BHP Bolsters Copper Production Amid AI-Driven Demand Boom

The rapid growth of artificial intelligence (AI) is propelling global copper demand to new heights. Industry forecasts predict that copper usage in AI data centers will soar from 200,000–500,000 tons annually in 2023 to 500,000–1.2 million tons by 2027, reflecting a compound annual growth rate of 26%. By 2027, AI-related demand is expected to account for 3.3% of global copper consumption, adding upward pressure on prices.

The shift to clean energy is also a key driver. Electric vehicles, solar power, and grid modernization projects are increasing copper demand as countries pursue greener energy goals. BHP, one of the world’s largest mining companies, projects that global copper consumption will rise from 30.4 million tons in 2021 to 52.5 million tons by 2050—a 72% increase.

In response, BHP is scaling up production. In the second half of 2024, the company reported a 10% year-on-year rise in copper output, led by a 22% surge at its Escondida mine in Chile, which hit a decade-high production level. To sustain growth, BHP has committed at least $10 billion over the next seven years to expand Escondida, alongside $7.3–$9.8 billion earmarked for new mining and refining projects set to begin in 2028.

Other mining giants are also ramping up efforts. China Molybdenum Corporation produced 650,000 tons of copper in 2024, a 55% increase year-over-year and well above its target range. Zijin Mining is advancing several projects, aiming to boost annual output to 1.5–1.6 million tons by 2028.

As AI adoption and clean energy initiatives reshape global markets, mining companies are making significant investments to meet the rising demand for copper.