COMMODITIES OUTLOOK
How copper is enabling the future of electrification and AI
Copper has historically supported various manufacturing sectors, but its importance is now evolving in line with a new era of industrial development. From electric vehicles (EVs) and renewable energy systems to AI infrastructure and defence technologies, copper’s physical properties make it essential to a wide range of modern applications. As a result, demand for the metal is growing rapidly, and copper is increasingly recognised as essential to both the short and long-term growth of these industries.
Examining mineralisation at Talisman’s Fougnar Copper-Silver Project, Morocco.
W ith the global shift towards electrification gaining pace, the rapid scaling of AI and advanced technologies is emerging as a major driver of copper demand. EVs are a key example, requiring 83 kg of copper per battery – significantly more than the 23 kg needed in a conventional internal combustion engine, according to the International Copper Association. Used in motors, wiring, charging infrastructure, and battery systems, copper’s high thermal conductivity makes it essential in managing the heat generated within EV batteries and motors. Its ability to allow efficient power transfer within these systems minimises energy loss and improves overall efficiency, making it cost-effective as well as essential to proper functioning. With the International Energy Agency reporting that global EV sales increased by 6 million from 2023 to 2025, accounting for over 25% of new cars sold, copper demand generated by this sector is likely to increase significantly in the coming years. These physical properties also reduce the energy needed to produce electricity, making copper an enabler of various renewable energy systems such as wind, solar power, and grid- scale batteries. According to the Internation Copper Association,
green energy infrastructure contains six-times more copper than traditional systems. With renewable energy sources now contributing to nearly a quarter of the world’s power, this further highlights the need for a steady copper supply to support the sector’s growth. Copper is also central to the infrastructure that powers new advanced technologies, such as data centres and AI processing facilities, which rely heavily on the metal for efficient power distribution and thermal management. Within the servers themselves, copper is used in circuit boards and connectors, enabling high-speed data transmission and reliable performance. The metal’s properties also make it a preferred material for cooling systems, helping to maintain optimal operating conditions within AI processors that generate significant heat. As computing evolves to handle increasingly complex AI capabilities, the need for high-efficiency materials also becomes critical. Each data centre can require up to 50 000 tonnes of copper according to the Copper Development Association, and as AI systems scale, demand for the metal will continue to grow. With these sectors largely driving copper demand, global consumption of the metal is projected to rise from approximately
8 MODERN MINING www.modernminingmagazine.co.za | May 2026
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