The copper shortage threatens global energy transition plans

The extractive industry faces one of its greatest challenges in modern history: meeting a rapidly growing demand for copper driven by artificial intelligence and the expansion of renewable energy sources. The sector’s warning is clear: the next 18 years will require copper production equivalent to all of mining history over the past 10,000 years.

Exponential demand drives pressure on supplies

According to NS3.AI analysis, mining magnate Robert Friedland has emphasized that copper shortages are not a hypothetical scenario but an imminent reality. The proliferation of data centers, AI systems, and clean energy generation infrastructure require massive amounts of this strategic metal. Copper cables are essential in electricity transmission, transformers, and electric vehicle charging systems. This convergence of emerging technologies has created a perfect storm for limited natural resources.

The copper supercycle will redefine electrification

The potential copper shortage could lead to a supercycle for this metal, resulting in a prolonged period of high prices and limited availability. This phenomenon would have direct consequences on the accelerated industrialization efforts undertaken by several countries. Global electrification, a pillar of the transition toward sustainable economies, critically depends on the availability of copper at accessible prices.

Implications for global transformation

Copper scarcity is not just a mining challenge but a threat to planetary decarbonization goals. Governments and technology companies face a crossroads: invest in new mines, develop substitutes, or rethink the pace of digital and energy transformation. Without resolving this resource bottleneck, the vision of a fully electrified world could be compromised.