Copper prices are surging toward the $12,000 mark, fueled by a perfect storm of supply disruptions, frantic artificial intelligence (AI) demand, and what analysts are calling a "highly irregular" market distortion triggered by U.S. trade policy fears. According to OilPrice.com, the metal is currently trading near record highs, touching $11,952 per ton on the London Metal Exchange (LME) last Friday.
Major financial institutions are aggressively revising their forecasts upward. Citi analysts now predict copper could hit $13,000 per ton in the coming months, a staggering 8% jump from current levels. "The AI boom has created an insatiable appetite for copper that the market is struggling to keep up with," said Jenny Chase, head of solar analysis at BloombergNEF. "Throw in supply chain chaos and trade tensions, and you have a recipe for continued price volatility."
The AI Copper Crunch
The surge in copper prices is directly tied to the exploding demand for the metal from the AI industry. As Reuters reported, companies like Nvidia, AMD, and Google are gobbling up vast quantities of copper for their server farms and chip manufacturing facilities to power the AI revolution.
"Copper is the lifeblood of the AI buildout," said Jensen Huang, CEO of Nvidia, in a recent interview with The Verge. "Every data center, every AI accelerator, every high-performance computing system - they all require massive amounts of copper for the wiring, cooling systems, and electrical infrastructure."
This insatiable AI-driven demand is colliding with ongoing supply chain disruptions, including mine shutdowns in Chile, political unrest in Peru, and trade tensions that have restricted exports from key producers. The Financial Times noted that the U.S. is increasingly "funneling critical minerals like cobalt and graphite into national defense" rather than making them available for clean energy technologies and other civilian uses.
Glencore Bets on Aftermarket Services
In the midst of the copper crunch, mining giant Glencore is doubling down on its aftermarket services business. The company recently announced the launch of "AssetCare," a new division focused on delivering "expanded end-to-end lifecycle support" for its mining equipment clients globally, as reported by International Mining.
"The supply chain chaos has made it harder than ever for miners to keep their operations running smoothly," said Glencore Technology's managing director. "By investing in our aftermarket capabilities, we can help our customers maximize the uptime and productivity of their mission-critical assets."
A Strategic Mineral Discovery in the U.S.?
There may be a silver lining to the copper crisis, at least for American interests. OilPrice.com reported that a Utah-based mining firm has identified a significant new deposit of rare earth minerals that could provide the U.S. with a strategic counterweight against China's dominance in this critical supply chain.
"This discovery couldn't have come at a better time," said an analyst quoted in the article. "With trade tensions escalating and China wielding its rare earth leverage, having a domestic source of these vital materials is a major geopolitical and economic advantage for the U.S."
What's Next for Copper and Critical Minerals?
The global economy's insatiable appetite for copper and other critical minerals shows no signs of abating, even as supply chain snarls and trade disputes continue to roil the market. Analysts warn that further price spikes and volatility are likely in the months ahead, with the AI boom emerging as a major new wild card.
Investors and policymakers will be closely watching how companies and governments respond to these challenges. Innovative solutions like Glencore's aftermarket push, as well as potential new domestic sources of supply, could help ease the strain. But with the clean energy transition and national security interests both hinging on secure critical mineral supplies, the battle for these vital resources is far from over.
Reporting based on coverage from OilPrice.com, the Financial Times, International Mining, and The Verge, December 15-16, 2025.