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Copper industry needs to invest $2.1 trillion over the next 25 years to meet demand - MINING.COM

Feb 28, 2025 - mining.com
The article discusses the projected increase in global copper demand, driven by the energy transition, digital sector growth, and transportation advancements, with demand expected to rise by 70% by 2050. BHP and other sources highlight the challenges of declining copper mine grades and the need for significant investment to bridge the supply-demand gap. China, as the largest copper consumer, plays a crucial role in the market, with its economic policies and consumption patterns significantly impacting global copper prices. The article also notes the potential for supply deficits in critical energy transition metals, including copper, due to insufficient raw material availability.

The shift to renewable energy and electric vehicles is expected to significantly boost copper demand, with clean tech copper usage projected to rise by 81% by 2035. The article highlights the challenges of meeting this demand, including lengthy mine development processes, underinvestment in the mining sector, and geopolitical instability in key copper-producing regions. Despite these challenges, there is optimism about a new copper supercycle driven by global decarbonization efforts, although concerns about resource nationalism and supply chain disruptions remain.

Key takeaways:

  • Global copper demand is expected to increase significantly by 2050, driven by the energy transition, digital sector growth, and transportation electrification.
  • China's economic activities and policies are crucial for the copper market, with recent measures aimed at stimulating growth potentially impacting global copper demand and prices.
  • The supply of copper faces challenges due to declining ore grades, underinvestment in new mines, and geopolitical instability in key producing regions.
  • Massive investments are needed to meet future copper demand, with estimates suggesting trillions of dollars required by 2050 to support the energy transition and other technological advancements.
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