In 2021, it led the world in EV sales, with a total of about 2.3 million units sold, and analysts expect that trend to continue in the coming years. As governments push forward with transportation network electrification and energy storage initiatives as a means to combat climate change, copper demand from this segment is expected to surge.Įurope is becoming a strong hotbed for copper use as its renewable energy sector grows.
#Copper spot price driver#
However, the biggest driver of copper consumption in the renewable energy sector is rising global demand for electric vehicles (EVs), EV charging infrastructure and energy storage applications. Industrial production and construction activity in the Asian nation have been like rocket fuel for copper prices.Īdditionally, copper’s conductive properties are increasingly being sought after for use in renewable energy applications, including thermal, hydro, wind and solar energy. In recent decades, copper price spikes have been strongly tied to rising demand from China as the economic powerhouse injects government-backed funding into new housing and infrastructure. Rising demand for new homes and home renovations in both Asian and western economies is expected to support copper prices in the long term.
In fact, construction is responsible for nearly half of global copper consumption. The ever-growing number of copper uses in everyday life - from building construction and electrical grids to electronic products and home appliances - make it the world’s third most-consumed metal.Ĭopper’s anti-corrosive and highly conductive properties are why it’s the go-to metal for the construction industry (for example, in copper pipes and copper wiring). Robust demand has long been one of the strongest factors driving copper prices. What key factors drive the price of copper?
Top Battery Metals Stocks on the TSX and TSXV.
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