Copper doesn’t get the hype of gold or the headlines of oil but right now it is sitting at the centre of several long-term structural trends. Rising electricity use, infrastructure spending, electrification, the green energy transition, and the rapid expansion of AI-driven data centres are all pushing demand higher. In this article, we’ll explore why copper demand is surging and how you can invest.
1. Electrification of everything
Copper is one of the most efficient conductors of electricity, making it a critical input in wiring, motors, transformers, and power systems. As economies transition from fossil fuels to electricity, demand for copper rises across transport, industry, and power infrastructure.
Examples:
- Electric vehicles use 3–4x more copper than petrol-powered cars due to batteries, motors, inverters, and extensive wiring
- Charging infrastructure, including fast chargers, power cables, transformers, and substations are highly copper-intensive
- Electricity grid upgrades and expansion to accommodate higher loads further increase copper demand
2. Artificial Intelligence & Data Centres
The boost in AI demand has been a major contributing factor to the growth of copper demand. AI is extremely energy-hungry, training AI models and running data centres requires massive amounts of power and that power has to be moved efficiently.
That means more copper in:
- Data centre wiring
- Power grids
- Cooling systems
- Backup energy infrastructure
3. The Green Energy Revolution
The green energy revolution has also been pushing up demand for copper. As countries push toward net-zero targets, copper demand keeps climbing.
Solar panels, wind turbines, and energy storage systems are all copper-intensive.
For example:
- Wind turbines use copper in generators and cabling
- Solar farms need copper to connect panels to the grid
- Batteries and storage systems rely on copper wiring
4. Limited New Supply
While demand is rising fast, new copper mines take 10 – 15 years to develop. Grades are falling, costs are rising, and supply growth is slow.
So you have:
- Strong, structural demand
- Slow, constrained supply
This imbalance will push copper demand and prices higher over time.
In Summary
Copper is in high demand because the world is becoming:
- More electric (EVs, heat pumps, grid upgrades)
- More digital (AI, data centres)
- More renewable (wind, solar, storage)
And copper is one of the key material that makes all of that possible.
The Investment Opportunities
To find the best investment opportunities, we first need to determine who benefits the most from a rise in copper prices and the answer is copper producers. The stock market is one of the greatest tools for wealth creation because you don’t have to go out and become a copper producer yourself, you can simply buy (invest) in mining companies.
1. Copper Producers
Mining companies that extract copper stand to benefit directly from higher demand and potentially, higher prices. Large, established producers often have diversified operations and scale advantages, while smaller miners may offer higher growth potential if new projects come online successfully. The key for investors is focusing on companies with strong balance sheets, reliable production, and low extraction costs.
2. Copper Streaming & Royalty Companies
An alternative way to invest in copper is through streaming and royalty businesses. These companies provide financing to miners in exchange for a share of future production or revenues. This model can offer exposure to rising copper prices while reducing some of the operational risks associated with running a mine.
Here are 4 Copper mining stocks I am closely watching:
The price action on Copper mining stocks is already showing that this idea is ready for execution.
1. ERO: ERO Copper Corp
2. FCX: Freeport-McMoRan, Inc
3. HBM: Hudbay Minerals Inc
4. SCCO: Southern Copper Corporation
A good point of entry will be when the price pulls back to the 50 day moving average (grey line) and finds buyers. I hope you have found this article useful, check out my new YouTube channel for more content and explainer videos.
– Adonis
Disclaimer: The information contained in this article is purely educational and does not constitute as investment advice. Any commentary provided is the personal opinion and philosophy of the author. It is not intended nor should be considered as invitation or inducement to buy or sell any securities noted within. Investing and trading carry significant risk, please contact a financial professional before making any investment decisions.
