The United Nations has issued a warning regarding a potential copper shortage, stating that it poses a significant risk to the global transition towards clean energy and advanced technologies. According to UNCTAD, copper has become a ‘new strategic raw material’ crucial for the rapidly electrifying and digitizing global economy. Demand is projected to rise by over 40% by 2040, placing significant strain on the existing supply. This shortage could create bottlenecks for critical technologies, including electric vehicles, solar panels, AI infrastructure, and smart grids.
Addressing this impending shortage requires substantial investment, estimated at around $390 billion, and the development of at least 80 new mining projects by 2030. However, the process of developing new mines is lengthy and costly, often taking up to 25 years from discovery to operation. Currently, copper reserves are heavily concentrated in just five countries: Chile, Australia, Peru, the Democratic Republic of the Congo, and Russia, which collectively control over half of the world’s known reserves. China dominates refined copper production, importing 60% of global copper ore and producing over 45% of the world’s refined copper. The UNCTAD report emphasizes that developing countries need to move beyond simply extracting and shipping copper, and instead invest in refining, processing, and manufacturing to fully benefit from their resources.
