Copper stands as a cornerstone in the realm of strategic mineral resources, functioning as a vital fundamental raw material for both national economies and societal advancementThe pursuit of carbon neutrality has catalyzed a surge in copper usage, particularly in the sectors of new energy vehicles (NEVs) and renewable energy sources like wind and solar powerThis trajectory implies that copper consumption is currently enmeshed in a flourishing phase, propelled by the burgeoning demands of the new energy industryNot only does this escalating demand necessitate an increase in copper production, but it also compels copper industries to innovate and upgrade, refining the performance of copper materialsLooking toward the future, it is evident that the development of the new energy sector will have profound, lasting effects on the copper industry.

Copper is renowned for its remarkable conductivity, malleability, durability, and resistance to corrosion

Historically, its applications were largely confined to construction, infrastructure, industrial manufacturing, and transportation, resulting in a relatively stable consumption structureHowever, since 2016, there has been a noticeable upswing in copper demand from industries focused on new energy, such as NEVs and photovoltaics, marking a pivotal shift in its utilization.

In recent years, China’s copper processing industry has demonstrated steady and positive growthIn 2023, the output of copper processing materials reached an impressive 20.85 million tons, reflecting a 3.0% increase compared to the previous yearProduction across various categories continues to rise, and net exports of copper processing materials soared to 320,400 tons, achieving a historical highEmerging industries are playing a significant role in this trend, with sectors such as artificial intelligence, robotics, and green energy now acting as primary engines for driving copper consumption.

Taking the new energy industry as a noteworthy example, the distinct characteristic of high copper density stands out

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In fact, the amount of copper utilized in new energy vehicles is four times that of traditional automobilesAdditionally, the copper density required for generating electricity through renewable sources is estimated to be two to three times greater than that required for conventional fossil fuel-based power generation.

Experts from the International Renewable Energy Agency, including Louis Hanel, highlight the current energy mix, where electricity constitutes about 20% of overall energy useLooking toward the middle of this century, a significant push toward cleaner energy transitions and the electrification of pivotal sectors like transportation and industry is expected to elevate this figure to an impressive 51%. Given that copper is fundamentally critical for the expansion of electric power systems, the demand for this metal is set to continually escalate.

Beyond the quantitative increase in demand, the development of the new energy sector also imposes new performance requirements on copper materials

For instance, the motors, battery management systems, and other electrical components within new energy vehicles necessitate efficient current transmission, thereby calling for copper materials with superior conductivityConcurrently, as the level of electrification advances, expectations surrounding the purity, consistency, thinness, and high-precision processing of copper materials have become increasingly stringent.

In response to this evolving landscape, the copper processing industry is accelerating its transition and upgrade processesTaking Fuzhou City in Jiangxi Province, a prominent hub for copper production, as an illustration, the deep processing rate of its copper processing industry has surged from below 10% in 2020 to an impressive 51% by 2023. The region has built a developmental framework led by significant players like Jinpin Copper and Copper Bo Technology, striving to create a new material industry base centered around high technology, intelligence, and environmental sustainability.

Chen Peirong, director of the New Materials Industry Office in Fuzhou's High-tech Zone, revealed plans to leverage the Fuzhou New Energy Vehicle Industrial Park as a lead, focusing on high-quality upstream copper and aluminum smelting, midstream plate and foil processing, and downstream copper and aluminum-based new material end products

This initiative aims to introduce various projects involving composite copper foil, high-voltage wiring harness connectors, aluminum-magnesium alloys, and automotive aluminum alloy ingots and bars, thus creating an advanced industrial cluster centered around functional copper materials.

As the demand for copper in the new energy sector escalates rapidly, the global copper industry chain faces new challenges regarding stability and price rationalityIt is essential for the copper industry to expedite the development of new productive forces, thereby securing a proactive role in its growth and gaining new competitive advantages.

Ge Honglin has suggested that in relation to copper materials, it is important to construct a robust R&D system for efficient copper functional materialsThis includes enhancing material performance while simultaneously achieving reductions in usage and promoting recycling efforts