S&P Global released a report Thursday forecasting a 50% increase in global copper demand by 2040. The rapid growth of the artificial intelligence, defense, and robotics sectors fuels this projection.
The consultancy projects annual demand will reach 42 million metric tons (MT). This marks a substantial rise from the 28 million MT expected in 2025.
The report warns that global supplies could fall short of this demand by more than 10 million MT annually. This deficit will occur without a significant increase in mining and recycling efforts.
This surge is part of a broader global electrification trend. S&P Global identifies the build-out of new data centers as a major contributor to the increased demand, noting copper is essential for its electrical conductivity.