Net-Zero Goals to Drive Copper Demand in Future

By Shubhendra Anand , 12 February, 2025

Copper Marrket Insights

Copper is an essential element in the energy sector. Its demand is growing significantly due to the clean energy transition in 2024. A survey conducted in 2024 shows that net-zero targets are driving the copper demand in the energy sector. Copper is widely used in industrial and manufacturing applications. The primary manufacturing market that copper influences is electric vehicles. Further, artificial intelligence's use drives the copper demand in the industry.

Copper's demand is growing globally, and the clean energy transition drives it heavily. The survey claims that the demand for copper worldwide is anticipated to increase by 40 percent. Net-zero ambitions can lead copper demand to double by the end of 2035. It is expected that copper will witness such an increase by the end of 2040. Experts cite green tech development as being entirely responsible for the rapid adoption of copper in the energy sector. However, the biggest problem lies with the extraction of copper. Although there is a large availability of copper reserves globally, the extraction of copper is slower. Further, the consumption of copper is increasing significantly due to industrial uses. Experts explain that less extraction compared to the demands of copper in the energy sector can lead to copper shortages.

Several factors fueling the global copper demand, such as sustainability and renewable energy generation, dominate majorly. Further, another survey reveals that fast-paced electric vehicle production may create significant problems for the copper sector. This is because copper production lags behind the exponential growth of electric vehicle production. A study shows that there will be a gap between the supply of copper and EV production till 2060. This indicates that net-zero targets require a minimum of 194 mines and six new mines yearly for copper extraction. However, extraction would not hinder energy transition if copper mining continues its recycling process at a consistent rate. Further, the recycling process can meet the industrial demands for copper.