De-risking from Chinese copper would cost world US$85 billion, ‘mess up’ supply chains
- Decoupling from China’s copper manufacturing industry would take ‘massive investments’, says analytics firm Wood Mackenzie
A global supply chain shift away from China’s copper manufacturing industry would take “massive investments” in new plants, including US$85 billion for refining and smelting, analytics firm Wood Mackenzie said on Thursday.
China controls 97 per cent of global smelting and refining capacity, representing almost 3 million tonnes of production, along with US$25 billion in investment, Wood Mackenzie said in a report.
Goods manufacturers typically use copper to make cables and appliances, as well as equipment for decarbonisation.
“As major global economies look to reposition critical minerals supply chains outside China, the resulting inefficiencies could increase the cost of finished goods and delay the energy transition,” said the report.
“[China’s] substantial investments in downstream processing and semi-manufacturing sectors present significant challenges to global copper supply security.”