Copper Shares Are the Next Big Opportunity on the ASX

Any element other than gold isn’t hot with investors right now, but we think copper shares are the next big commodity investment opportunity on the ASX, and current prices could present the perfect timing.

This is not just any metal – we are talking about one of the strongest conductors in the periodic table and one that proves its worth by being a prominent element used in electrical equipment. Critical apparatus like wiring and motors (electrical), roofing and plumbing setup (construction), and heavy machinery (industrial) all comprise this essential metal.

The revolutionary shift towards green energy industries, especially with the emergence of electric vehicles (EVs), has led demand for many elements like lithium rise, but many seem to forget that copper is important too. With this unparalleled growth, investors should take a look at stocks in this space on the ASX.

What are the Best ASX Copper Shares to invest in right now?

Check our buy/sell tips

Demand for Copper

Copper/Cuprum (in Latin), is a resourceful element for a lot of good reasons. The metal plays a crucial role in enhancing many modern technologies and it proves to be essential for global economic growth.

Here are some viable uses of this commodity which underpin demand:

Electric Vehicles

The world is looking up to a potential shift to the electric vehicle market. It is also true that people still heavily rely on fossil fuels, but this green revolution is expected to change that dependence, thereby forming a sustainable environment.

Copper is a critical component in the making of EVs. An EV uses nearly four times the quantity of copper compared to a traditional fuel-powered car. According to the International Energy Agency (IEA), the number of electric vehicles on the road is expected to reach 145 million by 2030. This will drive the enormous demand for copper in the coming years.

Renewable Energy Infrastructure

This versatile element is also a significant contributor to building renewable energy systems like wind turbines, solar panels, and power grids. It has excellent conductivity, durability, and recyclability making it ideal for the process of wiring in these systems.

Rapid Urbanisation

Certain countries like China and India are undergoing an infrastructural development phase which will only drive up the need for copper. These nations are increasingly focused on integrating their existing structures. This includes electrical wiring, plumbing, roofing processes, and more.

The ‘Copper Crunch’

The imbalance of any commodity will occur if the supply exceeds the demand or vice versa. Since the need for copper is growing, the supply aspect faces challenges – in fact there is a term for this trend: ‘The Copper Crunch’.

Many of the renowned mines in the world are ageing – for example, Chile’s Escondida mine. New projects are sedated, creating an imbalance. This is expected to push copper prices higher, thus making it a promising commodity.

Telecommunications Infrastructure

There is a notable rise in data centres, 5G-related projects, and cloud computing. Copper is an important element that is used in communication networks. In the name of improving such infrastructure, it is the underlying metal used to develop telecommunication cables to enhance data transmission.

The Top 3 ASX-listed Copper Shares to Watch

There are many copper-focused stocks listed on the ASX that stand to benefit from the ongoing demand for copper:

BHP (ASX: BHP)

BHP exhibits a strong copper portfolio which generated over 2Mt in FY25. This company already operates some of the world’s biggest mine, including Escondida in Chile and Olympic Dam and Oak Dam in South Australia. And evidently, BHP is hungry for more. It is bringing new projects in Argentina online, and seeking to expand its portfolio through M&A, buying Oz Minerals and going so far to buy AngloAmerican – only giving up when that company turned down a $70bn+ takeover offer.

Sandfire Resources (ASX: SFR)

Sandfire is another leading copper mining company listed on the ASX. After a decade or so of being a one trick pony with the DeGrussa deposit in WA, Sandfire is reinventing itself. Its flagship asset is the Marsa project in southwestern Spain. But it just opened a second mine, the Motheo Mine in Botswana back in August 2024. The company anticipates ramping up production fast to a 3.2Mtpa copper processing rate.

If you have any doubts about whether or not mining is welcome in Botswana, consider the fact that the country’s president came out to Australia to speak at the recent Africa Down Under conference earlier this year.

Investors have been cool on this company given fluctuating copper prices and high capex (paid for by debt) as it purchased these two projects and bought them ‘up to scratch’. After reporting a US$109m profit in FY22, it made two years of losses before returning to the black in FY25 with US$90m. It expects 152.4kt production in FY26 which would be up 12% from the year before. It is also adjusting to life after long-term boss Karl Simich departed.

Evolution Mining (ASX:EVN)

Investors are into Evolution Mining (ASX:EVN) because of its exposure to gold. But it also has exposure to copper and it is thus worth paying attention too.

Today its portfolio of mines include:

• Cowral and Northparkes in NSW (owning 80% of the latter)
• Ernest Henry and Mt Rawdon in Queensland,
• Mungari in WA,
• Red Lake in Canada’s Ontario province

Evolution has Mineral Resources of 30Moz of gold and 4.4Moz of copper. Ore Reserves at 11Moz gold and 1.4Mt of copper, representing an average mine life of 15 years. 8.9Moz is from Cowral, 2.8Moz from Ernest Henry, 7.2Moz (each) from Mungari and Red Lake, 1.1Moz from Marsden and 3Moz from Northparkes. For the year ahead, Evolution has guided to 710-780,000/oz gold and 70-80,000/t cu at an AISC of A$1,475-1,575 per ounce.

What about explorers?

15 years ago, Sandfire was another struggling explorer but never looked back when it discovered the DeGrussa deposit. There are dozens of small cap explorers hoping to have similar success but the odds are stacked against them. We wouldn’t totally advise against investing in explorers, but investors should caveat emperor (beware!) and not invest any more than they are willing to lose. Of course, that same principle goes with any company but particularly for small cap explorers where the risk is so high.

Why Copper Could Be the Next Big Commodity?

Copper is present in just about everything – from the smallest pieces of domestic wiring to huge machinery operating in industries. There are numerous reasons why copper can transform itself into the next biggest commodity, thereby fuelling ASX copper stocks in the market. Individual countries and the supply chain globally all stand to gain from the demand for copper.

With primary factors like the production of electric vehicles and the shift to the renewable energy sector, copper plays a crucial role in energy storage solutions. Beyond this, various infrastructural projects are underway through which companies are likely to expand their markets. So, it is essential to note that this metal is extremely multi-faceted, thereby fulfilling the demand in every aspect.

How to Invest in ASX-listed Copper Shares

Know these simple steps about investing on the ASX:

• Create an investment plan considering the brokerage account (broker fees) and individual stock price comparison.
• Investors can make informed investment decisions after seriously considering the trends in the markets and choosing the best companies
• Analyse the market capitalisation of the companies listed on the ASX.
• Make sure to watch out for the dividends payout of the company and take this into account when calculating potential returns.

Future Outlook of ASX Copper Shares

There is a promising future waiting for this commodity and companies in this space as it is driven by different technological and infrastructural advancements. There is a constant global push towards a more sustainable future. According to the International Copper Study Group (ICSG), global demand is expected to rise by a margin of 2.5% annually. This will cause a significant height of 28.5 million tonnes by 2030.

Supply, however, may struggle to keep up with this increase. As major mines like Escondida approach the end of their life cycles, and no large-scale replacements come online quickly enough, the risk of a potential deficit increases. Unless companies find a viable way to stay relevant and meet demand, a potential shortage in the market is possible.

Conclusion

With the global supply of copper expected to squeeze, prices as a result, may continue to rise, thus positioning the next big commodity on the ASX. The sector shows a promising investment despite of whether it is through direct individual investment in copper shares or ETFs. This is an ideal opportunity for investors looking to learn more about the copper industry and capitalise on the global transition to a greener future.