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Copper demand is set to skyrocket in the coming decades, driven by the clean energy revolution and the rise of electric vehicles. According to the International Monetary Fund, global copper demand is projected to increase by over 66% from 2020 to 2040, reaching 39.1 million tonnes.
This surge in demand is largely due to the essential role copper plays in clean energy technologies. As the world shifts away from oil, renewable energy sources and energy efficiency measures are expected to reduce oil consumption from 101.9 million barrels per day in 2023 to 66 million barrels per day by 2040.
In contrast, the demand for copper is expected to continue rising, with a single electric vehicle containing four times more copper than a traditional combustion engine vehicle. This is due to the metal’s unique properties and its use in various industries, including construction, infrastructure, and defense.
The growing adoption of electric vehicles is a major driver of copper demand. On average, a standard EV contains 60-83 kg of copper, highlighting the metal’s crucial role in the production of these vehicles. This trend is expected to continue as countries around the world set ambitious targets to reduce carbon emissions and promote the use of clean energy.
The rise in copper demand is also expected to have a significant impact on the global market. As the world’s largest producer of copper, this presents a significant opportunity for countries like Chile, Peru, and China, which are major exporters of the metal.
In conclusion, the clean energy revolution and the shift towards electric vehicles are set to make copper the new oil. With its crucial role in various industries and the growing demand for renewable energy, copper is poised to play a significant role in shaping the future of energy.