The world is moving away from fossil fuels, towards large-scale adoption of clean energy technologies.

Building these technologies is a mineral-intensive process. From aluminum and chromium to rare earths and cobalt, the energy transition is creating massive demand for a range of minerals.

Copper is one such mineral, which stands out due to its critical role in building both the technologies as well as the infrastructure that allows us to harness their power. //

Relative to 2020 levels, annual copper demand from solar PV installations could more than double by 2030, and almost triple by 2050. The largest percentage increase in copper requirements comes from offshore wind farms. IRENA’s REmap scenario requires 45,000 MW of annual offshore wind installations in 2050, which translates into 432,000 tonnes of copper—a 648% increase from 2020 levels. //

According to Citigroup, the global copper market is expected to be in a 521,000 tonne deficit in 2021—and the transition to renewables is still in its early stages.

While the demand for copper comes from a range of industries, the majority of its supply comes from a few regions, making the supply chain susceptible to disruptions. Mine shutdowns in 2020 exemplified this, as copper production fell by around 500,000 tonnes.

Additionally, average ore grades in Chile, the largest producer of copper, have fallen by 30% over the last 15 years, making it more difficult to mine copper