Shifting away from China for critical minerals would increase costs and delay the energy transition, warns Wood Mackenzie

SINGAPORE/LONDON/HOUSTON,  Aug 15 (Bernama) -- 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. The world cannot achieve decarbonisation without copper, a crucial component in electrification. Currently, China dominates copper mining, downstream processing (smelting and refining) and semi-manufacturing. According to a new report by Wood Mackenzie, demand for copper is expected to rise by 75% to 56 million tonnes (Mt) by 2050, necessitating substantial investment.

Shifting away from China will require massive investments in new copper processing and fabrication facilities. The August Horizons report, Wood Mackenzie's ‘Securing copper supply: no China, no energy transition,’ states that replacing China’s smelting and refining capability alone to meet the rest of the world's demand would require nearly US$85 billion.