Copper — A Strategic Resource of the Modern Economy

Demand for copper is growing due to the rapid development of electric vehicles and clean energy. Amid the climate crisis, copper has become indispensable for batteries, wind turbines, solar panels, and power transmission lines. However, the reserves of rich copper ores are shrinking, and the increasing cost of extraction heightens the need for recycling, which still accounts for less than 20% of global production.

+30%

projected price growth by 2030

up to

99.9%

pure copper quality

Unique Properties, Applications, and Global Reserves of Copper

Copper boasts high thermal and electrical conductivity, corrosion resistance, and antimicrobial properties, making it invaluable across many sectors, from electronics to healthcare. When alloyed, copper gains new properties and is used in specialized applications. For example, brass (copper with zinc) is popular in plumbing and decorative items, while bronze (copper with tin) is widely used in shipbuilding and medals.

Current global copper reserves are estimated at 830 million tons, with identified resources reaching up to 3.5 billion tons, which could increase with new geological discoveries. In 2023, global copper production reached 22.2 million tons.

Where Copper is Used

According to the International Copper Association (ICA), key sectors consuming copper include:

30%

Machinery and Engineering

For equipment and technology production.

25%

Construction and Infrastructure

For electrical, water supply, and wiring systems.

20%

Energy and Renewables

Particularly for solar panels, batteries, and turbines.

15%

Transportation

Mainly in electric vehicles. By 2030, copper consumption in this sector may triple due to the growing production of electric vehicles.

30%

25%

20%

15%

30% - Machinery and Engineering

For equipment and technology production.

25% - Construction and Infrastructure

For electrical, water supply, and wiring systems.

20% - Energy and Renewables

Particularly for solar panels, batteries, and turbines.

15% - Transportation

Mainly in electric vehicles. By 2030, copper consumption in this sector may triple due to the growing production of electric vehicles.

Thus, copper remains an essential resource for high technology and the green economy

End Users of Copper

Electric vehicles contain approximately four times more copper than conventional vehicles. Copper is used in batteries, electric motors, wiring, busbars, and charging infrastructure. The larger the vehicle, the more copper is required: a fully electric bus contains 11-16 times more copper than an internal combustion engine (ICE) car.

Equipment

31%

Equipment

31%

Building Construction

28%

Building Construction

28%

Infrastructure

16%

Infrastructure

16%

Transport

13%

Transport

13%

Industry

12%

Industry

12%

Copper Content in Vehicles

As of 2024, the total number of electric vehicles worldwide has reached approximately 64 million units. This growth is driven by an increase in electric vehicle sales, which are expected to reach around 17 million units in 2024, a 20% increase compared to the previous year.

Battery Electric Bus

Hybrid Electric Bus

Battery Electric Vehicle

Plug-In Hybrid Electric Vehicle

Hybrid Electric Vehicle

Car

Copper Consumption in the Production of Electric Vehicles and Automobiles

The electric vehicle market will eventually require over 3 million tons of copper. By 2030, over 20 million EV charging points are expected to be deployed worldwide, which will drive copper consumption for charging stations to increase by 150% compared to 2024 (each standard charging point requires around 10 kg of copper, while fast chargers use up to 50 kg, and superchargers – over 100 kg).

Annual Copper Consumption in Passenger Electric Vehicle and Car Production, in Million Tons:

Electric Vehicles

Automobiles

Copper demand continues to grow in 2024, particularly in high-tech sectors, creating a shortage of around 400,000 tons.

China, consuming half of the world’s copper, maintains stable demand and supports its price. The market has also seen a decline in LME copper stockpiles, further driving up prices. Copper production volumes are projected to reach 26.5 million tons in 2024, but capacity utilization remains at 85%, limiting production expansion.

Will Copper Run Out Soon?

This is highly unlikely. Since 1950, copper reserves have consistently averaged around 40 years, while identified resources are even greater (USGS data). Additionally, recycling, innovation, and ongoing mineral exploration ensure the long-term availability of copper.

Despite rising demand for mined copper, its estimated reserves have increased, and there is now more accessible copper in the world than ever before.

Factors Restraining the Increase in Copper Mining

A number of economic, environmental, and political challenges complicate the expansion of production, increase costs, and create risks for investors and producing countries.

Ore Quality Decline

This is a major issue, particularly in established copper-producing regions like the U.S. and Chile.

Project Financing

Long-term economic and price volatility significantly affect capital costs.

Water Supply

This remains a critical issue in many arid regions.

Energy Sources

Coal is the preferred fuel for major copper mines and processes, but climate policies are driving up extraction costs.

Environmental Concerns

Governments increasingly recognize the environmental impact of mining. In countries like Peru and the Philippines, relations with indigenous communities have become crucial for project development.

Resource Nationalism

Some governments prioritize developing previously untapped mineral resources to generate revenue, with high royalties/taxes potentially impacting investments in new projects.

Political Risks

Security and transport access are essential for mine operations today.

Limitations of the Closed-loop Copper Cycle

Copper has a significant advantage in overcoming supply disruptions. It is one of the few raw materials that can be recycled without losing its properties.

While all these factors support a gradual shift to a more sustainable economy, copper's life cycle cannot be fully closed for two reasons:

Increase in Demand

Demand will continue to grow due to population increase, innovation, and economic development.

Durability of Copper

Copper has a long life cycle, often remaining in use in devices and structures for decades.

Thus, meeting future demand will still require a combination of primary copper from mines and secondary copper from recycled scrap.

Challenges in Copper Mining

Global non-ferrous metal mining faces challenges related to low-grade and hard-to-access ores. These factors significantly affect the profitability of mining and the financial condition of companies.

01

Decline in Mining profitability

In countries with low metal content in ores, mining profitability decreases, especially when metal prices are low. This leads to a deterioration in the financial performance of companies.

02

Low Copper Content in Ores

The copper content in chalcopyrite ores can be as low as 13-18%, while copper porphyry ores yield 28-35% of the metal. This creates significant challenges for copper extraction.

03

The Need for Innovation

Increasing copper extraction from such ores requires the implementation of technologies and investments in R&D, which increases costs and makes the mining process more expensive.

04

Inaccessibility of Deposits

Copper deposits are often located in remote or hard-to-reach areas, requiring significant investments in infrastructure. This increases logistical costs for transporting raw materials and products.

Recycling as a Solution

These issues increase the need for copper recycling, as limited natural reserves and rising costs require more active use of secondary copper. Recycling helps reduce dependence on new deposits and minimizes environmental impact.

Secondary Copper

Copper is one of the most recyclable metals. Copper recovered from scrap (also known as secondary copper) is identical to primary copper (produced from mineral ore). The share of secondary copper production has been steadily, albeit slowly, increasing, reaching 13% in smelting and 17% in refining.

Secondary recycling of copper enhances the efficient use of this metal, saves energy, and conserves resources for future generations.

Copper in the production and distribution chain:

Investments in recycling and the implementation of new technologies ensure more efficient resource use and help maintain demand for the metal, despite issues with its extraction

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