IEA Says Copper Demand is Poised to Outstrip Supply in 10 Years

The demand for copper, a metal required during the transition to cleaner forms of energy, is likely to outstrip its supply within the coming ten years, according to the International Energy Agency.

The supplies of this metal, which is a major component of each type of electrical system currently in existence, is set to have a shortfall of 30% of the needed supply by 2035 in case no intervention is undertaken to boost supply. This dire warning was sounded by Fatih Birol, the IEA’s executive director, based on an analysis the agency conducted.

He urged developed countries to participate more in refining not just copper but many other vital metals required by various industries. They also need to create partnerships with developing nations in order to be able to refine those needed metals.

The critical minerals required to make wind turbines, solar panels as well as overhauling the energy system of the globe are almost entirely being processed in China. This is happening despite the fact that those minerals are extracted around the world, especially in Latin America, Australia and Africa.

IEA data indicates that at least 70% of the global energy transition minerals are refined in China. This includes cobalt, manganese, lithium and gallium that are necessary in battery manufacturing and in the making of other components used while generating renewable energy. China’s dominance in this processing is increasing despite the reduction in critical mineral prices from the levels they reached in 2021-2022 due to supply chain shocks triggered by the Covid-19 pandemic.

Birol urged governments to play a bigger role in ensuring supplies of the needed minerals increase. He pointed out that developed nations like Japan, South Korea, the U.S., the UK and several EU countries already have the needed technology. On the other hand, Latin America and Africa have the needed resources. International cooperation can enable countries with resources to work with those having the needed technology to refine and manufacture low-carbon products and systems, the IEA chief said.

He emphasized that private sector players shouldn’t be left to drive this process alone since the needed results will not be attained. Government involvement is vital to accelerating the availability of the needed minerals. For example, the duration needed to move from deposit discovery to mineral extraction can only be reduced from the current approximately 17 years to a shorter time by reforms to government permitting processes.

The prediction and warning about copper supply shortages made by the IEA chief confirms to enterprises like Torr Metals Inc. (TSX.V: TMET) currently having properties with abundant supplies of this vital mineral that there will be favorable market conditions going forward and investments into their operations could accelerate.

NOTE TO INVESTORS: The latest news and updates relating to Torr Metals Inc. (TSX.V: TMET) are available in the company’s newsroom at https://ibn.fm/TMET

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