- Copper is the dominant conductor in electrical applications and is used in roughly every electrification step.
- Electric vehicles, renewables, grid expansion, and data centers all use significantly more copper than their predecessors.
- Major forecasters project copper demand to rise materially over the next decade if energy transition goals are pursued.
Why copper is central to the energy transition
Copper has the second-highest electrical conductivity of any element, behind only silver, but is far cheaper and more abundant. That makes copper the default conductor for power generation, transmission, distribution, and consumption. Almost every component of the energy transition is more copper-intensive than the legacy equivalent.
Electric vehicles
A battery electric vehicle uses several times more copper than an internal combustion engine vehicle. The increase comes from the battery pack wiring, the motor, and the on-board electronics. Plug-in hybrids fall in between.
Renewable power generation
Solar photovoltaic and onshore and offshore wind installations all use more copper per megawatt than natural gas or coal generation. Offshore wind is particularly copper-intensive because of long submarine cables.
Grid build-out and storage
Connecting renewable generation to load centers requires significant new transmission and distribution capacity. Battery energy storage systems also use copper for current collection and connection to the grid. Together these grid build-outs are a large source of incremental copper demand.
Supply side response
New copper supply is constrained by long permitting timelines, declining ore grades at existing mines, and rising capital intensity. Projects that begin permitting today often will not produce first metal for a decade or more, which is why the energy transition demand outlook tightens supply expectations.
Frequently asked questions
Demand math summarized from public-domain analysis by the International Energy Agency, the International Copper Study Group, and major mining company investor materials.