Global copper demand is projected to rise 24% by 2035, driven by electric vehicles, renewable power, data centers, and grid modernization, according to a new forecast released Wednesday by consultancy Wood Mackenzie. The report highlights that the world will need about 8.2 million tonnes more refined copper annually, pushing total demand to roughly 42.7 million tonnes per year within a decade.
Wood Mackenzie said in its analysis, “Soaring copper demand an obstacle to future growth,” that the scale of new supply required poses a serious challenge for miners, given that major discoveries and permitting timelines are falling short of projected needs. The firm estimates that to meet this demand, the sector must bring online nearly 8 million tonnes of additional mine capacity and secure another 3.5 million tonnes from recycling and secondary sources by 2035.
The expansion of global electrification is emerging as the primary driver. The consultancy expects copper use in renewables, electric vehicles, and power grids to increase by about 40% over the next decade. Rapid industrial growth in India and Southeast Asia, combined with surging metal consumption in defense manufacturing and AI-linked data center construction, will further tighten the market.
“Energy transition technologies, data infrastructure, and re-industrialization in emerging economies are creating unprecedented pressure on copper supply chains,” Wood Mackenzie said, warning that underinvestment risks “prolonged volatility and persistent deficits” later this decade.
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Benchmark copper prices have already risen more than 20% year-to-date, hovering near $10,200 per tonne, as investors bet on accelerating demand from low-carbon industries. Analysts say that without significant new projects or higher recycling rates, the supply shortfall could become one of the defining constraints on global decarbonization efforts.
By Charles Kennedy for Oilprice.com
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