(AmericanProsperity.com) – Western countries have been speaking out about diversifying the copper supply chain and derailing China’s dominance in the industry. However, they are looking for ways to delay the energy transition because replacing China as a whole would be “unfeasible.”
China has been a leader in the copper supply chain.Copper has served as an important component in many emerging technologies over the years, especially with renewable energy, electric vehicles, and energy storage. Canada, the United States, Australia, and European Countries are looking to displace the country’s hold on the copper industry.
Wood Mackenzie, a provider of data for energy transition, stated that this might be harder than expected, especially when looking at decarbonization. WoodMac stated, “Hundreds of billions of dollars in new copper processing and fabrication capacity would be required to replace China.”
It added, “This would create inefficiencies that would result in significantly higher-priced finished goods and increase the cost and timeliness of the energy transition.”
According to the International Energy Agency, the existing mines or projects would only meet eighty percent of copper needs by the end of the decade as we deal with a metal shortage.
Nick Pickens, research director of global mining at Wood Mackenzie, said, “As governments and manufacturers aim to diversify away from China, it is crucial to consider the entire supply chain, not just mining operations.”
A report shows that eighty percent of copper mining produces copper concentrate, which has to be processed at smelters and refineries. Since the beginning of 2000, China has been responsible for seventy-five percent of the world’s smelter capacity, making them dominant in the industry.
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