Press Release: UNCTAD Highlights Urgent Need to Address Copper Supply Strain Amid Rising Global Demand
In its latest Global Trade Update, the United Nations Conference on Trade and Development (UNCTAD) has identified copper as an essential resource in the rapidly evolving electrification and digitalization of the global economy. With demand projected to rise by over 40% by 2040, copper supply is under unprecedented strain, threatening the advancement of critical technologies including electric vehicles, solar panels, and artificial intelligence infrastructure.
"Copper is no longer just a commodity," stated Luz María de la Mora, director of UNCTAD’s International Trade and Commodities Division. The metal, celebrated for its high conductivity and durability, is vital for powering homes, transportation, data centers, and renewable energy systems. However, developing new copper mines is a costly and lengthy endeavor, often requiring up to 25 years from discovery to operation. To meet rising demand by 2030, an estimated $250 billion investment and at least 80 new mining projects are necessary.
Most of the world’s copper reserves are concentrated in just five countries, including the Democratic Republic of the Congo, where extensive exports hinder local economic growth. While China dominates the refined copper market, raw material-rich nations are relegated to low-value production roles. UNCTAD emphasizes that these countries must invest in refining and manufacturing capabilities to capture the full potential of their resources.
Additionally, tariff barriers on finished copper products complicate investment in higher-value industries. UNCTAD urges governments to streamline business regulations and develop regional supply chains to remedy trade imbalances.
With new mining projects facing significant delays, recycling is becoming an increasingly vital solution. In 2023, recycled copper accounted for nearly 20% of global output, offering developing nations a pathway to reduce dependence on imports and foster sustainable practices.
UNCTAD concludes, “The age of copper has arrived, but coordinated trade and industrial strategies are essential to avoid supply strain and empower resource-rich developing countries.”
Note: The image is for illustrative purposes only and is not the original image of the presented article.
