by enabling its distribution from data centres to end users.

The bullish nature of uranium

In the new year, we believe that uranium’s setup is distinctly bullish. Nuclear power has regained prominence as nations prioritise reliable baseload generation to support rising electricity demand and grid resilience. The uranium industry is being shaped by production guidance cuts from major suppliers, long development timelines that often exceed a decade, and diminishing secondary sources, all of which have left reactor requirements outpacing mine output.

« …hyperscale data centres are prioritising nuclear power to meet rising electricity needs… »

Nuclear power has rose in prominence as a potential energy source for a number of global powers.

The concentration of supply in non-Western jurisdictions adds a layer of geopolitical risk, intensifying the need for reliable procurement. New demand vectors are also forming: Small Modular Reactors are progressing from initial concepts, while hyperscale data centres are prioritising nuclear power to meet rising electricity needs with high availability.

While nuclear energy has already garnered significant investor attention and capital allocation due to its strengthening fundamentals, the opportunity in uranium remains especially compelling, as its own fundamentals continue to improve, positioning this uranium industry to benefit specifically in the year ahead. Despite the increase in the uranium term price, producers have stated that the current level does not normalise the additional production needed to close the supply deficit. As a result, uranium prices likely need to move higher to bring new supply online and balance the market.

Against this backdrop, 2025 marks the 13th consecutive year that utilities have contracted below their replacement rate, as they continue to delay purchases.

Demand for copper is shifting towards supporting technological advances

Copper’s constructive 2026 outlook

Copper’s outlook for the months ahead and into the new year is highly constructive. The market has abruptly moved into a supply deficit this year, with forecasts suggesting that this shortfall will only grow. Concurrently, copper’s demand profile is transforming, moving beyond traditional sectors like construction and consumer goods toward areas vital for global progress and fast-growing, including energy infrastructure, advanced technology, and defence.

On the supply side, inventories are thin, ore grades have declined to historically low levels, and discoveries are decreasing. The process of bringing new mines online is lengthy and complex, now averaging about 17 years from discovery to production, more than double the timeline of previous decades.

In this environment, copper miners may be well positioned to benefit, with healthy margins supported by strong demand and constrained supply. As copper becomes increasingly central to some of the world’s most important sectors, we believe the market setup suggests further upside in the years ahead.

« On the supply side, inventories are thin, ore grades have declined to historically low levels, and discoveries are decreasing »

Critical commodities for the future?

The common thread between uranium and copper is the scarcity of these resources, which meets growing demand from critical industries. As structural demand remains strong and supply elasticity stays limited, we believe both markets are positioned to continue their bull cycles, further supported by strengthening policy tailwinds. For instance, both metals were designated as critical minerals in the U.S. in 2025, and key projects are being fast-tracked in Canada and the U.S.

Investors are responding to these dynamics by allocating to physical metal and mining equities, anticipating multi-year cycles of scarcity that amplify price momentum and reinforce confidence in long-term fundamentals. We believe these metals are not just short-term opportunities, but that they represent foundational exposures that merit investor consideration for the years ahead.

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Critical Commodities for 2026

The bullish nature of uranium

﻿ « …hyperscale data centres are prioritising nuclear power to meet rising electricity needs… »

Copper’s constructive 2026 outlook

﻿ « On the supply side, inventories are thin, ore grades have declined to historically low levels, and discoveries are decreasing »

Critical commodities for the future?

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« …hyperscale data centres are prioritising nuclear power to meet rising electricity needs… »

« On the supply side, inventories are thin, ore grades have declined to historically low levels, and discoveries are decreasing »