Copper demand to outstrip supply by early 2030s?

The following article from Bloomberg touches on copper's role in the decarbonisation thematic.

The article highlights the structural shortage expected in the copper market over the coming decade. A thesis that we tend to agree with and have been making Investments based on.

With copper already the second most used industrial metal in the world and the electrification boom likely to increase demand by multiples from where it is today we think the outlook for copper demand is expected to outstrip the supply response.

At present, we hold Investments in the following companies as copper exposure:

Kuniko (ASX: KNI) - Next Investors Portfolio

• Zero Carbon Copper, nickel, cobalt and lithium, Exploration stage, European Union (Norway)

Titan Minerals (ASX: TTM) - Next Investors portfolio

• TTM recently started its first ever drilling program at its copper porphyry target at its project in Ecuador.

TechGen Metals (ASX: TG1) - Catalyst Hunter portfolio

• TG1 is currently drilling one of its copper projects in WA (Australia).

Mandrake Resources (ASX: MAN) - Catalyst Hunter Portfolio

• MAN is currently completing the acquisition of a copper project in Chile.

Auking Mining (ASX: AKN) - Catalyst Hunter Portfolio

• AKN is currently updating its JORC resource at its project in WA. (Australia).

Click here or on the image above to read the article in full.

Our key takeaways from the article are as follows:

• Copper is used in wind turbines, solar modules, transmission and distribution lines that carry electricity to consumers, wiring in mobile phones and the motors that power electric vehicles (EVs).
  Energy research firm BloombergNEF thinks Copper demand will increase by more than 50% between now and 2040.
• BloombergNEF predicts that primary copper production can increase about 16% by 2040, less than the rise in demand. The research firm predicts that by the early 2030s, copper demand could outstrip supply by more than 6 million tons per year.
• Copper mines are not able to be put into production quickly. No new copper discoveries are expected to be operational in the next three years.
• Miners are currently mining ore grades of 0.5% copper or lower, grades that are a quarter of what they were 100 years ago. This means the ability of the majors to increase production is limited.