Meeting growing demands

Demand for copper has been growing at a rate of knots for the past decade and is set to do so into the future. Per the International Copper Association, global copper demand is set to rise 1.85% annually, from 28.3 million tonnes in 2020 to 40.9 million tonnes in 2040. So, what are the key factors driving this development, and why does it matter to society, and to individuals, that we keep increasing the global copper supply?

Below are the three biggest trends driving the increase in global copper demands.

1. Infrastructure development, urbanization and economic growth
You can’t have widespread, cost-effective electrification without copper. This makes copper vital for socioeconomic growth, particularly in developing parts of the world. It is incredibly important in housing, transpiration and other urban infrastructure. The world is seeing more people flooding urban areas, an escalating need for housing worldwide, and the inevitable infrastructure that is needed to supply ever expanding and more successful economies. Along with other factors, these are resulting in a rising demand for copper that the mining industry must grow to meet.

2. Technological advancements
Advances in technology, too, are driving increased need for copper. Data centers, automation and cellular networks all require copper for the components that make them work, and the systems that link them to their energy sources. These points of technological infrastructure are becoming increasingly important as we see the rise in required computing power from things like quantum computing and AI. Whether it’s the circuit boards that allow data centers to power advancements in computing or more simply the components that make up your mobile phone, copper is at the heart of most modern technological advancements.

3. Renewable energy and electrification.
This final trend we’ve written about in more length here. The crux of the matter is that as renewable energy sources and electric vehicles become more important, so too grows the demand for copper. These technologies require a huge amount of copper, from wiring to motors and other components.

These are just three of the largest trends increasing demand for copper – there are many more. Our industry must do what it can to meet this rising demand if we are to continue creating the society that we all wish to live in and benefit from the data, renewables and electrification that are the foundations of social and economic progress.