As the world shifts towards a cleaner, electrified future, one metal stands at the forefront of this transformation: copper. Revered for its unmatched electrical conductivity, durability, and recyclability, copper is the backbone of numerous clean energy technologies, from wind turbines to electric vehicles. However, critical questions arise as demand for this vital resource grows exponentially. In a recent webinar we discussed U.S. Copper Supply and Demand and the S&P Global Study that was done to answer the question: Do we have enough copper to meet the future's needs, and how can we secure its supply responsibly?
The Demand Surge for Copper: A Snapshot
The global drive towards net-zero carbon emissions hinges on widespread electrification—replacing fossil fuels with renewable energy systems and electrified infrastructure. This electrification demands vast amounts of copper. According to projections by S&P Global, U.S. copper demand is expected to double by 2035, driven by:
Copper's unique properties, particularly its superior electrical conductivity and corrosion resistance, make it indispensable in these applications. Its unparalleled ability to transmit electricity efficiently reduces energy losses, a critical factor in clean energy systems.
Domestic Copper Supply: Challenges and Opportunities
The United States sources copper through three main channels: mining, recycling, and imports. While domestic mining and refining currently contribute over half of the U.S. refined copper supply, the rest relies heavily on imports from Chile, Peru, and Canada.
The U.S. boasts hundreds of millions of tons of untapped copper reserves, primarily located in Arizona and other western states. Despite this abundance, mining faces significant hurdles:
Copper’s 100% recyclability offers a sustainable way to bolster supply. However, secondary copper production has declined drastically in the U.S. over the past two decades, now accounting for less than 6% of refined production. Much of the nation's scrap copper is exported, representing a lost opportunity to bolster domestic supply.
Approximately 98% of U.S. copper imports come from free trade agreement partners, with Chile alone supplying 69%. However, reliance on imports presents risks:
Addressing the Supply Gap: A Multi-Pronged Approach
To meet the surging demand for copper, the U.S. must adopt a comprehensive strategy encompassing mining, recycling, and imports.
Expedited permitting processes and increased investment in refining capacities are essential. If operational hurdles are overcome, large-scale projects like the Pebble and Resolution mines, which collectively represent half of untapped U.S. copper reserves, could significantly enhance domestic production.
Improving collection and processing rates for post-consumer copper scrap is critical. Policies incentivizing recycling and investments in secondary refining infrastructure could repatriate billions of dollars worth of exported scrap.
While domestic production ramps up, continuing to source copper from free trade agreement partners will be vital. Ensuring sustainable practices in these imports aligns with U.S. environmental and ethical standards.
Adding copper to the U.S. Geological Survey’s (USGS) Critical Minerals List could expedite permitting processes, attract investments, and prioritize research and development for efficient extraction and recycling technologies.
As we transition into what the Copper Development Association calls "Copper Age 2.0," the importance of this metal cannot be overstated. However, meeting future demand will require overcoming entrenched challenges:
Copper is not just a material; it’s a symbol of progress and sustainability. Its role in driving the clean energy transition places a collective responsibility on policymakers, industry leaders, and consumers to ensure its availability and use are managed wisely.
Conclusion: A Call to Action
The U.S. has the resources, technology, and partnerships needed to secure its copper supply for decades. However, an all-of-the-above approach—encompassing increased domestic mining, expanded recycling, and reliable imports—is imperative to meet the challenges ahead. Adding copper to the USGS Critical Minerals List could serve as a pivotal step in fortifying America’s position as both a leading consumer and producer of copper.
The stakes are high, but the rewards—clean energy, sustainable development, and economic resilience—make the effort worthwhile. As we electrify our future, let’s ensure copper remains a cornerstone of that journey.