Historically, copper’s applications in construction, transport, and industry meant that ‘Doctor Copper’ was a strong barometer of overall economic health, closely tied to other industrial materials like iron and oil.[1] Now, copper is decoupling from its traditional partners.
Copper is increasingly being recognised as a national security and energy security imperative. In 2025 the US government invoked Section 232 of the Trade Expansion Act – the same national security authority used to justify steel and aluminium tariffs – to investigate the national security threat posed by potential shortages of copper imports, and reliance on foreign suppliers.[2]
The reasoning behind this shift in approach is relatively simple. The growth of new technologies like AI, electric vehicles (EVs), and electrical grid upgrades all rely on copper intensive products. There are currently more than 800 data centres slated for construction in the US alone, with that number likely to increase if demand for AI continues to rise.[3] EVs require 3 to 4 times more copper than their combustion engine counterparts.[4] As Sprott Asset Management has noted, copper is breaking away from its old correlation with oil and iron; instead being repriced as essential for the digital economy and energy transition.
Beyond headline technologies, the global rise in living standards is placing additional pressure on copper stores. Washing machines, air conditioning units, and other ‘white goods’ are becoming more standard across the developing world. Revenue in the household appliances market amounts to $735bn in 2026, and is expected to grow annually by 4.66% (CAGR 2026-2031).[5]
What makes the next quarter century unique, is that copper demand from electrification, decarbonisation, and digitalisation may occur across high, middle, and low-income economies simultaneously.[6] Unlike the 20th century – when developed countries electrified their homes and factories decades before emerging markets – the adoption of EVs, renewable energy, and data centres is occurring concurrently, which is unprecedented.
Current inventory and demand statistics suggest a confirmation of this idea. From 1900-2022, global copper consumption doubled roughly every 25 years. However, from 2023-2050, annual copper consumption is forecast to be greater than all the copper consumed across the entire 122-year period prior.[7] Compounding this potential issue, S&P Global suggest that copper could face a 30% supply deficit by 2035.[8]
Firstly, the ‘easy’ deposits have largely been identified. The rich, shallow deposits that powered the 20th century’s copper supply are largely exhausted. New discoveries are increasingly found in geopolitically volatile locations, such as the Democratic Republic of Congo. While these deposits can boast ore grades exceeding 2.5% – more than 4 times the global average and 11 times that of the largest operating copper mine in the US,[9] the instability of the country means that supply cannot be guaranteed deterring longer term investment. Meanwhile in Chile, two of the premier open pit copper mines have deposits at altitudes above 15,000 ft,[10] requiring costly and demanding extraction methods.
Secondly, new deposits are also becoming slower to develop – lead times have surged to 28 years, nearly 5 times longer than in the 1990s, with an average of over 17 years elapsing between discovery and first production.[11] Even if price signals continue to remain strong for copper, this investor interest cannot cut lead times for new production meaningfully, suggesting that while copper may remain crucial to new and existing technologies, new mines may struggle to offset supply constraints.
Source: S&P Global. As of 11.04.2026. For illustrative purposes only.
The real price of copper today – while near historic highs in nominal terms – remains meaningfully below the inflation adjusted peaks reached during the commodity Supercycle of the early 2000s. The all-time inflation-adjusted high sits above $14,800 per tonne; the current real time price sits over $13,700/ tonne.[12] [13] This disparity suggests that copper has further room to progress based on historical trends.
Crucially, the price of copper is holding around historic highs ($6.47/ lbs vs highs of $6.49/ lbs) despite current macro headwinds – a sign of structural demand rather than cyclical peaks.[14] The old name of ‘Dr Copper’ appears to be dying, those that can secure existing supply and capitalise on miners attempting to extract new deposits could stand to benefit as copper remains critical to the build out of AI, energy transition, and rising global living standards.
[1] https://sprott.com/insights/beyond-dr-copper-copper-s-strategic-shift/
[2] https://www.whitehouse.gov/presidential-actions/2025/02/addressing-the-threat-to-nationalsecurity-from-imports-of-copper/
[3] https://www.theguardian.com/us-news/2026/jun/08/datacenter-ai-drought-water
[4] https://www.google.com/search?q=how+much+more+copper+does+an+ev+use&rlz=1C1GCEA_enGB1211GB1211&oq=how+much+more+copper+does+an+ev+use+&gs_lcrp=EgZjaHJvbWUyCQgAEEUYORifBTIHCAEQIRigATIHCAIQIRigATIHCAMQIRigATIHCAQQIRigATIHCAUQIRifBTIHCAYQIRifBTIHCAcQIRifBTIHCAgQIRiPAjIHCAkQIRiPAtIBCTEyMTQ3ajBqNKgCALACAA&sourceid=chrome&ie=UTF-8
[5] https://www.statista.com/outlook/cmo/household-appliances/worldwide/#revenue
[6] https://www.bhp.com/news/bhp-insights/2024/09/how-copper-will-shape-our-future
[7] https://freeportresources.com/investors/copper/copper-demand/
[8] https://www.spglobal.com/energy/en/news-research/latest-news/metals/120125-copper-faces-30-supply-deficit-by-2035-iea-warns-at-uk-summit
[9] https://www.csis.org/analysis/building-critical-minerals-cooperation-between-united-states-and-democratic-republic-congo
[10] https://www.mesabi.com/nothing-better-for-the-job-mesabi-radiators-in-chile-and-peru-mining-operations/
[11] https://www.spglobal.com/market-intelligence/en/news-insights/research/from-6years-to-18years-the-increasing-trend-of-mine-lead-times
[12] https://www.lme.com/metals/non-ferrous/lme-copper#Overview
[13] https://www.gurufocus.com/economic_indicators/4553/inflation-adjusted-price-of-copper
[14] https://tradingeconomics.com/commodity/copper
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Copper is increasingly viewed as a strategic asset because it is essential to electrification, digital infrastructure, electric vehicles, AI data centres and grid upgrades. Its role has expanded beyond traditional industrial uses, making it important for energy security, national security and the global technology buildout.
Copper supply is constrained by declining ore quality, fewer easy-to-access deposits, higher extraction costs and long development timelines for new mines. Even when demand and prices rise, bringing new copper supply online can take many years, limiting how quickly the market can respond.
AI increases copper demand through the construction of data centres and supporting electricity infrastructure. Data centres require significant power capacity, cabling, cooling systems and grid connections, all of which can increase the need for copper.
Higher copper demand could increase interest in companies involved in copper production, exploration and mining infrastructure. However, copper remains a cyclical commodity, and investors should consider risks such as price volatility, project delays, political risk and changes in global economic activity.
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