One striking forecast reveals the reasons copper prices may keep climbing for many years ahead

Copper Prices Surge Amid AI Infrastructure Expansion

• The rapid development of AI infrastructure has propelled copper prices to unprecedented levels.
• S&P Global anticipates a prolonged phase of increasing demand for copper.
• Despite this, supply is projected to remain limited until at least 2040.

In 2025, copper joined a significant rally alongside other precious and industrial metals. If current projections for supply and demand hold true, the upward momentum for copper may continue well into the future.

By the end of 2025, copper had climbed approximately 44%, reaching a new record high. The ongoing AI revolution is expected to fuel demand for copper over the next decade and a half, even as supply remains tight.

S&P Global’s recent report forecasts that copper demand will rise by 50% by 2040, reaching 42 million metric tons. The study highlights the challenges faced by the mining sector, including aging facilities and regulatory obstacles, which make it difficult to keep pace with this surge in demand.

According to the report, unless new mining projects or technological breakthroughs emerge, copper output is expected to peak in 2030, resulting in a global shortfall of about 10 million metric tons by 2040.

Carlos Pascual, Senior Vice President for Geopolitics and International Affairs at S&P Global Energy, noted, “Over the past five years, several nations—including the United States in 2025—have classified copper as a ‘critical metal.’ Copper serves as the essential link connecting machinery, digital systems, transportation, infrastructure, communications, and security.”

Last year’s broad surge in metals also benefited copper, alongside gold and silver, which reached record highs. While some analysts predict a potential pullback in prices for these metals as market dynamics evolve, copper’s vital role in industry may help sustain its value.

José Torres, chief economist at Interactive Brokers, believes copper’s strategic significance will keep prices elevated. He explained, “The limited supply is prompting countries to accumulate copper reserves to support their AI ambitions. Governments worry that without sufficient copper, they may lose their competitive edge in an increasingly tech-driven world.”

Rita Adiani, president and CEO of Titan Mining Corporation, agrees that the anticipated demand surge outlined by S&P will likely usher in a period of higher prices.

She added, “Much of the additional demand is linked to electrification, grid expansion, data centers, AI, and defense. Copper’s superior conductivity and reliability make it difficult to replace in these critical sectors.”