This increasingly coveted metal, here’s why – The New Tribune

For millennia, humans have been fascinated by the brilliance and rarity of certain metals, assigning them a value far beyond their physical properties. Gold, a symbol of wealth and power, has long reigned supreme in the pantheon of precious metals, closely followed by silver, admired for its brilliance and versatility. Platinum, even rarer, has become the preferred choice for luxury jewelry and high-precision industrial applications. These three metals have traditionally attracted the attention of investors and speculators, with their prices fluctuating with economic crises and geopolitical tensions. However, at the dawn of an era marked by unprecedented environmental challenges and a dizzying technological revolution, an unexpected actor is shaking up this established hierarchy and redefining the very concept of a “precious metal.”

Copper, long in the shadow of gold and silver, is now becoming the star metal of the 21st century. This material, renowned since ancient times for its ductility and durability, is experiencing a real renaissance in the era of energy transition and digital revolution. Its growing strategic importance and increasingly rare properties make it an object of desire for all on the world market.

Catalyst for the Green Revolution

this copperWith its unique ability to conduct electricity and heat, copper has become key to the transition to a low-carbon economy. The reddish metal is ubiquitous in green technology, from giant wind turbines to high-tech solar panels to electric car batteries. An average-sized offshore wind farm can contain up to 200 tons of copper, while an electric car requires about four times as much copper as a traditional gasoline car.

This exponential demand is reflected in the evolution of the red metal’s price. In ten years, its price on the international market has more than doubled, reaching historical highs. Some financial analysts do not hesitate to describe it as the “new oil”, emphasizing its key role in the future global economy.

But copper’s importance isn’t limited to the renewable energy sector. It remains a critical component of buildings, consumer electronics, and telecommunications infrastructure. The massive deployment of 5G and the proliferation of data centers supporting artificial intelligence and cloud computing are factors driving demand. It is estimated that a single medium-sized data center may require up to 100 tons of copper for its cabling and equipment.

Global supply challenges

Faced with this growing demand, the world’s copper supply is struggling to keep up. Easily accessible deposits are becoming increasingly scarce, forcing manufacturers to turn to deeper, less concentrated mines. The average copper content of mined ore has fallen by nearly 30% over the past 20 years, making it more expensive and energy-intensive to mine.

Geopolitical and environmental challenges have exacerbated the tight supply situation. Chile and Peru alone provide nearly 40% of global production, and they are facing increasing political instability and protest movements against the mining industry. At the same time, the opening of new mines faces increasingly stringent environmental regulations and opposition from local residents.

Recycling, a partial but promising solution

In this context, copper recycling appears to be a partial but promising solution. Unlike other materials, copper can be recycled indefinitely without losing its properties. Currently, about 30% of global demand is met by recycled copper, and according to some optimistic estimates, this share could reach 50% by 2040.

Innovative recycling technologies are emerging, making it possible to recover copper in complex products such as electronic cards or scrap batteries. These advances help to reduce pressure on primary resources and limit the environmental impact of the copper industry.

Copper is therefore considered a major strategic issue for the coming decades. Its central role in the energy transition and digital transformation makes it a barometer of the health of the global economy and an important lever for achieving climate goals. In the face of supply challenges, innovation in extraction, recycling and finding alternative materials will be essential to support future green growth. Once a symbol of the Bronze Age, the red metal may well become a symbol of the post-carbon era.