AI Boom Fuels Copper Crisis: Demand to Soar 50% by 2040, Warns S&P Global

• Global copper demand is projected to surge by nearly 50% by 2040, driven primarily by the rapid expansion of AI, defense, and robotics, according to S&P Global.
• Annual demand is expected to reach 42 million tonnes by 2040, up from 28 million tonnes in 2025, leading to an annual shortfall of over 10 million tonnes.
• The accelerating electrification of the global economy, led by AI infrastructure, hyperscale data centers, and industrial robotics, is now the dominant demand driver.
• Rising geopolitical tensions and increased defense spending by countries like Japan and Germany, alongside the Ukraine conflict, are further tightening copper markets.
• Chile and Peru are major producers, while China dominates smelting; the United States, a significant importer, faces potential supply strains.

Why It Matters: AI and defense are set to create a severe global copper shortage by 2040, demanding urgent supply solutions.