Global Copper Deficit And Its Impact On Net-Zero Goals

A looming copper shortage threatens net zero ambitions as copper is a vital commodity needed for green energy transition projects such as wind and solar equipment, power lines, electric vehicles, and their charging infrastructures. Major supply chain disruptions such as COVID-19, geopolitics, inflation, and more have threatened the supply of copper. With potential resources exhausted at existing copper mines coupled with longer lead times for new copper mines, copper production has failed to keep pace. An increase in demand followed by production disruptions has resulted in higher copper prices. As Copper is the essential metal in energy transition, the question on everyone’s mind is: will the 2050 climate objective be achievable?