Key Metals and Mining Investment Themes Emerge for 2026

With 2026 underway, investors are surveying the landscape for potential themes and trends in mining equities, precious metals, and rare earth ETFs. Understanding the difference between mining ETFs and the commodities they extract is crucial for those viewing this sector as a necessary component of a diversified portfolio. Metals often overlooked by investors, such as copper and uranium, warrant consideration as fundamentals appear to support potential price increases.

Copper's rally has been driven by an abrupt shift into a supply deficit following a cluster of major disruptions, forcing the market to replace supply faster than anticipated according to a Sprott report. A series of industry setbacks is compounding a problem estimated to persist through 2026. The market impact is amplified by copper's historical supply reliability issues, where unplanned outages typically average about 5% of global supply. Previously, such disruptions could be absorbed more easily. Today, however, fragmented inventories and reduced market flexibility to balance regional tightness increase the likelihood that even incremental supply issues will push prices higher.

Artificial intelligence is rapidly becoming a defining technology, with a new UN Trade and Development (UNCTAD) report projecting the global AI market will surge from $189 billion in 2023 to $4.8 trillion by 2033. By then, AI could quadruple its share of the global frontier technology market, rising from 7% to 29% and emerging as the sector's dominant force. Demand drivers for copper include the construction of AI data centers and associated electrification, with copper likely eclipsing traditional uses at the backbone of major industrial projects. Additionally, Glass Magazine forecasts 4% growth in nonresidential and residential construction to $1.26 trillion in an easing interest-rate environment, further motivating builders.

Copper mining companies offer investors exposure to the metal, potentially providing advantages over the commodity itself. The Sprott Copper Miners ETF (NASDAQ: COPP) and Sprott Junior Copper Miners ETF (NASDAQ: COPJ) provide that exposure. As of February 18, COPP has attracted $284 million in assets under management since its March 2024 launch, carrying a 0.65% expense ratio, while COPJ has $198 million in AUM with a 0.75% expense ratio. According to Benzinga data, COPP's share price surged from $16.22 to over $46 per share, with COPJ showing similar returns from its February 2023 launch, rising from $16.22 to $46.66 per share as of February 23.

Approximately 73 nuclear power projects are currently under construction worldwide, with another 117 planned, primarily in Asia and China according to the World Nuclear Association (WNA). The association notes 436 nuclear power plants operate in 31 countries, with about 30 additional countries considering planning or starting nuclear programs. The Sprott Uranium Miners ETF (NYSE: URNM) will be one to watch as uranium is critical for nuclear plants, and new facilities coming online will increase demand for the material.

Over the past year, the Sprott Junior Gold Miners ETF (NYSE: SGDJ) outperformed the metal as reflected in SPDR Gold Shares by more than two-to-one, with SGDJ rising 176% compared to GLD's 73% return according to Stockcharts.com. Gold maintains prominence as a globally accepted neutral reserve asset, reinforcing its role as a hedge against systemic risk and geopolitical uncertainty. Junior gold miners ETFs like SGDJ focus on smaller companies exploring for new gold deposits. When gold prices rise, these companies may experience increased investor interest as their business models link to exploration and development of potential resources. Historically, metals flowed freely to regions of highest demand, balancing global inventories through transparent exchanges like the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME). Today, this mechanism is fracturing as geopolitical tensions, resource nationalism, and tariff walls disrupt the free movement of metals.

Lithium is often overlooked by metal sector investors despite its growing usage in electric vehicles, which may continue as combustion engine regulation increases. Grandview Research projects a 32.5% increase in EV sales between 2025 and 2030, with many countries encouraging EVs through subsidies and tax benefits. The Sprott Lithium Miners ETF (NASDAQ: LITP), driven by electric vehicle adoption and energy storage demand, offers targeted exposure to companies across the lithium mining supply chain. Similarly, the Sprott Critical Materials ETF (NASDAQ: SETM) provides broad access to companies involved across battery metals and materials supply chains, including lithium, nickel, copper, graphite, and rare earths. This fund features not only mining but specific processing and enabling technologies, offering a more balanced approach to participating in lithium demand without relying on a single commodity cycle.