The price of copper is at its highest point since 2014.

The red metal’s price rose from the latter part of 2016 and all of 2017. You can see what I mean from the chart below:

The shift to electric vehicles will be a major driver of this trend going forward. According to Reuters, an industry report stated that the electric vehicle revolution will drive a “nine-fold increase in copper demand” from the automobile sector.

The number of electric vehicles (cars and buses) will rise from 3 million in 2017 to 27 million in 2027. That will drive demand for the metal from 185,000 metric tons per year to 1.74 million metric tons in 2027.

The car sector will go from using less than 1% of the world’s copper supply to 7% (assuming today’s production level).

We are going to need a lot more over the next 10 years to make up for that completely new demand.

The Next Phase in Copper’s Rally

What’s more, that demand will arrive just as the world’s economies come out of a long slumber. In 2016, the world’s GDP grew at 2.44%, the lowest rate since 2009.

However, there are signs that global growth is improving.

Oil demand is up which means copper demand should be too.

There’s an old saying about copper being the metal with a Ph.D. in economics. What that means is that copper is extremely sensitive to economic growth.

If the world is doing well, demand for copper goes up. As demand rises, so does the price. And demand has been surging this year, driving copper’s stellar rally.

However, in the near future, we see a brand-new source of demand on the horizon.

If you haven’t gotten into this market yet, you need to. This metal’s run is only just beginning.