EVs, Cloud Services, and AI Will More than Double Demand for Copper by 2035
Domestic consumption of copper currently stands at 1.5 million metric tons per year. U.S. mining accounted for 1.3 million tons.
Old (post-consumer) scrap, converted to refined metal, alloys, and other forms, provided an estimated 160,000 tons of copper in 2022, and an estimated 670,000 tons of copper was recovered from new (manufacturing) scrap derived from fabricating operations.
“Of the total copper recovered from scrap, brass and wire-rod mills accounted for approximately 85%; smelters, refiners, and ingot makers, 10%; and chemical plants, foundries, and miscellaneous manufacturers, 5%. Copper recovered from scrap contributed 32% of the U.S. copper supply. (Source for all data: USGS – see link below).
Although the U.S. has enough copper reserves and resources to meet current demand, geopolitical and logistical risks can disrupt copper supply – for example, a disruption to a key route, such as the Panama Canal, could wreak havoc. Currently, the U.S. imports 44% of its refined copper, according to Recycling Today.
As discussed in “Spotlight on Copper,” a 2023 ISRI (now ReMA) moderated panel discussion, in order to meet copper demand, the U.S. must retain its copper scrap versus exporting it. (See our 2023 write up of the discussion.)
That was then, this is now. According to projections in an August 2024 S&P Global report, U.S. copper demand is expected to more than double – to 3.5 million metric tons – by 2035. This demand represents a 112% increase or a compounded annual growth rate of 6.5%.