Copper: The Hidden Engine of the AI and Energy Revolution
While much attention in markets has been on AI chips, rare earths, and semiconductors, copper is quietly emerging as the pivotal metal fueling a structural revolution tied to AI and clean energy. Nicknamed "Dr. Copper" for its historical role in reflecting global economic health, copper is now central to the energy transition, AI infrastructure development, and clean technology expansion.
According to Wood Mackenzie, copper demand is expected to surge by 24% by 2035. This growth is largely driven by the rise of electric vehicles and their charging networks, renewable power grids, AI data centers with extensive electrical needs, as well as increased defense and industrial spending. Meeting this surge requires massive investment—around $210 billion—and a significant ramp-up in mining capacity that won’t be easy to achieve.
Geopolitically, Western hesitation is opening doors for investors from China, Russia, and the Middle East to back mining projects across Africa, Asia, and Latin America. This shift is realigning the supply landscape, boosting emerging economies’ influence in global industrial and energy infrastructure markets.
For investors focused on AI and electrification, copper represents a foundational commodity often overlooked amidst the hype around tech stocks. Every AI data center and electric vehicle depends on copper wiring and components, making copper essential for powering the technologies driving the future economy.
Copper prices have already risen about 19% in 2025, with analysts forecasting further gains possibly pushing prices above $6 per pound if supply struggles to keep pace with growing demand. Key investment opportunities include major producers like Freeport-McMoRan, Southern Copper, Teck Resources, Rio Tinto, and diversified exposure through the Global X Copper Miners ETF, which is up 55% year-to-date.
In summary, copper is not just a metal but the backbone of AI and electrification trends shaping the next decade. For investors, understanding and positioning around copper supply and demand dynamics offers a compelling chance to benefit from this transformative structural supercycle.
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