Analysts Say $210bn Investment is Needed to Boost Copper Mining

A recent report has determined that by 2035, the global demand for copper shall have hit 42.7 million tons annually, representing a 24% increase. The report highlights that electrification initiatives like electric car production and renewable energy systems are driving long-term demand growth that extends well beyond conventional construction and industrial uses. 

To meet this demand, analysts argue that roughly 8 million tons of new capacity will be needed from brownfield and greenfield mining projects annually, in addition to 3.5 million tons from improved utilization of scrap copper. 

In total, $210 billion in new investment is needed over the next 10 years to close the widening imbalance between the red metal’s demand and available supply. This need for investment is further underscored by recent market developments. 

During his address at LME Week in late 2025, Codelco President Máximo Pacheco observed that forecasts made a year earlier had pointed to a copper surplus in 2025. However, the market has instead shifted into deficit, exposing the ongoing disconnect between expected supply growth and realized production gains. 

It doesn’t help that economic slowdowns are no longer expected to meaningfully ease demand pressures or support supply-side development. As a result, mining companies can no longer depend on cyclical demand declines to create time for project advancement. The sector instead faces a persistent supply shortfall, with ongoing pressure to fast-track new developments while navigating rising operational and technical complexity. 

A survey conducted by Ernst & Young shows that technical and operational challenges are the leading factors impeding the pace of copper mine development. 

Figures show that global copper ore grades have fallen by roughly 40% since the 90s. EY’s Global Mining & Metals Leader, Paul Mitchell, explains that this decline introduces compounding economic challenges that extend beyond the need to process higher material volumes. 

Lower-grade resources demand significantly greater energy input per ton of copper, as miners must handle significantly more ore through crushing, grinding, flotation, and leaching stages. 

Another factor delaying copper project development is environmental permitting, alongside social resistance. Approval processes have grown more demanding as governments strengthen environmental safeguards and lengthen public consultation timelines. Restrictions on protected areas are also limiting access for new mining developments as governments expand conservation zones in response to climate commitments. 

Mandates to reduce carbon emissions further constrain operations, influencing mine design and equipment selection. Mining firms are now required to integrate emissions-reduction technologies and renewable energy systems into their project plans, adding complexity to feasibility studies and economic assessments. 

While attention is currently being directed at the supply-side issues facing the copper industry, a similar situation may be unfolding in the platinum extraction industry where companies like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) may need to expand their capacity or open new sites in order to address the persistent annual deficits. 

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