All eyes on copper as ‘incredibly bullish’ investment opportunities arise
Global demand for renewable energy is sparking a bull market for copper — a crucial component for green energy, including solar, wind, hydro-power and electric vehicles. For example, roughly three times more copper is used in an electric vehicle (EV) than in a conventional-gas powered vehicle. By 2035, Bloomberg projects 43% penetration just in the light-duty vehicle market, which would equate to about 110 million cars, as reported by Mining.com. To meet that demand, the market would need up to 3.6 million extra tons of copper, equal to 15% of the current market. As that demand grows, copper companies are racing to discover new sources of supply. Several legitimate players that are taking advantage of growing demand for copper include District Copper Corporation (TSX:DCOP)(OTC:CAXPF), Southern Copper Corporation (NYSE:SCCO), Freeport-McMoRan (NYSE:FCX), Glencore (LSE:GLEN)(OTC:GLNCY) and BHP Billiton Ltd. (NYSE:BHP).
Whether it be District Copper Corporation’s Eaglehead project in northern British Columbia, or Southern Copper Corporation’s $2.5 billion Michiquillay project in Peru, copper companies are just beginning to attract a significant amount of investor attention with potential new copper supply.
