Global copper shortage: how demand from AI and renewable energy is reshaping the market

Against the backdrop of the rapid development of artificial intelligence and green energy, the global mining industry is facing an unprecedented challenge. Industry experts predict a critical shortage of copper in the coming years, which could complicate global plans for electrification and energy transition.

Unprecedented Production Requires Structural Changes

Experts emphasize the scale of the problem: over the next 18 years, it will be necessary to extract as much copper ore as has been mined throughout the entire 10-thousand-year history of mankind. Robert Friedland, a recognized leader in the mineral industry, warns that the current capacity of the mining sector is completely insufficient to meet this challenge. The rate of increase in production lags behind the growing needs of the economy.

Exponential growth in demand creates critical challenges

The main drivers of demand for copper are revolutionary sectors: the production of chips for AI systems requires more and more copper components, and renewable energy infrastructure (solar panels, wind turbines, storage systems) is impossible without this metal. This synergistic effect creates unprecedented tension in the market.

Why Mining Investment Is Lagging Behind

The development of new deposits requires huge capital investments, long payback periods and faces increased environmental supervision. The result: mining companies are unable to expand capacity at the pace needed to meet demand. The impending shortage of copper will be one of the main limiting factors for the industrialization and electrification of emerging economies.

Prospects for market stabilization

Overcoming the crisis will require coordinated efforts: redesigning supply chains, investing in the mining sector, and switching to more efficient copper technologies. Without these measures, the shortage of the metal will only worsen.