Copper is a vital strategic mineral resource and an essential raw material for national economic and social development. Under the goal of carbon neutrality, the rising demand for copper in new energy sectors like electric vehicles and renewable energy (wind and solar) marks a shift into a favorable consumption cycle for copper. The growth of the renewable energy industry not only increases demand for copper materials but also drives copper companies to upgrade and enhance material performance. In the long term, the renewable energy sector will profoundly impact the copper industry.
Copper is highly conductive, malleable, durable, and resistant to corrosion. Historically, it has been mainly used in sectors such as construction, infrastructure, manufacturing, and transportation, with a relatively stable consumption structure. However, since 2016, copper usage in new energy sectors, including electric vehicles and photovoltaics, has surged.
Ge Honglin, the Secretary of the Party Committee and President of the China Nonferrous Metals Industry Association, noted that China’s copper processing industry has maintained steady growth. In 2023, the production of copper processing materials reached 20.85 million tons, a 3% increase year-on-year, with ongoing growth across various product categories. Net exports of copper processing materials hit a record high of 320,400 tons. Emerging industries, such as artificial intelligence, robotics, and green energy, are becoming major drivers of copper consumption.
For instance, the new energy sector is characterized by high copper density—copper usage in electric vehicles is four times that of traditional cars, and in renewable energy generation, it is two to three times that of fossil fuel generation.
Luis J. Hañero, an expert from the International Renewable Energy Agency, stated that electricity currently accounts for about 20% of global energy usage. To meet the Paris Agreement goals, this share must rise to 51% by mid-century, propelled by the transition to clean energy and the electrification of key sectors like transportation and industry. Copper is a fundamental material for expanding electrical systems, and its demand will continue to grow.
Beyond quantity, the development of the new energy sector imposes new requirements on copper materials. Electric motors, battery management systems, and other components in electric vehicles require efficient current transmission, necessitating excellent conductivity in copper materials. Additionally, as electrification levels rise, the demands for material purity, consistency, thinning, and high-precision processing become increasingly stringent.
In this context, the copper processing industry is accelerating its transformation. For example, in Fuzhou, Jiangxi Province, the rate of deep processing in the copper industry increased from less than 10% in 2020 to 51% in 2023. This has fostered a development landscape led by Jinpin Copper Technology and Copper Bo Technology, striving to create a high-tech, intelligent, and environmentally friendly copper-based new materials industry base.
Chen Peirong, Director of the New Materials Industry Office in Fuzhou’s High-tech Zone, revealed that the next steps will focus on upstream high-quality copper and aluminum smelting, midstream plate and foil processing, and downstream copper and aluminum-based new material terminals. Key projects include composite copper foil, high-voltage harness connectors, aluminum-magnesium alloys, and automotive aluminum ingots and rods, aimed at building an advanced copper functional materials industry cluster.
As demand for copper in the new energy sector rapidly grows, the global copper industry chain faces new challenges regarding stability and price rationality. The copper industry must accelerate the empowerment of new production capabilities to gain a competitive edge and take the initiative in development.
Ge Honglin suggested that in terms of copper materials, an efficient research and development system for functional copper materials should be established, focusing on enhancing material performance while achieving reduction and reuse, thus breaking through raw material supply bottlenecks. The industry should target high-end copper strips, foils, and microfine wires that are dependent on imports, increasing R&D efforts to achieve more import substitution. Emphasis should be placed on functional copper materials critical to strategic emerging industries, such as new energy, next-generation information technology, high-end equipment manufacturing, new materials, intelligent and electric vehicles, and energy conservation and environmental protection.
