Copper prices have been on the rise. But, why?
What’s happening:
- The price of copper has been surging recently amidst an influx of new demand caused by the global energy transition and a looming supply shortage
Why it matters:
- Copper plays a vital role in decarbonzation technologies such as electric vehicles, renewable energy systems and new electric grid infrastructure
- Because copper has high electrical conductivity and thermal efficiency, it also is a critical input for solar panel manufacturing and wind farms
By the numbers:
- Copper prices are nearing an all time high, trading at approximately $4.86 USD per pound
- Due to the rapid acceleration of energy transition infrastructure being built, global copper production likely needs to double to 50 million metric tons within the next 10 years
Going deeper:
- Finding more copper deposits in the United States has become increasingly more important, with mining giant BHP (NYSE: BHP) and Ivanhoe Electric (NYSE: IE) recently striking a new joint venture collaboration to find new copper discovers in Utah, Arizona and New Mexico
- Bill Gate’s backed KoBold Metals previously announced a partnership with Midnight Sun Mining (TSXV: MMA) to leverage artificial intelligence and machine learning technology to find new copper discoveries in Zambia
The intrigue:
- Copper is also essential for data centre infrastructure, which has been experiencing an enormous boom due to the rise of venture backed artificial intelligence startups
