Copper is durable, malleable and an excellent conductor of heat and electricity. Demand for copper is forecast to grow from 25 million tons today to 53 million by 2050, driven by three key factors:1
First, the electrification of transport, is projected to have the largest impact on copper demand. EVs require nearly 2.5x the amount of copper used in internal combustion engine (ICE) vehicles across electric motors, batteries, and charging infrastructure, and EV sales are projected to grow 35% in 2023.1,2
Second, copper demand from power grids is projected to grow nearly 5x by 2050.3 Thanks to its unmatched conductivity and corrosion resistance, copper is used extensively in power distribution and transformers, particularly underground and subsea lines, and is needed to upgrade aging transmission infrastructure.
Third, the shift toward renewable power generation technologies such as solar and offshore wind — which require 2x and 5x more copper, respectively, per megawatt of capacity vs. gas and coal — should further increase demand.1
In addition, the growing demand from building construction, appliances, electrical equipment, and cell phones, is still projected to account for 58% of copper usage by 2035.1 As emerging markets continue to grow wealthier, and urban populations expand, copper is crucial to meet the demands of a growing middle class for electronics as well as the building needs of a rapidly urbanizing world. (Read more about the structural growth opportunities in infrastructure.)
COPPER SUPPLY IS RESTRAINED
Forecast supply deficit, refined copper