AI isn’t just transforming industries. It’s transforming the way energy is stored and distributed. Scaling at unprecedented speeds across the country, data centers today require a reliable, uninterrupted power supply, often consuming as much electricity as small cities. This puts immense pressure on power grids.
Nationwide electric demand is forecast to increase by nearly 16% by 2029. The main drivers of that increase are investments in data centers, manufacturing, and geopolitical and national strategic industries. Two years ago, the amount of global electricity generated to supply data centers was 460 TWh. This is projected to more than double to 1,000 TWh in 2030, and increase to 1,300 TWh by 2035.
For AI data centers, batteries are no longer just for emergencies. They ensure these centers remain operational. Large-scale energy storage is now embedded in daily operations, giving operators the ability to actively manage power and predict reliability of these installations. Predictable cycles allow batteries to smooth demand through load shifting and peak mitigation. They also support renewable integration by storing and dispatching energy as needed. As policy and lifecycle considerations evolve, batteries are the long-term infrastructure solution to support both grid stability and operational resilience.
THE NEED FOR BATTERIES
Because of this, there is a surging demand for batteries to support the AI boom and this “always on” power mentality. This will be especially true for large-format batteries due to the technological advancements of lithium-based batteries. Today, the U.S. is heavily reliant on foreign sources for the critical minerals required to manufacture batteries. It is estimated that nearly three-quarters of the United States’ lithium-ion batteries come from foreign entities.
The rise of AI data centers is dramatically accelerating the demand for critical minerals like lithium, nickel, cobalt, and more. And even with the focus on current initiatives, the United States is not strategically positioned to support the needs of the AI data center industry fully with domestically produced materials.
BATTERY RECYCLING AND CRITICAL MINERAL REFINEMENT
That’s where battery recycling and critical mineral refinement come in. Both are foundational to the core infrastructure required to stabilize AI data centers long term, given the current growth trajectory. End-of-life batteries contain valuable critical minerals. And there are plenty of batteries available—in cars driving on our roads, living in our junk drawers, stored in our garages, etc. So, we must take advantage of what we have domestically, recycle those used batteries, and extract the critical minerals to be used over and over again. These critical minerals can be used for batteries AI data centers rely on.
Extracted critical minerals from end-of-life batteries and manufacturing scrap are already in the U.S. and can be put back into the nation’s supply chain. This not only allows us to be more globally competitive in the AI race. But by strengthening our critical mineral supply chain, we can enhance national security, reinvent our manufacturing capabilities (including the refining of critical minerals and battery manufacturing), and position ourselves as a leading critical mineral producer.
INFRASTRUCTURE AND CAPACITY
The infrastructure and capacity to recycle and process end-of-life batteries and refine those materials into battery-grade metals is required. It is needed to achieve global independence and power the AI data centers being built at an unprecedented pace across the country. We must be leaders in all aspects of battery technology—from extracting critical minerals from end-of-life batteries through to the manufacturing of new batteries.
Batteries are truly the connection between uninterrupted power supplies and AI stabilization. With the increased demand for batteries, and ultimately critical minerals, recycling creates a closed-loop approach that strengthens domestic supply chains. In this global AI race, the real advantage is centered around who dominates the critical mineral supply chain.
David Klanecky is CEO and president of Cirba Solutions.
