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.