Copper Sees Growing Demand With Growing Production Of Electric Vehicles

By Shubhendra Anand , 08 May, 2024

The copper market is experiencing a surge in demand in light of the increasing production of electric vehicles. The surveys conducted in 2024 suggest that the copper market will experience exponential growth by 2035. Artificial intelligence (AI) will play an important role in the copper hike and the demand for electric vehicles in 2024.

The survey reports show that copper demand is expected to surpass 10 million metric tons by the end of 2035. The copper market is soaring high due to the increasing production of electric vehicles in the light of the clean energy transition. The green energy transformation will lead to the set-up of power infrastructure in 2024. Therefore, the copper market sees increasing demand for the metal to power such a transformation process. Copper market conditions suggest that one-third of the copper demand comes from the automotive sector when producing electric vehicles. Experts agreed on the same as they added electricity generation and distribution make up one-third of the copper demand. The growing usage of artificial intelligence in data centers is one primary reason for the hike in copper demand in the market. A significant company that deals with the supply of commodities reports that artificial intelligence alone can lead to one million tonnes per annum of copper demand by the end of 2030.

Investment banks add that the copper market is expected to go through a secular bull market due to the growing decarbonization process. A secular bull market can be explained as a market that helps build forces that affect commodity prices for a long time. However, the prices for coppers may change in the next three years due to fluctuating market conditions. Therefore, increasing copper demand is a good sign, and production should match the market demands.

Copper Market Futures Till April 2024