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
IMPORTANT INFORMATION This document is approved for professional use only.
Communications issued in the UK
The content in this document is issued by HANetf Limited (“HANetf”) and approved by Privium Fund Management (UK) Limited (“Privium”). HANetf is an appointed representative of Privium, which is authorised and regulated by the Financial Conduct Authority. The registered office of Privium is The Shard, 24th Floor, 32 London Bridge Street, London, SE1 9SG
This communication has been prepared for professional investors, but the exchange traded product (“ETCs”) and exchange traded fund (“ETFs”) set out in this communication (“Products”) may be available in some jurisdictions to any investors. Please check with your broker or intermediary that the relevant Product is available in your jurisdiction and suitable for your investment profile.
Disclaimers
Past performance is not a reliable indicator of future performance. The price of the Products may vary and they do not offer a fixed income. This document may contain forward looking statements including statements regarding our belief or current expectations with regards to the performance of certain assets classes. Forward looking statements are subject to certain risks, uncertainties and assumptions. There can be no assurance that such statements will be accurate and actual results could differ materially from those anticipated in such statements. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. The content of this document is for information purposes and for your internal use only, and does not constitute an investment advice, recommendation, investment research or an offer for sale nor a solicitation of an offer to buy any Product or make any investment.
An investment in an exchange traded product is dependent on the performance of the underlying asset class, less costs, but it is not expected to track that performance exactly. The Products involve numerous risks including among others, general market risks relating to underlying adverse price movements in an Index (for ETFs) or underlying asset class and currency, liquidity, operational, legal and regulatory risks. In addition, in relation to Cryptocurrency ETCs, these are highly volatile digital assets and performance is unpredictable.
This material does not constitute a marketing document. It is not an invitation to invest but to be read for educational purposes only. Past performance and forecasts are not reliable indicators of future results.
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.
Canada beyond the headlines: the case for energy, financials, and real estate
August 2026
Beyond a Chatbot: How can emerging-market platforms monetise AI?
July 2026
Lloyd Capital Outlook
Mag 7 to Lag 7: What a tech stumble says about the potential risks of investing in major indices
Natural Gas – growing source of global energy and uncertainty
What is the cost of rebuilding Ukraine?
June 2026
Why are central banks buying what they once sold?
Defence 2.0: How Drones and Cyber are reshaping investments
What investors should consider before investing in Defence ETFs in 2026
The quest for the perfect business
How memory is the AI bottleneck
What does AI mean for cyber defence?
Do drones mean the death of defence primes?
Computing’s next big disruption is already here
May 2026
Why can’t silver supply keep up with demand?
How much will the US military spend on drones?
What does the Iran war mean for travel and North American energy?
April 2026
Navigating geopolitics, energy security and structural demand
Global Instability and the Future of European Energy Security
Canada has what the world needs
March 2026
Ukraine could become the West’s solution for rearmament
Iran crisis – four sectors to keep on your radar
From tanks to code: why the next defence boom will be digital
February 2026
Why cybersecurity and defence may be complementary themes?
Preferred shares and outlook for months ahead
Next stop for global travel
The new nuclear age – why physical uranium matters now
Critical Commodities for 2026
Reconciling responsibility with rearmament
January 2026
The New Age of Tech | Tech Megatrend Outlook 2026
The Future of Emerging Markets: 2026 Market Outlook
Shape of the Markets by PT Asset Management
October 2025
Nuclear Energy – why uranium is back in favour
September 2025
Copper’s less known demand driver: defence
Indo-Pacific Rearmament: How much will defence budgets grow by 2030?
How gold is custodied and why it should matter to investors
Travel in 2025 – strong data drives growth
August 2025
Understanding covered call ETFs
Different approaches to covered call ETFs
The opportunity presented by volatility
Heightened demand for defence in the pacific region
Three drivers of the health care sector in 2025
Equal weighted tech – an interview with Anthony Ginsberg
July 2025
Indo-Pacific Defence: What, Why and How?
Magnificent 8 of India – High-growth tech stocks in India to watch
The nuclear revival – a new dawn for uranium investment
June 2025
ETFs are getting active – is your portfolio ready?
May 2025
Three themes shaping the future of energy and ETFs to access them
Sharpening the Blade: How traders use leveraged and short crypto ETPs
Practical Uses for Leveraged and Short Crypto ETPs
April 2025
Why it is not too late for European defence
Understanding Daily Leveraged and Short ETPs
The basics of the covered call strategy: Potential income and capital growth
March 2025
Tariffs, Tensions and the Uranium Opportunity
What would a US withdrawal from NATO mean for European defence?
Holding case study: Rheinmetall
Holding case study: Bae Systems
Three themes that are reshaping the gold market
February 2025
ETFs Are Gaining Ground Over Mutual Funds
Europe’s sidelining by US prompts defence spending reality check
Will Europe be forced to defend itself alone?
December 2024
Uranium 2025: Opportunities in a Structurally Undersupplied Market
Copper 2025: The Red Metal’s Next Chapter After a Year in the Black
Midstream Energy: Dividend Growth and Natural Gas Demand Drive 2025 Outlook
Emerging Markets 2025: The Rise of Digital and E-Commerce Giants
2025: A Year for Disciplined Investing in an Uncertain World
Health care’s Comeback: Why 2025 Could Revive the Sector’s Vital Signs
Trump and Tech: M&A Revival, Trade Shifts, and the Rise of Automation
Bitcoin’s Year Ahead: Why 2025 Could Be a Halving Hit
Clear skies ahead: is the travel industry poised for takeoff in 2025?
Golden Era: Why 2025 Could Shine Bright for Gold and Miners
Global Equities Under Trump: A New Era of Tariffs, Taxes, and Uncertainty
Europe rearms for a world of greater geopolitical risk
November 2024
US Election 2024: The Stakes for NATO and the Defence Industry
October 2024
Do the Mag 7 have too much influence over the S&P 500?
Investors don’t care enough about recycled gold
The Royal Mint: A Millennium in the Making
Currency Hedged Physical Gold ETCs FAQs
Why would you use an ETF over a mutual fund?
Five companies leading India’s internet boom
September 2024
Can gold shine through the market turbulence
August 2024
Taking a U-turn: the world may be ready to embrace nuclear
June 2024
AI adds to positive natural gas outlook
Copper – the defining metal of a new age
Trump stance will force NATO countries to spend more whether elected or not
May 2024
The great travel industry rebound
ESG Mining – Turning a brown industry greener
ESG and defence investing: a balancing act
Dominant Magnificent 7 could lose ground to broader tech rally
The fall of Russian defence spending, and the rise of NATO
April 2024
The AI Revolution – a commodities play?
Recycled gold and traceability
Why investors should consider defence
Copper’s new supercycle | Fresh highs and the long-term story
Bitcoin in 2024 – a monumental year so far
March 2024
Gold price rallies but miners need to catch up
Investing in India’s rise – what makes India an ideal emerging market?
February 2024
Global instability – three potential ways to hedge
Energy Transition: The Metal Elephant in the Room
January 2024
HANetf’s 2024 Outlook
December 2023
Two Ways to Invest in Low-carbon Gold
March 2023
US ETFs are not the only ETF wrapper with a tax advantage; Irish domiciled ETFs have one too!
Making Gold sustainable with HANetf’s Recycled Gold ETC and ESG Gold Mining ETF
February 2023
Article | There is no Walt Disney Company in crypto yet…
January 2023
Gold Shining in 2023?
HANetf 2022 wrap up and outlook for 2023: Where did the inflows go?
Key Dates for Digital Assets in 2022
Article | The Merge and Ethereum – what you need to know
September 2022
Article | Why small ETFs are not necessarily less liquid
February 2022
Solar Energy 101 | Understanding the Solar Energy UCITS ETF
June 2021
The Royal Mint ESG Credentials
May 2021
Six Things to Know about Investing in a Gold ETC
August 2020
The Royal Mint Physical Gold ETC (RMAU) Frequently Asked Questions
April 2020
The Importance of the Physical Gold ETC Custodian | RMAU
March 2020
Responsible Gold Bars & Physical Redemption | RMAU | The Royal Mint Physical Gold ETC
Select Your Country
Select Your Investor Type
Choose a brokerage
Choose a product
You are now leaving HANetf's website and accessing a third-party website. HANetf may provide access to information, products, or services offered on websites that are owned or operated by other companies ("third-party websites"). We provide this access through the use of hyperlinks that automatically move you from a HANetf website to the third-party site.
While we do our best to provide you with helpful, trustworthy resources, HANetf cannot endorse, approve, or guarantee information, products, services, or recommendations provided at a third-party website. Since we may not always know when information on a linked site changes, HANetf is not responsible for the content or accuracy of any third-party website. HANetf shall not be responsible for any loss or damage of any sort resulting from the use of a link on its websites nor will it be liable for any failure of products or services advertised or provided on these linked sites.
HANetf offers you links on an "as is" basis. When you visit a third-party website by using a link on a HANetf site, you will no longer be protected by the HANetf privacy policy or security practices. The data collection, use, and protection practices of the linked site may differ from the practices of HANetf sites. You should familiarize yourself with the privacy policy and security practices of the linked website. Those are the policies and practices that will apply to your use of the linked website, not the HANetf policies and practices.
Here are some tips to help you tell if you have left a HANetf website:
Important Notice: HANetf is a provider of Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). We do not sell investment products directly to individual investors. Our funds are available through regulated investment platforms and brokers. Our only official website is www.hanetf.com. Any other domain is not affiliated with or authorised by HANetf in any way. If you suspect fraudulent activity, please contact your local financial regulator and/or the police and report the website or individual involved.