Wed Sep 25 03:30:00 UTC 2024: ## Copper Demand to Soar as Energy Transition and Data Centers Drive Growth: BHP
**Sydney, Australia** – The global demand for copper is set to skyrocket in the coming decades, driven by the energy transition towards renewable energy sources and the rapid expansion of data centers, according to BHP, a leading Australian multinational mining and metals company.
BHP’s latest Energy and Commodity Outlook highlights electric vehicles (EVs) as a major driver of copper demand, with EVs requiring three times more copper than traditional internal combustion engine vehicles. By 2040, the transport sector is expected to account for over 20% of global copper demand, up from the current 11%.
The report further emphasizes the increasing copper demand in the renewable energy sector. Offshore wind, onshore wind, and solar power generation projects require significantly more copper than traditional coal-fired power plants.
Data centers, which rely heavily on copper for power and cooling systems, are also expected to contribute significantly to the growth in copper demand. BHP estimates that demand from this sector could increase six-fold by 2050.
These projections align with the World Bank’s commodity outlook, which predicts a steady increase in copper demand driven by energy transition technologies.
While the supply of copper is expected to rise modestly in the coming years, research agency BMI predicts that the market will remain in deficit due to the accelerating green transition and the increasing demand for “green” metals.
Despite some potential surpluses in 2024 and 2025, BHP expects these to be quickly absorbed as demand outpaces supply towards the end of the decade.
While recycled copper will play an important role in meeting the growing demand, BHP acknowledges the challenges in expanding primary mine supply. The company estimates that the world requires an additional 10 million tonnes of copper per annum over the next decade, requiring significant investment in the mining sector.
The Australian Office of the Chief Economist anticipates that new US investment in manufacturing capacity, particularly in clean energy and EV-related industries, will further accelerate copper consumption in the coming years.
Overall, the outlook for copper is extremely positive, with the energy transition and the data center boom expected to drive significant demand growth for the foreseeable future.
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