Copper: A vital player in the Clean Energy Revolution

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Copper: A vital player in the Clean Energy Revolution

Copper, once hailed as the "metal of the modern world," is making a powerful comeback to reshape the future of clean energy. With the soaring demand for renewable energy and electric vehicles (EVs), copper is set to take centre stage, accounting for over 25% of global demand in the next decade.

The remarkable shift is propelled by two key factors. Firstly, as the world embraces renewable energy sources like solar and wind farms, copper becomes indispensable for their infrastructure, from wiring and transformers to motors and generators. This surge in demand is a direct consequence of the global transition away from fossil fuels.

Secondly, the monumental shift from internal combustion vehicles to electric vehicles, coupled with the rise of charging stations, has exponentially increased the need for copper. According to S&P statistics, an EV requires at least 2.5 times more copper than a traditional gasoline-powered vehicle. With global EV sales expected to reach 70 million by 2040, the demand for copper dedicated to EVs alone is staggering.

Beyond EVs, the demand for copper is further intensified by the necessity for new public charging stations. In the United States alone, experts predict the need for over one million new stations by 2030. Each station, depending on charging speed, is estimated to utilise between 0.7 to 8 kg of copper, contributing to nearly 10% of global supply.

Recent developments underscore this growing trend in copper demand. Mining giant Glencore is investing $1.5 billion to expand copper production capacity, responding to the escalating needs of the clean energy sector. Similarly, BHP, a major player in mining, is strategically focusing on copper exploration and development, recognising its pivotal role in the energy transition.

While the evolving landscape of copper demand presents challenges, it also unfolds opportunities for growth in the copper industry. The International Energy Agency (IEA) predicts a 50% increase in global copper production by 2040 to meet the demands of advancing clean energy technologies. As copper takes on a pivotal role in shaping our clean energy future, the possibilities for both producers and related industries are boundless.