What happened
AI and green energy expansion increased copper demand, driven by data centre construction doubling, requiring 400,000 metric tons annually over the next decade, peaking at 572,000 tons by 2028, and cumulative usage exceeding 4.3 million tons by 2035. This demand, projected to reach 3 million tonnes annually by 2050, faces constrained supply and long mine development timelines, transforming copper into a critical component from a cyclical industrial metal.
Why it matters
The escalating demand for copper, coupled with constrained supply and long development timelines, introduces a significant operational constraint for procurement and supply chain teams, increasing exposure to price volatility and potential material shortages. This necessitates heightened due diligence in long-term resource planning and financial forecasting to mitigate supply chain risks for critical infrastructure projects.
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