US Government's AI Program for Critical Minerals Market Transferred to Non-Profit Organization
The US government's initiative using artificial intelligence to forecast the supply and price of essential minerals has been shifted to the Critical Minerals Forum (CMF), a new non-profit established to enhance metal supply transparency and lessen dependence on China as published by Reuters.
The initiative, originally sponsored by the Department of Defense in 2023, targets reshaping the way metals like lithium, nickel, and rare earths are purchased and sold around the globe.
CMF Mission and Industry Role
The CMF seeks to assist in securing reliable and transparent metal supply chains, particularly for industries like automotive, energy transition, and defense. The organization, now with over 30 members including Volkswagen, MP Materials, and RTX, plans to leverage the AI model developed by the US government.
The goal is to help manufacturers avoid over-reliance on China for their critical minerals by providing market insights and helping negotiate better supply deals with Western mines.
The AI Model's Role and Benefits
The CMF’s AI model calculates fair prices for critical minerals by factoring in production costs and excluding market distortions. It helps forecast supply and pricing impacts from shocks like tariffs, enabling manufacturers to plan investments or secure long-term supply deals.
Though the project has been welcomed by major industry players, it has also come under criticism from some market observers. Critics say that the AI model might not be capable of changing the very established patterns of international mineral trade, which had always been opaque and geopolitics-driven.
Also read: Israeli AI Model Offers Breakthrough in Predicting Wildfire Lightning Strikes
Challenges and Skepticism
While the initiative has received praise from key industry players, it has also faced criticism from some market experts. Critics argue that the AI model may not be able to fundamentally transform the long-established practices of global mineral trade, which have traditionally been opaque and influenced by geopolitics.
