Copper Crunch Sparks Global Geopolitical Tensions
Copper prices have surged over 40% in 2025 and continue to hit record highs in 2026, driven by strong demand and supply constraints. This trend is expected to persist, with copper demand projected to increase by 50% by 2050.
Chile, the world's largest copper producer, accounting for approximately 18% of global reserves, faces significant challenges in meeting this growing demand. The country's state-run company Codelco has announced that it expects production to remain stagnant in the coming years due to declining ore grades and production shortfalls.
In July, Chile's leftist former President Gabriel Boric announced plans for the state to take a stronger hand in the future development of the country's lithium reserve. This move may divert investment from copper development, further exacerbating the supply gap.