Why could copper prices rise in 2025?
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Why could copper prices rise in 2025?
Copper has long been known as one of the most important metals in the world, used in a variety of industries, from electrical wiring to renewable energy systems. 2025 promises to be a positive year for the copper market, and several important factors could drive price growth.
1. The electric car revolution
Electric vehicles are becoming not only a popular but also a necessary alternative to traditional cars in order to reduce carbon emissions. Because electric vehicles use much more copper than conventional cars – from batteries to electric motors and charging infrastructure – the demand for copper is growing faster than ever.
💡 Fact: One electric car uses about 80 kilograms of copper, and this number will only increase as battery technologies develop.
2. The renewable energy boom
Wind and solar power projects are unthinkable without copper, which is used in electrical wires, generators and other components. As many countries around the world, including the European Union, invest in renewable energy, the demand for this metal is growing rapidly.
💡 Interesting to know: A wind turbine uses about 5 tons of copper, and large solar parks use even more.
3. Global economic growth
A stable global economic recovery is forecast for 2025. As copper is one of the key indicators of economic development, industrial growth will directly increase demand for this metal. In particular, rapidly growing countries such as India and China are increasingly investing in infrastructure, the construction of which requires copper.
💡 Trend: New urban development projects and modernization of power grids will further increase the demand for copper.
4. Limited supply
Although demand is growing, copper production is not growing as fast as it should. Due to limited new mine development projects and a more complex extraction process, the supply of this metal may not keep up with market demand. This naturally pushes prices up.
💡 Investor Tip: Limited supply could mean steady price growth in the coming years, making copper a great long-term investment.