By Jia H. Jung
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The global chemicals sector wields $5.7 trillion in worldwide economic impact, the European Chemical Industry Council reported at the top of this year. Diverse players all along the value chain have adapted to ongoing market fluctuations, geopolitical conflicts and safety, environmental and trade regulations that are increasing, changing or tightening.
Urgent material demands for everything from commodities to the cutting-edge computer chips they help build are pushing companies to pivot, optimize, cooperate and invent with their human experience and the power of artificial intelligence. These adjustments represent a major evolutionary stage for the sector.
“Every product in the modern world now needs rare earths, precious metals or technology metals. What AI will do is increase demand for these materials because of new electronic and computing applications that require these raw materials,” said Matthias Rüth, founder and CEO of Tradium. These needs are prompting the discovery of new materials, trade paths, relationships and ways to optimize resources, including waste. They are also resetting the bases of economic competition.
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As data centers proliferate to upgrade the foundation for modern computing, the demand for power to build and run them far outstrips supply. The result is next-generation energy innovation. “Our original plan was to demonstrate the technology this decade and prepare to scale in the 2030s. Demand has accelerated, and the question is now how much clean, reliable power we can deliver, and how quickly,” said Dr. Mike Laufer, co-founder and CEO of Kairos Power.
“Energy storage systems and AI data centers are growing at exponential rates, many of which are being powered by batteries. This is increasing the demand for critical minerals needed to manufacture new batteries,” said David Klanecky, president and CEO of Cirba Solutions.
Another crisis beyond geopolitical conflict and scarcity of materials for certain regions, particularly the United States and Europe, is the struggle to competitively refine metals, chemicals and minerals to the quality and purity required by advanced, booming industries. “While the current administration retracts wind and solar initiatives, it is prioritizing critical materials and batteries because of their importance from both an economic and national security perspective,” said Rick Luebbe, CEO of Group14 Technologies in the U.S.
The convergence of critical material scarcity with ever-increasing post-consumer waste is vaulting advanced recycling technologies toward commercialization after building patiently for years. The once fantastical promise of AI-assisted novel materials discovery has arrived. Amid this wave of material innovation, environmental health has emerged as a major corporate priority. Over the next decade, adaptability will be the industry’s defining currency. As companies navigate persistent headwinds of geopolitics, energy shortages and an unparalleled demand for scarce raw materials, those who turn disruption into a competitive edge will lead the future.
We spoke to over 70 CEOs, trade association directors, science and strategy officers, vice presidents and founders in petrochemicals, specialty chemicals distribution, manufacturing, advanced recycling, data infrastructure, validation, logistics, personal care, materials discovery and environmental solutions for their take on who will answer the call to take human progress to the next level, and how.
“Critical minerals are just rocks without chemistry,” – Greg Moffatt, CEO, Chemistry Industry Association of Canada (CIAC)
“Lithium is an energy security story. Our industry still relies heavily on physical processes. We are one of the industries you cannot AI. Grow it or dig it – data centers are not going to be possible without people like us,” – Jonathan Evans, President & CEO, Lithium Americas
“In 40+ years working through various geopolitical, pandemic and climate crises, I've learned: if you wait until day one of a crisis to prepare you're already too late.” – Gina Fyffe, Founder & CEO, Integra Petrochemicals
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This report has been paid for by a third party. The views and opinions expressed are not those of Newsweek and are not an endorsement of the products, services or persons mentioned.
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