Global copper demand is expected to grow by 50% by 2040: what this means for the market

Increase in copper demand by 2040

According to ХВИЛЯ: According to the S&P Global report, global copper demand is expected to grow by 50% by 2040, reaching 42 million metric tons. This significant increase may lead to supply shortages in the market, as copper production will not keep pace with demand. Forecasts suggest that by 2040, the metal deficit could reach 10 million metric tons.

Reasons for the increase in demand

One of the reasons for the increase in copper demand is the expected 50% rise in electricity consumption by 2040. This growth is associated with the growing use of electric vehicles, which require 2.9 times more copper than conventional internal combustion engine vehicles. Furthermore, data centers, which used about 4% of U.S. electricity last year, could increase this figure to 14% by 2030.

Experts believe that copper is a key metal for electrification. Daniel Yergin states:

“Copper is the metal of electrification.” - Daniel Yergin

Given the increasing demand, the launch of new copper mines will be an important factor. On average, it takes about 17 years to launch a new mine, which highlights the complexity of responding to the growing market needs. As Yergin notes:

“So, starting a new project is betting on the future.” - Daniel Yergin

In this context, the copper market is becoming more strained, and it is essential to understand how this can impact the economy and industry as a whole.

The increase in copper demand reflects global trends in electrification and the transition to renewable energy. As electric vehicles and data centers become increasingly commonplace, it is crucial for copper producers to be prepared for this challenge. A copper deficit could lead to rising prices for this metal, affecting the cost of electrical technologies and infrastructure. Investors and governments must consider these factors when planning future projects in the energy and industrial sectors.