Green Revolution Price Tag Hinges on Future of Copper Rally

  • Decarbonization accounts for a fifth of copper demand
  • Global power grid will grow by 48 million kilometers by 2050
Photographer: Dhiraj Singh/Bloomberg
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Look just beneath the surface of many of the technologies powering the energy transition and there’s a red metallic glint. Copper is a vital part of green infrastructure from grids to wind turbines, and a recent price surge threatens to make decarbonization more costly.

Copper has roughly doubled from the lows seen a year ago and was near a nine-year high at the start of the month. Amid predictions of a new commodity supercycle kicking off, many analysts say the top hasn’t yet been reached for a metal that’s core to the green energy drive. Even after a 3.2% drop Thursday, the price is still up more than 30% in the past six months.