The underinvestment in copper over the past decade is causing supply problems now, at a time when prices have shot up and green initiatives create higher demand for the metal, says commodity analyst Reid I’Anson of market intelligence firm Kpler.

“A number of producers in this market has grown extremely conservative over the past decade. This has really caused underinvestment to kind of percolate through the supply chain, and obviously now that’s creating problems,” I’Anson told CNBC on Wednesday.

From electronics to home construction, copper is used extensively in manufacturing and demand for the metal is seen as an economic bellwether. Earlier this year, copper prices hit their highest level in a decade. So far this year, copper prices have risen about 21%.

“So a lot of these firms are now realizing that prices are higher and they want to take advantage, but the lead time to get new mines online is going to take quite a long time,” he said.

Looking ahead, the demand for copper is only going to pick up. One key factor is the drive toward sustainability as governments spend more on green initiatives, said I’Anson.