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1) According to a report done by the Department of Industry, Science, Energy and Resources of the Government of Australia (DISER), the transition to a green energy economy will greatly impact the copper consumption in the future. This is yet another government or entity calling for a demand spike in copper when the need to transition is marketed by the world. DISER said that copper's conductivity, malleability and durability are key characteristics that make it a vital ingredient in electric vehicles and its chargers, and renewable energy generation noting that 10% of refined copper will be used in EVs and its infrastructure. According to DISER, the global copper consumption is expected to grow at an average rate of 2.7% per year, reaching over 30 million tons in 2028. On the supply side, copper production growth is expected to average 2.0% per year with 24 million tons produced in 2028. "Challenges facing mine operators include declining ore grades, higher production costs, aging facilities and increased environmental and social scrutiny. Declines in the quality of deposits will also mean that most new projects in the development pipeline lack the scale and cost advantages of existing mega projects," the authors of the report found.
Source: Copper demand will outpace supply from 2026 due to global energy transition - report | Kitco News
2) Citigroup says that the copper market could see an "unprecedented" inflow of capital from investors in the next coming years as the deficit in copper supply could fuel in the surge of value for the metal. Max Layton, Citigroup's managing director said that this is an ideal time to buy as the price of copper is still low on global recession concerns. Mr. Layton said that copper could top out at $15,000 a ton by 2025 and could "make oil's 2008 bull run look like child's play." Copper currently is trading at $8,300 a ton and topped out at $11,300 back in 2021.