Yes. We need more copper if we are to meet the 2050 climate goals.
- A new report by S&P Global shows that we’re unlikely to meet our 2050 climate goals because we don’t have enough copper, and copper supply is not coming online quickly enough.
- Global demand for copper is expected to more than double by 2050.
- There won’t be enough supply to meet our net-zero goals, unless the price of copper goes much higher, the report shows.
- Copper is needed across many industries but electric vehicles is where copper demand stands out. EVs use roughly twice as much copper (or more, on some occassions) as ICE vehicles.
- What’s curious is that the countries that are expected to need the most copper are the countries that oppose copper mining the hardest, and are trying to export “dirty” business to – what they think to be – “lesser” countries. However, “lesser” countries are not having it and are blocking copper mines left and right.
- Already developed and very important projects – like Barrick’s Pascua Lama – are being shut down as we speak.
- Where does this end? In a much higher copper price between now and 2050, which will stimulate more investments in copper exploration and development, as well as make copper recycling more attractive. Could copper fall amid recession fears? Sure, and it likely will. However, over the next few decades, copper is very unlikely to stay under the current levels, copper experts tell me.
- Although the report was sponsored by the copper miners and should be vieweed as biased, some things are obvious; we haven’t invested enough money in copper exploration over the last 10 years, and we’ll soon pay the price.