Copper Prices Set to Surge by as Much as 75 Percent Thanks to the Ongoing Green Energy Revolution

Copper prices are set to rise by more than 75% over the next two years amid supply disruptions in the mining industry and higher demand for the metal driven by the push for renewable energy.

According to a report by BMI, the research arm of Fitch Solutions, rising demand driven by the shift to green energy and the expected mild depreciation of the U.S. Dollar in 2H 2024 will drive copper prices higher.

Markets are hoping that the U.S. Federal Reserve will cut rates this year, which will weaken the dollar and, in turn, make copper priced in US dollars more attractive to foreign buyers.

At the recent COP28 climate change conference, more than 60 countries backed a plan to triple global renewable energy capacity by 2030, which, according to Citibank, “would be extremely optimistic for copper.” In a December report, the investment bank forecast that higher renewable energy quota targets would boost copper demand by an additional 4.2 million tons by 2030.

That would potentially push copper prices up to $15,000 a ton in 2025, well above the record peak of $10,730 a ton reached last March.