The Coming Copper Shortage: Capturing the Theme with Global X ETFs
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Copper does not receive the same attention as gold or silver, yet it is the metal that is building the infrastructure, shaping the global economy today.
From artificial intelligence to electric vehicles to modern power grids, copper sits at the base of nearly every structural theme driving investment flows today. And right now, demand is accelerating faster than supply can keep up.
The bottom line up front: the world is heading toward a long-term copper imbalance. For investors, that creates an opportunity worth examining.
Copper’s Expanding Role in the Modern Economy
Copper is no longer just a construction material used in plumbing. It has become the backbone of electrification and digitalization.
Source: S&P Global, July 2022
According to a May 2024 study by the University of Michigan, electric vehicles require roughly three to five times as much copper as internal combustion cars. Solar and wind farms use far more copper than traditional power plants because of the wiring and connection density required. The more the global economy electrifies, the more copper demand compounds.
Source: S&P Global, July 2022
Artificial intelligence (AI) adds another powerful demand driver. Modern data centres are among the most power-intensive facilities ever built, requiring continual upgrades to transmission, storage, and grid infrastructure. Each of those upgrades depends on copper.
Source: Bloomberg, July 2024
From Cyclical Commodity to Structural Growth Story
This is where copper’s narrative shifts. Growth is no longer tied only to economic cycles. Increasingly, it is tied to national policy.
The United States, Europe, and China have multi-year electrification and decarbonization mandates. That turns copper into a bottleneck commodity. Analysts project demand could rise roughly 24% over the next decade, yet mine supply is increasing only marginally.
Three forces are driving this mismatch:
- declining ore grades
- frequent supply disruptions
- decade-long lead times required to build new mines
Source: S&P Global, July 2022
For example, BHP estimated in September 2024 that the largest historical copper deficit, just under one million metric tonnes in 2014, could be substantially surpassed by 2035 under multiple scenarios.
Why Emerging Markets Amplify the Trend
Emerging markets introduce a second layer of structural demand. Countries such as India and Vietnam are urbanizing rapidly, expanding their power grids, and capturing a larger share of global manufacturing. All of these activities are deeply copper-intensive.
Source: S&P Global, July 2022
Even a small rise in electricity consumption or EV adoption across Southeast Asia, Latin America, or Africa can translate into significant new copper demand. Long-term forecasts suggest emerging markets will drive much of the next phase of consumption growth.
Copper as a Geopolitical Asset
Reuters reported in November 2025 that copper is now officially classified as a critical mineral in the United States, reflecting its importance to national security, energy reliability, and grid modernization.
Supply, however, is heavily concentrated. Chile, Peru, China, Russia, and the Democratic Republic of Congo dominate global production. That concentration makes the market vulnerable to political instability, permitting delays, and trade tensions.
Source: S&P Global, July 2022
In response, the U.S. and its allies are seeking to diversify supply chains, secure long-term contracts, and accelerate domestic mining approvals. For North America, copper is no longer just an industrial metal. It is now a strategic resource with all the accompanying catalysts.
Where the Market Is Heading: The Structural Imbalance
These demand and supply dynamics converge into one outcome: a widening long-term deficit. The investment case for copper miners stems from their operating leverage.
Because many mining costs are largely fixed, sustained increases in copper prices have historically translated into relatively higher profitability for miners, reflecting their operating leverage in a tighter market.
In past cycles, copper miners have outperformed the metal’s spot price and copper futures during extended uptrends. That pattern may re-emerge if structural shortages intensify. For investors, this is where copper tangibly shifts from a macro narrative into a trade idea.
Why Some Investors Prefer a Copper Miners ETF
Accessing this theme directly can be difficult. Many pure-play copper companies operate in emerging markets or politically sensitive jurisdictions. Some trade on exchanges that Canadian investors cannot easily reach. Individual miners also carry idiosyncratic risks that have nothing to do with the copper thesis itself, including:
- cost overruns
- labour disruptions
- permitting delays
- dependence on a single mine
A diversified ETF approach avoids those single-company risks. The Global X Copper Producers Index ETF (COPP) provides exposure to firms active in copper ore mining, including companies that retail investors may not be able to purchase directly.
Source: Global X Canada, December 2025
The objective is clean, diversified copper exposure in a liquid vehicle, tied to long-term structural trends rather than betting on individual management teams or projects.
Copper Exposure for Income Investors
For investors seeking income or partial downside cushioning, the Global X Copper Producer Equity Covered Call ETF (CPCC) blends copper producer exposure with a covered call strategy.
Copper’s historical volatility can generate attractive options premiums. CPCC seeks to harness that volatility to produce consistent income while maintaining exposure to the broader copper theme.
Source: Global X Canada, October 2025
Premiums can help moderate pullbacks during periods when copper or copper miners experience sharp swings. However, this can come at the cost of some upside price appreciation.
Source: Global X Canada, October 2025
With long-term growth driven by AI infrastructure, energy transition policy, and national security priorities, CPCC offers a way to stay invested while generating monthly income along the way.
Copper’s Potential Decade of Importance
Copper sits at the intersection of electrification, emerging-market urbanization, and geopolitical strategy. Demand is rising. Supply is structurally constrained. And new mines take more than a decade to bring into production.
Whenever the conversation turns to long-term infrastructure or energy transition, the market repeatedly comes back to copper.
For investors, the question is not whether copper demand will grow. It is how to gain exposure in a way that balances opportunity with risk.
Whether through individual companies or a diversified ETF, the underlying narrative remains the same: copper’s role in the global economy is expanding faster than supply can respond.
Understanding that imbalance is what makes the sector worth watching over the next decade.
