Copper: a key element in the Energy Transition

Thanks to its exceptional electrical and thermal conductivity, copper is an essential component in all electrification-related technologies. From distribution networks, solar modules and wind turbines to electric vehicles and batteries — this metal is present in every step towards a cleaner future.

Copper is a metal with exceptional properties: high electrical conductivity, ductility, and corrosion resistance. These qualities make it irreplaceable in numerous industrial applications, especially in the context of global electrification.

For example:

• Smart grids, essential for managing the variability of renewables and distributed consumption, require copper to ensure efficient and safe transmission.
• In wind turbines and photovoltaic modules, copper is key in generators, inverters, transformers and storage systems.
• An electric car can contain up to 80 kg of copper — more than twice that of a combustion engine vehicle.
• In charging infrastructure, each new charging point and distribution system increases the demand for this metal.
• Emerging technologies such as artificial intelligence and energy storage depend on copper for efficient operation.

In short, copper is irreplaceable. Its high electrical and thermal conductivity makes it an essential element in the generation, distribution and storage of clean energy.

The importance of copper is such that global demand is expected to increase by 40% by 2040. The issue is that supply is not keeping pace. Depleting reserves, high extraction costs, geopolitical instability in key producing regions, and long development times (up to 25 years to open a mine) are creating a bottleneck.

In this context, the UN, through its trade and development body (UNCTAD), has issued a strong warning: the world is facing a potential copper shortage that could slow the advance of clean energy and digital infrastructure. In its Global Trade Update report published on 6 May 2025, copper is described as “the new strategic raw material” for the green and digital economy — vital to critical technologies.

According to UNCTAD, meeting current forecasts would require the opening of 80 new mines and investment of at least 250 billion US dollars by 2030.

The report states that over 50% of global copper reserves are concentrated in just five countries: Chile, Peru, Australia, the Democratic Republic of Congo, and Russia.

However, the added value of copper is generated far from these territories. Currently, China refines 45% of the world’s copper after importing 60% of the extracted ore.
This highlights a deep structural inequality: producing countries remain stuck in the export of raw materials without sufficient industrial capacity to process them, while importing nations dominate processing and added value.

Tariff progressivity is also a barrier: refined products are subject to lower tariffs (2%) than processed ones (8%), which discourages producer countries from investing in modernisation and industrialisation.

In this scenario, copper recycling emerges as a key opportunity. In 2023, one in every five tonnes of refined copper (4.5 million tonnes) came from secondary sources. The United States, Germany and Japan lead exports of copper waste and scrap, while China, Canada and South Korea are the top importers.

Investing in recycling infrastructure and professional qualifications can help these countries climb the value chain, developing their own industries instead of relying solely on the export of raw minerals.

Faced with the potential copper shortage, UNCTAD is urging governments to adopt smarter trade and industrial strategies. Some of its proposals include:

• Simplifying permits for new mining operations.
• Reducing tariff barriers to encourage local processing.
• Promoting regional value chains.
• Expanding recycling capacity.
• Investing in skills and infrastructure to process copper locally.

Beyond its technical role, copper also has a strategic dimension. Its recyclability, durability, and energy efficiency make it a material aligned with the principles of the circular economy. Reusing and recycling copper helps reduce the environmental footprint associated with its extraction and processing, contributing to a more sustainable model.

Ultimately, copper is much more than just an industrial resource: it is a key enabler of the energy transition. It is indispensable to transport electrification, renewable generation, and grid modernisation. If we want to move towards a cleaner, more efficient and resilient energy model, a robust copper strategy will be essential.