The energy transition will not succeed without copper. Thanks to KGHM Poland is safe in terms of access to deposits of this element.
The role of red metal in the economy is emphasized by the country's raw materials policy until 2050, adopted last year. Copper was identified there as essential for stable development, especially for the energy industry. This approach is in line with global trends — according to Goldman Sachs analysts in their report “Global Markets Daily: The Growing Influence of Green Capex on Copper Fundamentals”, by 2030, close to 20 percent of global demand for this raw material will be generated by projects related to green transformation and energy security.
The world's largest economy, the United States, also emphasizes the role of copper. Recently, the Department of Energy decided to include the red metal in the list of critical raw materials. In Poland, we have guaranteed access to this raw material, as currently the extraction of copper from the KGHM deposits in Lower Silesia accounts for 50% of the total copper mining production in the EU.
One of the engines ensuring the demand for copper is on our continent is the Green Deal, which assumes the reduction of greenhouse gas emissions. Without copper, its implementation will not be possible, since 22 million tons of copper are needed to carry out the energy transition in Europe.
It is crucial in many technological innovations, including those related to green energy. It is used in turbines of wind power plants or in electromobility.
Today, with rising oil prices and the need to find more sustainable energy sources, wind power has never been more popular. Huge wind farms with turbines and individual power-generating units are becoming more common as more and more people struggle to offset the effects of climate change. And here copper plays an important role. For example, a single 3 MW wind turbine contains up to 4.7 tons of copper, and the construction of a 1 MW solar power plant requires 3.1 to 4.5 tons of copper. Relatively thick but soft copper is preferred for use in silicon cells to reduce their brittleness and increase throughput.
Already in 2017, the World Bank predicted that by 2050, the growing production of wind turbines will need 300 percent more metals, 200 percent more metals will be needed to make solar panels, and as much as 1,000 percent will increase the demand for metals needed to make batteries, including copper.
The development of the electric car market will have a significant impact on the demand for copper. And it's not just about the electric vehicles themselves (their batteries and control systems), but also about the electrical infrastructure needed to power them.
The World Bank predicts that by 2027, the electric vehicle industry will need 1.74 million tons of copper. To produce an electric vehicle, up to four times more of this raw material is needed than for an internal combustion car (83 kg instead of 23 kg). And their global production continues to grow, according to EY, 10 million cars were built in 2022, and in less than 20 years it will be 70 million a year.
One cannot disagree with the opinion expressed by Frank Holmes, head of investment firm US Global Investors, in the pages of the American Forbes pages, that “there is currently a race in the world for the red metal, and copper is undoubtedly the metal of the future.”
Source: KGHM/https://biznes.wprost.pl/firmy-i-rynki/11489009/wyscig-oczerwony-metal.html
12/2/25
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