“As we look towards 2050, we foresee global copper demand increasing by 70% to reach 50 million tonnes annually. This will be driven by copper’s role in both current and emerging technologies, as well as the world’s decarbonization goals,” says BHP’s chief commercial officer Rag Udd.
The largest mining company in the world expects that by 2050 the energy transition sector will represent 23% of copper demand compared to the current 7%. The digital sector including data centers, 5G and AI is projected to rise from 1% today to 6%. Transportation’s share of copper demand is expected to climb from about 11% in 2021 to 20% by 2040, thanks to the EV rollout.
On the supply side, BHP points to the average copper mine grade decreasing by around 40% since 1991. The next decade should see between one-third and one-half of the global copper supply facing grade decline and aging challenges. The company estimates that an investment of $250 billion will be required to address the widening gap between supply and demand.
For the rest of this column: https://www.kitco.com/opinion/2025-02-10/copper-price-remain-elevated-due-increasing-demand-electricity-and-supply