The International Energy Agency predicts a significant copper deficit in the next decade due to rising demand. Without increased global mining, a 30% shortfall is expected. New copper powers are emerging to counter China’s dominance, with new mining projects underway. Demand is driven by energy transition and AI development, posing challenges for the sector.

The global refined copper market is projected to face a 150,000 metric ton deficit in 2026, as production growth slows. Copper is crucial for various applications including electrical wiring, renewable energy, and industrial machinery. The market value is set to rise from $9.24 billion in 2024 to $13.93 billion by 2035, growing at a 3.8% CAGR.

China’s dominance in copper production raises concerns about global supply chains. The country contributes over half of global refined copper production, with output set to reach record highs. The global copper shortage began in late 2023 due to mine closures and smelting capacity expansion, leading to reduced profitability for smelters.

To strengthen copper supply chains, countries are investing in mining and refining. Ivanhoe Mines launched Africa’s largest copper smelter in the Democratic Republic of Congo, aiming to set a new global standard. Canada is also ramping up copper operations, with projects in British Columbia and national output set to increase before 2030.

Growing copper deficits and China’s market dominance pose challenges for global supply chains. The need for new large-scale mines is crucial to meet increasing demand for copper, essential for renewable energy technologies. Without intervention, the copper deficit could hinder the deployment of new renewable energy capacity worldwide.

Read more at Yahoo Finance: A Global Copper Crunch Is Looming