Copper supply may face 25% deficit by 2035 despite record prices: IEA

According to the Times of Oman, the International Energy Agency (IEA) has issued a warning regarding the future of global copper supplies. The report suggests that the world could face a 25 per cent deficit in primary copper supply by 2035, even as prices for the metal reach record highs. This projection highlights the growing tension between the rising demand for critical minerals and the current pace of new mining project development.

Copper is a vital component in the global transition toward renewable energy, serving as a key material for electric vehicles, power grids, and various green technologies. The IEA's analysis indicates that while high market prices typically incentivize new production, the lead times for bringing new mining projects online remain a significant hurdle. The industry is currently struggling to balance the immediate need for raw materials with the complex regulatory and logistical challenges inherent in expanding extraction operations.

Industry experts note that the potential shortfall could have broad implications for the global economy, particularly for sectors heavily reliant on electrification. As nations continue to pursue decarbonization goals, the pressure on supply chains for essential metals like copper is expected to intensify. The IEA's forecast serves as a benchmark for policymakers and investors to assess the risks associated with the current trajectory of mineral production and the necessity for more efficient resource management and recycling strategies in the coming decade.