Copper demand surges due to green energy and data center growth

Global demand for copper is rising significantly due to the transition toward green energy, the expansion of electric vehicles, and the growth of data centers. As an excellent conductor of electricity, copper is essential for electrical grids, solar panels, wind turbines, and electronic equipment. According to the USGS, approximately three-quarters of copper usage is linked to electrical applications.

The International Energy Agency (IEA) predicts that global demand for the metal could increase by about 30% by 2040. However, supply may struggle to keep pace. Opening new mines requires substantial investment, infrastructure, and lengthy permitting processes. Furthermore, declining ore quality in established mining regions is making production more difficult and expensive. The IEA warns that current production plans could lead to a significant supply deficit by 2035.