Freeport-McMoRan Inc. (FCX), one of the largest copper miners globally, is ramping up production in response to increasing global demand for copper, which is projected to exceed supply significantly. According to the International Copper Study Group (ICSG), the refined copper market is expected to face a deficit of approximately 150,000 tonnes this year as mine production growth slows. The global push for electrification, renewable energy, and AI-driven infrastructure is driving this heightened demand.
In particular, the International Energy Agency (IEA) forecasts U.S. electricity demand to grow by around 2% annually from 2026 to 2030, largely due to a rise in data centers and electric vehicles (EVs), which require two to three times more copper than traditional vehicles. It is estimated that data centers could consume hundreds of thousands of tonnes of copper annually by 2030, with facilities focusing on AI needing up to 50,000 tonnes each.
Freeport is leveraging artificial intelligence to optimize its operations, enhancing ore sequencing and equipment efficiency, potentially leading to a significant increase in copper recovery rates. Currently, the company anticipates generating about $12 billion in EBITDA this year, with expectations rising to over $17.5 billion by 2027 if copper prices remain stable.
