Copper Supply Could Fall Short of Demand by 2035
The IEA projects potential market strains as record copper prices underscore the intensity of infrastructure requirements.
Updated on Oct. 30, 2026 in Energy
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The IEA released a new episode of its Everything Energy podcast detailing growing strains in the global copper market. Analyst Shobhan Dhir highlights how surging demand for electric vehicles and data centers is pushing the industry toward a potential supply crunch by 2035.
Why it matters
Copper is an essential material for electricity grids and modern computing infrastructure, making market volatility a direct risk to global energy transitions. Current production trends suggest that supply may struggle to keep pace with rapid electrification goals.
Copper prices hit record highs in 2026 as the metal remains a foundational element in electricity systems and high-density data centers. While supply capacity is expanding, demand projections indicate a significant shortfall emerging by 2035.
The players
IEA
The International Energy Agency is an intergovernmental organization that analyzes global energy markets, security, and transition trends.
Shobhan Dhir
An analyst who examines global energy markets and the critical mineral supply chains that support infrastructure development.
The details
Copper serves as a primary conductor for electricity due to its high thermal and electrical conductivity, making it vital for transmission lines and motor windings in electric vehicles. As infrastructure complexity increases for data centers, the intensity of copper usage per unit of capacity remains a critical bottleneck. Analyst Shobhan Dhir outlines how these structural dependencies create supply-side pressure that is difficult to offset with current mining and recycling throughput.
Timeline
2026: Copper prices reached record highs.
October 30, 2026: IEA released new podcast episode.
2035: Projected shortfall of copper supply.
The Tech Race
This analysis aligns with the IEA Critical Minerals Market Review to track the industrial bottlenecks hindering global electrification. It highlights a widening gap between the material requirements for modern data centers and the current trajectory of primary metal production.
Market volatility in copper reflects the underlying cost of high-density computing and grid expansion that will ultimately shape equipment pricing. Readers should monitor industry-wide capital expenditure reports to see how manufacturers adjust for higher material costs.
The takeaway
The sustained demand for electricity and digital infrastructure is pushing critical commodities to historic price ceilings. Watch for future IEA supply-demand reports in 2027 to see if mining output projections close the projected 2035 supply gap.
Further reading
For broader trends in resource management and infrastructure, explore the Energy section.
Source note: This article includes information reported by IEA.
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