Copper prices on the London Metal Exchange reached a record $10,800 per tonne in February 2026, surpassing the previous high set in May 2024. The rally has been driven by converging demand from three major sources: electric vehicle production, renewable energy grid infrastructure, and AI data centre construction, all of which are copper-intensive.
Why Copper Is Critical
An electric vehicle uses approximately 83 kg of copper, roughly four times more than a conventional car. Solar panels require about 5.5 tonnes of copper per megawatt of capacity, while wind turbines use up to 4.7 tonnes. Data centres use copper extensively in wiring, busbars, and cooling systems, with AI-optimised facilities requiring approximately 2-3 times more copper per rack than traditional server farms due to higher power densities.
The International Copper Study Group estimates that global copper demand will reach 30 million tonnes in 2026, against mine production of approximately 23 million tonnes, creating a structural deficit that is expected to widen through the end of the decade.
Supply Constraints
Chile and Peru, which together account for roughly 40% of global copper production, have faced challenges. In Chile, water scarcity in the Atacama Desert has limited output from major mines including Escondida (BHP) and Collahuasi. Peru's mining sector has navigated community protests and permitting delays. New large-scale mine development typically takes 15-20 years from discovery to production.
Investment Implications
Goldman Sachs has described copper as "the new oil," projecting prices could reach $15,000 per tonne by 2030. The metal's essential role in electrification makes it a key barometer of the energy transition's pace. Some analysts have drawn parallels with tokenised commodity exposure: products like Tether Gold (XAUT) and PAX Gold (PAXG) have demonstrated demand for blockchain-based commodity access, though no equivalent tokenised copper product has achieved significant scale.
For live copper prices, visit London Metal Exchange. For copper market data, see International Copper Study Group.