‘Every country needs copper’, and China foresight offers an edge in green push

China-based mineral company Ferro Resources has warned that while China remains competitive in the supply chain of rare earth metals, there are concerns around the availability of copper and nickel. Founder Dario Pong noted that China has been working to secure these minerals, as government emphasis on the supply chain of critical materials increases. Pong also highlighted that the US has resumed mining and refining operations at a former rare earth-processing facility, but the operational costs will be significantly higher than in China.

Source: Link

FAQ: ‘Every country needs copper’, and China foresight offers an edge in green push

1. Why is copper considered essential for every country?

Copper is vital for various industries, especially in the green technology sector, because of its electrical conductivity and durability. It is a key component in renewable energy systems, such as solar panels and wind turbines, and is also crucial for electric vehicle (EV) manufacturing.

2. How does China's foresight give it an edge in the green technology push?

China has recognized the importance of copper in the green technology revolution and has established strong ties and supply chains to secure copper resources. This foresight potentially provides China with a competitive advantage in the rapidly growing green technology market, positioning it as a leading player in the transition to sustainable energy.

3. What role does copper play in the green technology sector?

Copper is a "big-ticket item" in the green technology supply chain due to its excellent electrical conductivity, which is essential for efficient power transmission. It is also a critical component in various green technologies, including EVs, renewable energy infrastructure, and energy-efficient building materials.

4. How is the global demand for copper expected to change in the near future?

The global demand for copper is set to soar as the world shifts towards a greener economy with increased reliance on renewable energy, electric vehicles, and energy-efficient technologies. This increased demand will likely put pressure on copper supplies and drive innovation in recycling and mining practices.

5. Does Europe have concerns about the supply of copper and other critical raw materials?

Yes, Europe is aware of the increasing demand for critical raw materials like copper and is concerned about its heavy dependence on imports, which are often from countries with quasi-monopolistic production. The European Union is seeking to ensure a secure and sustainable supply of these materials as they are crucial for the green transition.

6. What measures are being taken to address the concentration of critical raw material production?

International organizations and entities such as the EU and OECD are highlighting the risks posed by the increasing concentration of critical raw materials production in a few countries. They are advocating for diversified supply chains, increased recycling, and investment in sustainable mining practices to mitigate these risks and support the green transition.

Sources:

• South China Morning Post articles related to China's advancement in the green technology sector and copper's significance.
• European Commission press releases on critical raw materials.
• OECD newsroom insights on the supply and risks of critical raw materials.