Spotlight

Copper plays a key role in the transition to a clean energy economy. From smart homes to electric vehicles and energy storage, copper’s versatility makes it applicable for a variety of energy-efficient and renewable energy sources. As global copper use in energy continues to rise, meeting the demand will require additional copper mining and recycling sources.

Emerging technologies and innovation have vastly improved copper mining output and reduced its environmental impact. On average, the Copper Alliance® members surveyed invest a combined $20 billion a year to improve their contribution to sustainable development in areas such as protecting the environment and ensuring the safety of operations.

The charts below, provided by the International Copper Study Group (ICSG), offer an overview of new copper mining projects and expansions to existing mines.

These figures show meeting the rising demand for copper is attainable, but investments and political stability are also needed. Click for more information on how the copper industry is prepared the future of copper demand.

Demand for copper is growing. It is expected to jump by as much as 50 percent over the next 20 years alone, and this growth is part of a wider trend. As the World Bank’s 2017 report, “The Growing Role of Minerals and Metals for a Low Carbon Future,” points out, we could see a ten-fold rise in demand for metals, including copper, by 2050 as the world moves toward a low carbon energy future.

Several long-term trends are presently driving growth in copper demand and are expected to continue to do so in the coming decades. These trends include increased consumer use of electronics, wider uptake of electric vehicles (EVs), increased use of renewable energy sources and energy efficiency—and all require significant amounts of copper to function.

Is there enough copper to meet this growing demand? Currently global copper reserves are estimated at 830 million tonnes (US Geological Survey [USGS], 2019), and annual copper demand is 28 million tonnes. Furthermore, according to USGS data, since 1950 there has always been, on average, 40 years of copper reserves available and over 200 years of resources, which include reserves, discovered and potentially profitable deposits and undiscovered deposits predicted based on preliminary geological surveys. These copper resources total 5,000 million tonnes (USGS, 2014 & 2017). In addition to the known reserves, it is worth noting that 35 percent of demand is met with recycled copper, significantly reducing the need for mined copper.

So, the data is clear. There is enough copper to meet current, and future, demand—even taking into consideration the expected growth in demand for copper in the coming years. While this shows copper will be there to enable more renewables and EVs, using copper to meet this demand needs to be done smartly and efficiently. To make sure this is the case, investment by industry will be required, as will political certainty and stability.

The copper industry is already investing significantly in innovation and sustainable solutions. On average, the members of the Copper Alliance® invest a combined $20 billion a year to improve their contribution to sustainable development in areas such as protecting the environment and ensuring the safety of their operations. This alone, however, is not enough. Although it is true that industry can, and should, do more to ensure copper is extracted, used and recycled in a sustainable way, there also needs to be political stability and a regulatory environment favorable for such investment.

Copper is found in more than 20 countries across the globe, with the world’s largest producers being Chile, Peru, China and the U.S., according to the International Copper Study Group (ICSG) in 2017. Extracting copper, therefore, is not reliant on one particular country or region, as is the case for other raw materials. This diversity translates into greater stability for the copper market and lowers the copper risk profile.

However, the stability of copper being produced in various regions needs to be matched with political certainty and stable permitting conditions if copper is to be extracted and processed efficiently and sustainably. Issues like permitting processes, which are often slow for existing mines to expand to meet growing copper demand, could be better streamlined and would benefit from more political certainty.

Political certainty and a stable permitting framework also ensure environmental standards and community engagement are implemented and upheld by industry.

Recycling and the circular economy must be considered when talking about meeting future copper demand. Copper is currently recycled at significant rates. ICSG estimates that, on average, 35 percent of global copper use came from recycled copper. By its nature, copper is a circular material as it does not lose quality when it is reused for another function. Not only will recycling more copper help to meet demand, but it will also make the industry even more sustainable and conserve more of the planet’s natural resources.

Despite already significant recycling rates, the copper industry can go further. There is still untapped potential for the industry to recycle. This is an economic opportunity the industry must seize, helping to sustain their own operations but also creating a more sustainable economy long term.

While the copper industry’s significant recycling rate and potential for even more recycling are impressive, recycling alone will not be enough to meet demand and ensure a stable supply of copper. Continued mining for new copper will be needed. The solution to meeting the growing demand sustainably is a combination of the two, an efficient and sustainable mining framework with proper environmental standards and high recycling rates to get the most out of the copper currently on the market.

Even as demand continues to grow due to consumer and industry trends, the stable supply of copper will endure. However, how this supply of copper is used and extracted still depends on other factors. To maintain this stable supply in an efficient and sustainable way, there must be investment from industry and the political stability necessary to allow this investment to happen. This does not mean higher recycling rates and a more circular industry are not needed. Both components are vital for the long-term stability and sustainability of the industry, and we must take a holistic approach to these issues to guarantee a viable and responsible copper industry for many years to come.

*Photo provided by Teck Resources.

2018 was a great year for clean energy and mobility. To give a few examples: Countries agreed on an implementation plan for the Paris Agreement at COP24. The EU launched initiatives to develop a European supply chain for batteries. The United States was awarded about $35 million for research and innovation that would significantly reduce building energy consumption.[1]

As we look forward to 2019, the copper industry will be watching these top key trends.

1. Rise of electric SUVs

Until recently, pure electric vehicles have consisted mostly of small cars or hatchback models, but with the introduction of the Tesla Model X, vehicle manufacturers are creating larger family cars with the benefits of EV technology. With manufacturers such as BMW, Audi and Volvo following suit, announcing their plans to release at least four new electric SUVs, 2019 is expected to be the year of the electric SUV.[2]

Additional—and larger—EVs mean a greater demand for copper, as copper usage in EVs is dependent on battery size. Compared to an EV car, electric SUVs require a maximum of 100 kg (220.5 lbs.) per vehicle. With global copper demand expected to reach $172 billion by 2023—EVs are predicted to need an additional 600,000 tonnes of copper.

Government regulatory support and public investment in related technologies is key to EV growth. We have seen this trend in Latin America, where countries like Chile continue to invest in technologies supporting copper and EVs. Significant incentives and mandates by China’s governing National People’s Congress continue to further propel China as the leader in energy-saving and green-vehicle technology. Bloomberg New Energy Finance reported that, in 2017, close to 400,000 electric buses were operating around the world—99 percent of which were in China.[3] Furthermore, the report estimates China adds about 9,500 EV buses every five weeks—the size of London’s entire bus fleet.

With public-private partnerships, government regulatory support and consumer demand, 2019 is the perfect climate for electric SUVs to be produced and sold at record numbers.

2. Global electrification

According to the World Energy Outlook, growing electrification means electricity is expanding to sectors previously confined to fossil fuels, including vehicles and heating and cooling systems.[4] Countries continue to pivot away from conventional energy sources, supported by massive private sector investment into low-carbon energy. 2018 marked the fifth consecutive year clean-energy investment exceeded $300 billion.[5] 2019 is expected to be close to reaching $300 billion for the sixth successive year. However, Bloomberg New Energy Finance predicts that economic and political troubles during 2019 may influence the flow of investment in low-carbon energy, but it will not halt its progress for cities and communities globally.

China remains at the heart of this energy revolution as the world’s largest producer, consumer and investor in renewable energy. The country is upgrading its capacities in renewable energy production and consumption and accounts for 36 percent of all renewable energy growth worldwide.[6] During the first half of 2018, China’s hydro, nuclear, wind, solar and other nonfossil energy systems generated more than 25 percent of its overall power supply. China will remain a leader in electrification in 2019 as its Thirteenth Five-Year Plan prioritizes renewable energy development.

The best part of growing electrification is that the technology already exists. For example, highly efficient heat pumps transfer heat from one space to another, achieving efficiencies of well over 100 percent.[7] A report from the U.S. National Renewable Energy Laboratory forecasts that more than 170 million heat pumps will provide space heating and cooling in homes by mid-century.[8] Heading into 2019, utility programs are expected to increase their focus on accelerating the adoption of heat pumps for both water and space heating/cooling.

In 2019, the copper industry will be monitoring proper investment initiatives to finance on-the-ground activities in developing countries of critical importance, as they represent one-billion new electricity consumers by 2030.[9] Since the technology already exists, assisting these countries and their growing middle class will ensure a low-carbon and sustainable solution.

3. Mainstreaming of supply chain sustainability

Sustainable production is becoming more prominent in the minds of consumers. 2019 is shaping up to be the year for accountability. Most major companies listed on CAC 40, FTSE100, Dow Jones and other major exchanges already have comprehensive sustainability reporting systems in place. However, expectations for these companies go beyond annual reports and investment portfolios.

Consumer electronic companies, auto manufacturers and major retailers, among others, are going green through their certified sourcing programs and are working increasingly close to their supply chains to help achieve sustainability goals. Walmart pioneered much of this work over a decade ago, with its successful pledge in 2005 to reduce its fuel footprint by doubling fleet efficiency by 2015, and its 2007 agreement with suppliers such as Proctor & Gamble to start selling smaller and more efficient products. In 2019 we may see a new level of mainstreaming this value-chain thinking.

For the ninth-year running, global mining company, Teck Resources, has been named to the Dow Jones Sustainability World Index. Teck is putting its approach to sustainable mining into action near Pica, in the Tarapacá region of northern Chile. During Phase 1 of the Quebrada Blanca project (QB1), Teck committed to increasing its renewable energy use to 100 megawatts (MW) by 2030 to reduce its carbon footprint. In Phase 1, Teck partnered with AES Gener S.A., a top Chilean electricity producer, to develop a power plant with a unique design to utilize solar, wind, hydro and biomass and a 21 MW capacity delivering a full 55-gigawatt hours (GWh) per year. As Teck extends this work in to Phase 2 (QB2), the solar plant will be instrumental to helping the company reach its goals and enhance the sustainability of the supply chain.

Conclusion

2019 presents major opportunities for clean energy and the copper industry. Copper has a key role to play in the development and rollout of new technologies leading to a more sustainable economy, such as EVs and global electrification. With outstanding conductivity, copper significantly enhances the efficiency of electrification, making it an indispensable component in developing renewable energy. The copper industry is also at the forefront of the move to more responsible supply chains and recycling. This shift is relevant for all downstream businesses and consumers who are reliant on copper every time they use an iPhone. We are excited for the challenges 2019 brings and for copper to be part of the solution.

[1] Department of Energy Announces $34 Million for Innovation Building Technologies Research and Development. (2018, April 27). Retrieved from https://www.energy.gov/articles/department-energy-announces-34-million-innovation-building-technologies-research-and

[2] Evarts, E. C. (2018, July 03). 2019 is the year of the electric SUV. Retrieved from https://www.greencarreports.com/news/1117536_2019-is-the-year-of-the-electric-suv

[3] Electric Vehicle Outlook 2018 | Bloomberg New Energy Finance. (n.d.). Retrieved from https://about.bnef.com/electric-vehicle-outlook/

[4] World Energy Outlook 2017. (n.d.). Retrieved from https://webstore.iea.org/world-energy-outlook-2017

[5] Clean Energy Investment Exceeded $300 Billion Once Again in 2018. (2019, January 16). Retrieved from https://about.bnef.com/blog/clean-energy-investment-exceeded-300-billion-2018/

[6] PNN.com (2018, July 31). “China Leads the World in Renewable Energy Consumption.” Retrieved from http://www.cpnn.com.cn/xny/201807/t20180731_1082473.html

[7] Heat Pump Systems. (n.d.). Retrieved from https://energy.gov/energysaver/heat-pump-systems

[8] Gerdes, J. (2018, July 30). ‘Electrification of Everything’ Would Spike US Electricity Use, but Lower Final Energy Consumption. Retrieved from https://www.greentechmedia.com/articles/read/widespread-electrification-could-increase-u-s-electricity-consumption

[9] World Population Prospects – Population Division. (n.d.). Retrieved from https://esa.un.org/unpd/wpp/Publications/Files/WPP2017_KeyFindings.pdf

What material can contribute to green and healthy buildings in 128 different ways?

Copper.

Creating a smart, sustainable world starts with buildings. An impressive and dynamic array of designs, technologies and products are available to support smarter green and healthy buildings. By using copper, the sustainable building community will create structures with features that not only preserve the integrity of the environment but also promote occupant health and wellbeing.

 

Learn How to Get Credit with Copper

From improving air quality to saving water, occupants and owners will benefit from a green and healthy building constructed with copper. With an infinite lifecycle, antimicrobial properties, high electrical conductivity and a dynamic range of uses, copper’s 128 uses in commercial building construction help to achieve one-third of the 420+ credits, features and provisions recognized within LEED version 4, WELL version 1 and ASHRAE 189.1.

The Copper Alliance® released a guide on the essential role copper plays in buildings. This covers everything from electric vehicle charging to solar glare control—with plenty of applications in between.

Learn how to get credit with copper and read the full guide