The significance of copper as a strategic mineral resource cannot be overstated, as it serves as a foundational material for both national economies and social developmentWith the increasing focus on achieving carbon neutrality, the demand for copper in emerging industries such as electric vehicles and renewable energy generation has surged, marking the beginning of a favorable era for copper consumptionThis transformation is not merely about increasing quantities; it also compels copper companies to adapt and enhance the properties of their materialsIn the long run, the growth of the renewable energy sector is poised to have a profound impact on the copper industry.

Historically, copper has long been revered for its excellent electrical conductivity, malleability, durability, and corrosion resistanceTraditionally, it has found applications in construction, infrastructure, manufacturing, and transportation sectorsThe consumption structure for copper remained relatively stable until around 2016 when industries such as electric vehicles and solar energy began to significantly increase their use of copperThis shift reflects a changing landscape, where the role of copper extends far beyond its conventional applications.

In recent years, the overall copper processing industry in China has exhibited a steady and optimistic growth trendAs of 2023, the production of copper processing materials reached an impressive 20.85 million tons, marking a 3.0% year-on-year increaseDifferent varieties of copper products have consistently maintained production growth, with net exports of copper processed products hitting a record high of 320,400 tonsIt is noteworthy that emerging industries, including new energy vehicles, artificial intelligence, robotics, and green energy, have become significant drivers of copper consumption, showcasing a robust development momentum in these sectors.

The renewable energy sector serves as a prime example of how copper usage is evolving

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New energy vehicles (NEVs) have an astounding copper density that is four times greater than that of traditional vehiclesIn the realm of renewable energy generation, copper density is reported to be two to three times that of conventional fossil fuel energy generation systemsSuch clear distinctions underscore the escalating demand for copper as the focus intensifies on scalable clean energy technologies.

Experts from the International Renewable Energy Agency, such as Luis Hanelore, indicate that currently, electricity accounts for approximately 20% of our energy consumptionTo meet the objectives laid out in the Paris Agreement, we must transition towards clean energy, which, by mid-century, could increase electricity's share to 51%. Copper is pivotal in expanding our electrical systems, and its demand is expected to rise consistently in this context.

However, the growth in demand for copper from the renewable energy sector is not only about volume; it brings forth new challenges regarding the performance of copper materialsComponents within electric vehicles, including motors, battery management systems, and other electrical elements, necessitate high-efficiency current transmission, which in turn places stringent requirements on the electrical conductivity of copper materialsIn addition, as electrification evolves, the demand for purity, consistency, thinness, and precision in copper production becomes increasingly critical.

In this rapidly changing environment, the copper processing industry is undergoing necessary transformation and upgradesTaking the city of Fuzhou in Jiangxi province, a prominent hub for copper industry, as an example, the deep processing rate in its copper industry has increased dramatically from less than 10% in 2020 to 51% in 2023. This reflects a concerted effort to establish a dual-leading structure with advanced companies like Jinpin Copper Science and Copper Bo Technology at the forefrontThe goal is to create an industry base for copper-based new materials that integrates high technology, intelligence, and environmental sustainability.

The director of the New Materials Industry Office in Fuzhou High-tech Zone, Chen Peirong, noted that the next steps include leading the establishment of an electric vehicle industry park in Fuzhou, focusing on upstream high-quality copper and aluminum smelting, midstream strip and foil processing, and downstream copper-aluminum-based new materials

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