Copper (Cu), atomic number 29, remains one of the world’s most critical industrial metals due to its exceptional electrical and thermal conductivity, malleability, and corrosion resistance. It continues to be essential in construction, power infrastructure, electric motors, plumbing, renewable energy systems, and metal alloys.

A typical home still contains ~500 lbs of copper, while a gasoline vehicle uses ~40 lbs and an electric vehicle requires ~180 lbs, reflecting copper’s central role in electrification.

Key Uses & Substitution

• Electrical wiring remains the dominant use case.
• Aluminum is the main substitute, but copper is still preferred because it: 
  • Conducts electricity significantly better
  • Is more durable and less prone to breakage
  • Handles heat more effectively

North American & Canadian Copper Market

Canada’s Position

Canada remains a major global copper supplier, with production concentrated in British Columbia, Ontario, and Quebec. Recent analysis shows Canada is strengthening its role in global supply chains as demand accelerates for renewables, EV infrastructure, and datacenter power systems.

Market Growth Outlook

The USA & Canada copper market is forecast to grow from USD 23.09B in 2025 to USD 37.88B by 2035, a 5.1% CAGR driven by:

• Renewable energy expansion
• EV manufacturing and charging infrastructure
• Grid modernization
• Datacentre buildouts

Supply Constraints

Global copper supply remains tight due to:

• Limited investment in new mines
• Disruptions in major producing regions (Chile, Peru)
• Rising demand from electrification and AIdriven infrastructure

These constraints reinforce longterm concerns about structural deficits in global copper supply.

Demand Drivers in 2026

Copper demand is being propelled by:

• Power infrastructure upgrades
• Renewable energy systems (solar, wind, grid connections)
• EVs and hybrid vehicles
• Data centres, which require massive electrical and cooling systems
• Construction growth in North America

Copper prices reached new highs in 2025 due to supply disruptions and strong demand from power infrastructure and datacentre expansion.

Price Outlook in 2026

• Copper entered 2026 “firmly supported” by strong structural demand and tight supply.
• Aluminum demand is rising as some users seek substitutes due to high copper prices, but substitution remains limited because copper is technically superior.
• Market conditions remain tight, with potential for further price strength if supply disruptions continue.

Goldman Sachs’ earlier longterm thesis—that copper could reach US$6.80/lb by decadeend and potentially spike much higher—remains consistent with current structural deficits, though 2026 pricing is driven more by infrastructure and datacentre demand than by China alone.

Summary of Key 2026 Realities

• Copper demand is accelerating, especially in North America, due to electrification and datacentre growth.
• Supply remains constrained, with limited new mining investment and disruptions in major producing countries.
• Prices remain strong, supported by tight markets and longterm structural deficits.
• Canada’s role is expanding, with increased production and strategic importance in global supply chains.