Copper prices rise amid AI and energy transition demand

Global copper prices are rising, driven by surging demand from artificial intelligence (AI) data centers, power grid expansions, and the transition to renewable energy and electric vehicles. On the London Metal Exchange (LME), copper prices have seen recent increases, while inventories in both London and Shanghai have experienced declines.

Major mining companies such as Freeport-McMoRan and BHP Group are benefiting from this tight supply and rising revenues. Analysts suggest that the development of AI infrastructure and the need for expanded computing power will significantly increase the demand for copper, which is essential for cables and transformers. S&P Global estimates that global demand for the metal could increase by 50 percent by 2040.

To address supply constraints, there is a growing focus on recycling materials from decommissioned energy-transition infrastructure, such as old batteries and solar panels. Companies like Redwood Materials are already recovering high percentages of lithium, nickel, cobalt, and copper from spent batteries to create a more sustainable supply chain.