The demand for copper is set to skyrocket in the next three decades, according to experts in the industry. Matt Watson, founder of Precious Metals Commodity Management LLC, discussed the staggering amount of copper that will be needed for electrification purposes on a recent episode of Green Rush with Bart Melek, global head of commodity strategy at TD Securities.
In a base-case emissions scenario, copper demand is projected to reach over 50 million tonnes a year by 2050. This means that roughly double the amount of copper that has been mined historically will need to be extracted in the next thirty years. The transition to a net-zero economy and global electrification simply cannot happen without metals like copper, according to Melek.
Not only will the demand for copper increase in electric vehicles and renewable energy systems, but it will also be needed for artificial intelligence, smart grids, and renewable energy storage. Both Watson and Melek agreed that copper is a more stable market compared to lithium, which has experienced price fluctuations.
Despite the positive demand factors for copper this year, such as increased Chinese economic growth and supply-side disruptions, there could still be deficits of 300 to half a million tonnes. The Green Rush podcast aims to explore the critical role of metals like nickel, copper, and lithium in our new electrified world.
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