Global megatrends across several industries to increase long-term copper demand.
Updating an initial study completed in 2019, Metra Martech’s research finds that despite the sector experiencing the effects of the COVID-19 pandemic, many of the previously identified drivers for increased usage of copper remained and its long-term growth trajectory continues to look positive.
The research, commissioned by ICA, focuses on three growth areas for copper – renewable electricity generation, the building construction sector and electric vehicles.
The rapidly growing renewable energy sector relies on the exceptional conductive properties of copper to improve efficiency. This preference is set to continue with copper being used in battery energy storage, an area expected to grow by between 30 and 40 percent per annum. The increased prevalence of high copper intensity heating pumps and electrical heating systems will boost demand in the construction sector. On the roads, the number of electric vehicles, which rely on copper in many of their functions, is expected to increase further thanks to technological advancement that increase vehicle performance and reduce battery costs.
“Our research update shines a light on the trends and impacts on major industries that rely on copper. While the COVID-19 pandemic has caused a short-term world growth slowdown, it also highlights the need for international action in crisis situations, such as implementation of climate change solutions; these are reliably predicted to increase the long-term demand for copper,” noted Peter Gorle, Managing Director at Metra Martech.