Copper supply may fall short as global demand rises

Global demand for copper is rising because of electric vehicles, clean-energy projects and data centers, while recent mine outages, slower discovery of new deposits and trade disruptions have tightened supply and pushed prices to record levels.

Copper demand is growing across transport, power and computing technologies. The metal is central to electric vehicles, renewable energy systems and the data centers that support artificial intelligence. Recent production outages and trade disruptions have tightened supply and helped push prices to new highs. The article reports that longer development times for new mines and falling ore grades are complicating efforts to increase output. Current situation: - Copper is widely used in electrified products and infrastructure, and demand is expected to rise substantially over the coming decade, with BloombergNEF citing a potential increase of more than a third by 2035 in its baseline scenario. - Several major mine setbacks in 2025 were reported, including flooding at the Kamoa-Kakula complex in the Democratic Republic of the Congo, a tunnel collapse at Codelco’s El Teniente mine in Chile, and a mudslide at Indonesia’s Grasberg mine. - Smelting capacity, particularly in China, has expanded faster than miner output, putting pressure on smelters’ margins and risking further supply tightening if smelters cut production. - New copper discoveries are slowing and ore grades are falling; of 239 major deposits found from 1990 to 2023, 14 were discovered in the final ten years, and average lead time from discovery to first output exceeds 15 years. - The article reports that U.S. trade measures announced in 2025 on semi-finished copper products have encouraged shipments to the United States and raised Comex inventories to multiple times their year-earlier levels. Summary: Rising demand from electric vehicles, renewable energy and AI data centers is likely to keep upward pressure on copper requirements. Recent mine disruptions, slower discovery and development of new deposits, and trade shifts have tightened available supply and contributed to record prices. Undetermined at this time.