Copper Prices Surge as Supply Lags Behind Growing Global Demand

Copper prices surged more than 40% in 2025 and have continued to set new records in 2026, reflecting booming demand from AI data centers, electric vehicles and modern power networks. Chile, the world’s top producer with roughly 18% of known reserves, says output will stay flat, citing declining ore grades at mines such as Escondida, Pampa Norte and a halted expansion at El Teniente, while new projects require 15 years and $30-40 000 per ton of capacity.

The International Energy Agency projects a 25% supply deficit by 2035, and investment in Chile’s copper sector is being diverted toward its lucrative lithium reserves under the current administration of José Antonio Kast. The Democratic Republic of Congo, now the second-largest producer after a 10% output rise, and Zambia, aiming to triple production, are potential substitutes but are hampered by poor transport, power shortages and political risk. The U.S.-backed Lobito Corridor, linking Angola’s port to DRC and Zambian mines, is viewed as essential for scaling African supply, while China’s deep involvement in DRC projects adds a strategic dimension to the emerging copper race.