Global copper supplies won’t keep up with demand: report

, Washington D.C. Correspondent
Source: International Energy Agency, Global Critical Minerals Outlook 2025 • Projected copper supplies are from existing and announced projects.

Global copper supplies will fall short of what the world needs to keep up with electricity demand growth over the next decade, according to the International Energy Agency’s latest outlook for critical minerals.

Copper is a ubiquitous material in electronics of all types, including for clean energy.

Demand for the metal is surging because it is a key component in electric vehicles, renewable energy technologies like wind turbines and solar panels and electricity transmission lines. The rapid expansion of the electricity grid network in China was the single largest driver of demand growth for copper over the past two years, according to IEA.

“Despite strong copper demand from electrification … the current mine project pipeline points to a potential 30% supply shortfall by 2035 due to declining ore grades, rising capital costs, limited resource discoveries and long lead times,” the report found.

In short, IEA says more — and higher quality — copper reserves must be found and developed. The agency also urges increasing the pace of electronics recycling.

Copper mines on average are larger than mines for other minerals, requiring more time, capital and infrastructure to develop. Copper mining is also lagging because of growing social and environmental opposition, owing to the heavy water usage of the mines, especially in areas prone to water security.

For example, a copper mine in Arizona was delayed for at least five years due to efforts by a Native American tribe to block its development. This week, the United States Supreme Court refused to hear the case, allowing the mine to proceed. 

Water shortages and flooding — which are exacerbated by climate change, overdevelopment and overconsumption — pose a serious risk to 7% of global copper supplies by 2030, or nearly two million metric tons, the IEA warned.

Ironically, the region IEA has identified as most at risk from both floods and droughts — Central and South America — is also one that is drawing the most investments: it drew $60 billion in greenfield mining, or exploration of new mines (largely copper mines) in 2024, IEA said.