Copper: the essential metal in the energy transition and its growing global demand.

The importance of copper in the global economy and its fundamental role in the energy transition are generating renewed interest in this metal, known since ancient times, but now at the center of a technological and sustainable revolution. Since the 1960s, copper has been a key component in the expansion of the electronics industry and in the electrification of the world, a process that has accelerated in recent years. This metal, with its extraordinary conductivity and resistance properties, is essential in the manufacturing of devices ranging from mobile phones to household appliances and medical equipment. The growing demand for electricity, which is projected to rise from the current 20% to 51% by mid-century, is driving the need for copper across multiple sectors. According to the International Copper Association, an electric vehicle uses three to four times more copper than one with an internal combustion engine, highlighting the metal's importance in the transition to cleaner energy sources. Renewable technologies require four to twelve times more copper than fossil fuel-based power plants, making copper a critical resource for achieving the climate goals set out in the Paris Agreement. However, global demand for copper is projected to reach astronomical figures: it is estimated that 28 million metric tons will be consumed this year, with this figure expected to exceed 31 million by 2030, potentially reaching 50 million by mid-century. This increase in demand poses the challenge of ensuring an adequate supply, as copper production faces increasingly significant difficulties. The scarcity of new deposits and rising extraction costs have made the future supply of copper uncertain. According to S&P Global, the gap between copper supply and demand could turn into an imminent crisis, with a deficit that could reach 10 million metric tons by 2035. While some analysts warn of a possible shortage, others argue that the solution may lie in increased production in Latin America, where 40% of global production is concentrated. However, extracting copper from mines is becoming increasingly complicated, as ore deposits are found at greater depths and are therefore more expensive to exploit. Copper recycling also plays an important role in the supply. It is estimated that around 32% of global demand is met through recycled materials. Nevertheless, recycling alone is not enough to cover the growing demand, and enormous investments in mining will be required to ensure a steady supply in the future. It is estimated that approximately $300 billion in investments will be needed over the next decade for the exploitation of new deposits and for copper recycling. The necessary investments are not progressing at the same pace as demand. Currently, only 40% of the required capital has been approved, posing a challenge for the copper industry. Although a sufficient amount of resources has been identified on the planet, production cannot keep up with demand in the short and medium term, which could negatively impact decarbonization goals. Amid this tension between supply and demand, copper prices have reached record levels. In May of this year, the price of copper soared to nearly $11,000 per ton, driven by reduced supply and increasing demand, particularly from China, which is a major global consumer of copper. Inventories in the country have increased, confusing analysts about the health of the global economy, as this metal is often seen as an indicator of economic activity. The role of copper in the transition to a greener and more digital future is undeniable. However, the path to sustainability is fraught with challenges. Copper production is becoming increasingly complicated and costly, and the time required to bring new deposits from discovery to production has significantly increased over the past decade. This increase in development time makes it even more difficult to meet the growing demand, which could destabilize supply chains at a critical moment for the global economy. As can be seen, copper has become an essential element in the modern economy. With its importance in renewable technologies, electrification, and digitalization, it is crucial that the industry focuses on ensuring a sustainable and sufficient supply for the future. Meanwhile, the world is turning towards a new "Copper Age," marked not only by the growing demand for this metal but also by the need for a responsible and sustainable approach to its extraction and use. As nations seek to meet their climate goals and move towards sustainability, "Doctor Copper" emerges as a key player in the quest for a brighter and more sustainable future.