Hambrox Ltd
30 Oct 2025
Copper, with its properties as an excellent electrical conductor and a corrosion-resistant metal make it indispensable in the green energy revolution.
Copper is essential to the global energy transition due to its high conductivity, making it a vital component for renewable energy generation (wind, solar), electric vehicles (EVs), and upgraded power grids. The global shift to cleaner energy and electrification is significantly increasing copper demand, but supply is being constrained by challenges such as declining ore grades, long lead times for new mines, and geopolitical instability, which is contributing to a growing supply-demand gap.
Key roles of copper in the energy transition:
Renewable energy:
Copper is a critical material for building and maintaining renewable energy infrastructure, including wind turbines and solar panels.
Electric vehicles (EVs):
EVs use significantly more copper than traditional internal combustion engine vehicles. The motors, batteries, and charging infrastructure for EVs all require large amounts of copper.
Power grids and infrastructure:
Copper is needed to upgrade and expand the electrical grid to handle new sources of power and to manage the increased demand from electrification.
Energy efficiency:
Copper is also used in energy-efficient technologies such as LED lighting and heat pumps, as well as smart grid technologies that help conserve energy.
Challenges and future outlook:
Supply constraints:
The demand for copper is outpacing supply growth, which is hampered by factors like declining ore grades, difficulties in permitting new mines, and a lack of new discoveries.
Geopolitical factors:
Key copper-producing nations face regulatory, political, and environmental challenges, which can disrupt the supply chain.
Recycling:
Increased recycling of copper is seen as a crucial way to help close the gap between supply and demand, especially as it's a highly recyclable material.
Digitalization:
Beyond the energy transition, copper demand is also rising due to the growth of digital infrastructure, including data centers required for AI, which adds further pressure on the supply chain.
