Copper prices are set to soar as demand for the metal intensifies as more and more countries press on with plans to turn their economies greener with focus on electric vehicles (EVs) and clean energy.
With China, the world’s biggest automotive market, joining other major economies like the European Union in the push for more electric transportation, it looks like copper is on the verge of a super-cycle.
China and Europe together will represent 72% of all passenger EV sales by 2030, driven by carbon emission regulations in Europe and China’s EV credit system fuel economy regulations and city policies limiting new internal combustion vehicle sales.
While copper has been used in vehicles for decades, EVs use three times more copper than current non-EVs.
Green industries
In addition, the demand for renewable energy is contributing to pressure on copper prices.
head of commodities research Jeff Currie said: “We have all the tell-tale signs of a super-cycle.”
And he is not alone. Other analysts are also highlighting the impact of economic stimulus programs instituted by governments following the COVID-19 pandemic, which in turn is boosting demand for copper as well as other metals. Hey