Copper's use in global infrastructure development is becoming increasingly critical, especially as emerging markets expand and industrialize. The metal, valued for its electrical conductivity, is now indispensable in energy grids, transportation networks, and telecommunications. As nations worldwide focus on upgrading infrastructure to meet the demands of modern economies and climate targets, copper demand is set to rise continually year over year.

Copper in Energy Infrastructure

Copper is central to energy infrastructure, underpinning the shift towards renewable energy and the electrification of transportation. Copper's high conductivity makes it the preferred material for power transmission, with renewable technologies like solar panels, wind turbines, and electric vehicle (EV) charging stations all requiring significant amounts of copper. The International Energy Agency (IEA) projects that meeting net-zero emissions goals by 2050 will necessitate a near-doubling of copper consumption from current levels, driven by green energy transitions across major economies.

Emerging markets, particularly in Southeast Asia and Africa, are experiencing rapid industrialization, which intensifies their need for reliable energy. Many of these regions are building extensive energy grids from the ground up, integrating renewable technologies into their networks. For example, India's electricity demand is expected to grow fivefold, which will significantly drive copper demand due to the infrastructure required to deliver this energy efficiently​. To deliver the copper needed, mining companies are making new discoveries at projects with high deposit potential around the world.

For example, Solaris Resources (TSX:SLS) (NYSE:SLSR) is making progress at its Warintza Project in southeastern Ecuador. Earlier this year, the company published its global resource estimate, coming in at 2.3 Bt. Solaris continues to drill and is on track to exceed the 60,000 meters planned for 2024, which will be the basis for an updated mineral resource estimate in mid-2025. Recent drilling results include impressive grades of copper equivalent (CuEq) mineralization, with high-grade surface intercepts reporting 87 meters at 1.23% CuEq, 93 meters at 1.01% CuEq, and 84 meters at 1.00% CuEq—all from at or near surface. Importantly, these intercepts of high-grade mineralization were located partially outside of the mineral resource estimate, and some of the holes also improved upon modelled grades in sparsely drilled areas. As Solaris continues to expand and upgrade resources, the project's high productivity reflects substantial infrastructure investments on-site, positioning Warintza as a critical asset in the future copper supply.

Transport and Telecommunications

Copper's importance in transportation systems extends beyond EVs. Traditional infrastructure like railways and public transit systems also relies heavily on copper wiring and components. As cities in developing countries expand, the construction of new rail networks and the electrification of existing ones further fuel copper demand. China's massive investments in rail and urban transit projects underscore this trend, making the country one of the largest consumers of copper globally​.

In telecommunications, fiber optics have replaced copper in some communication lines, but copper is still vital for power systems and hardware connections in 5G towers and data centers. As these centers proliferate with the rise of cloud computing and IoT (Internet of Things), the need for copper in telecommunications infrastructure continues to grow​.

Drivers of Copper Demand in Emerging Markets

Emerging economies, particularly in Southeast Asia and Africa, are heavily investing in infrastructure. These regions are working to close the gap in electrification and connectivity compared to developed nations. As they build modern infrastructure, copper demand is soaring. The Democratic Republic of Congo, Zambia, and Chile, all major copper producers, are ramping up production to meet this rising demand. Projections suggest that copper production will increase by over 3% in 2024 alone, driven by expansions in these countries​.

Infrastructure development in these regions is fueled by factors beyond electrification. Urbanization, industrial expansion, and technological upgrades require robust energy grids, extensive transportation networks, and modern telecommunications systems, all copper-intensive. With high population growth rates and urban migration, these regions are setting up infrastructure that mirrors that of developed nations, thus amplifying global copper demand​.

Supply Challenges and Geopolitical Implications

However, meeting this escalating demand is not without challenges. Copper supply is constrained by several factors, including limited new mining projects and regulatory hurdles in key mining regions. A supply gap is anticipated as early as the mid-2020s, potentially reaching 10 million metric tons by 2035. This shortage could impact global energy transition efforts, with some analysts comparing it to the 20th-century scramble for oil​.

Geopolitical issues also influence copper supply. Countries with significant copper reserves, such as Chile and Peru, face political and social challenges that can disrupt mining operations. In the U.S., lengthy regulatory processes and litigation make it difficult to expand copper mining capacity. This means that countries like China, which already has significant influence over the copper market, may strengthen their position as they invest in overseas mining operations to secure their supply chains​.

A Copper-Powered Future

Copper is the backbone of energy grids, transportation, and telecommunications and is needed for modernizing economies and achieving sustainability goals. The demand will continue to grow, driven by urbanization and industrial expansion in emerging markets and the global push for renewable energy. However, addressing supply chain constraints and geopolitical issues will be crucial to meeting this demand and avoiding disruptions that could hinder global infrastructure projects. The entire industry will be on the lookout for more mining projects that could help solve those major challenges, like the Warintza Project.