Running on Empty: Copper
3 days ago
- #resource-depletion
- #copper
- #energy-transition
- Copper prices have reached record highs due to supply constraints, with a projected 10 million ton shortfall by 2035.
- Global copper production is expected to decline by 15% by 2035 as discoveries slow and existing mines deplete.
- Demand for copper is driven by electrification, AI data centers, and traditional economic growth, especially in the Global South.
- Renewable energy systems require significantly more copper per megawatt than fossil fuel plants, exacerbating demand.
- China consumes nearly 60% of global copper, with India and Vietnam emerging as major future consumers.
- Copper is a finite resource, with declining ore grades making extraction more energy-intensive and costly.
- Recycling efforts are insufficient to meet future demand, with only 40-43% of available scrap being recovered.
- Substitution of copper with materials like aluminum is technically challenging and often reduces performance.
- Peak copper production is expected between now and 2030, coinciding with peak oil and other resource limits.
- Theft of copper infrastructure is increasing, adding to maintenance costs and operational challenges.