As the artificial intelligence (AI) industry expands and demand surges for copper, an essential raw material for development, Amazon has moved to secure copper mines. Copper is a key material for transformers and wiring as well as AI server cables and circuit boards.
U.S. mining company Rio Tinto said on the 15th (local time) that it signed a two-year copper supply contract with Amazon Web Services (AWS), which runs Amazon's cloud business. Under the deal, AWS will be able to secure copper that Rio Tinto is mining at a site east of Tucson, Arizona.
The mine was originally considered a low-grade copper deposit with no economic viability, and development was halted. However, through the Nuton project, which uses bacteria and acid to extract copper, Rio Tinto has been able to produce copper.
Last year, copper futures prices rose 41% from the previous year on the back of the AI boom. Recently, they topped $6 per pound, hitting a record high. After the U.S. government imposed a 50% tariff on copper last year and hinted at the possibility of additional levies, there is further room for gains. However, the copper output of the mine for which Amazon signed the supply contract this time does not appear to be large.