Challenges in U.S. Copper Processing Technology

America Has the Copper — But Not the Capacity By Diego Dávila - D&L Group Something extraordinary is happening in the copper world — and almost nobody is connecting the dots correctly. China — despite Jiangxi Jinda Copper Industry Co., Ltd., Zijin Mining Group and the entire China Smelters Purchase Team (CSPT) — cannot secure enough copper concentrates to keep its massive smelting system running. Here is the simple explanation: Copper smelters normally charge miners a fee (TC/RC) to convert concentrate into refined copper. It’s their income. But because concentrate has become so scarce due to disruptions at CODELCO – Corporación Nacional del Cobre de Chile, Anglo American , First Quantum Minerals, Teck Resources Limited , Freeport-McMoRan, Kazakhmys Corporation and Ivanhoe Mines … …TC/RC collapsed into negative territory. Smelters now pay miners just to receive concentrate — and still absorb all processing costs. That’s no longer business; it’s survival. This is why China can’t process the world’s copper today: ➡️ too much smelting capacity ➡️ too little concentrate ➡️ 10%+ production cuts planned for 2026 Meanwhile in the U.S., something paradoxical is happening: Copper cathodes are piling up — fast. Not because America became a copper superpower, but because the COMEX–LME arbitrage made it more profitable to deliver metal into U.S. warehouses than to sell it to a smelter. Copper didn’t flow to U.S. industry. It flowed to U.S. arbitrage. And here’s the structural risk no one is discussing: The U.S. has the copper… but not the capacity to transform it. Despite strong players — Aurubis, Wieland Group, Revere Copper Products, Inc., Hussey Copper — America does not have enough rolling, extruding, drawing, or plating capacity to turn cathodes into the components needed for: • Data centers • Transformers • EV charging • Switchgear • Utility grid upgrades • Industrial electrification Plating is an even smaller bottleneck — only a few facilities like S&S and Greenwood can tin- or silver-plate bars at hyperscale. Most U.S. mills rely primarily on scrap, not cathodes. So the cathode build-up contributes nothing to domestic electrification. This is the real story: Copper is in the right country… at the wrong stage of the value chain… during the biggest AI and electrification cycle in history. Tariffs won’t fix this. Politics won’t fix this. Only capacity fixes this. If the U.S. wants true supply-chain sovereignty, it must focus on building fabrication capability — not just accumulating metal: • New mills and plating lines • OEM-integrated fabrication hubs • Downstream incentives • Real industrial strategy, not storage strategy Because in the copper era, capacity — not tonnage — is the real currency of power. Amazon Web Services (AWS) Google Microsoft CSIS Critical Minerals Security Program #Copper #Metals #Electrification #Manufacturing #USA #AIInfrastructure #DataCenters #EnergyTransition #SupplyChain #DLGroup #Leadership

Tariffs will not solve America’s copper problem. We need real progress in recovery and recycling, something I address in my new piece for EE Times | Electronic Engineering Times on a growing challenge for our industry.    The current 50 percent tariff raises costs for U.S. PCB manufacturers, especially since up to 60 percent of copper foil is etched away during fabrication and never reaches the finished product. At the same time, the country lacks the secondary smelting capacity needed to recycle the copper already here. In the article, I outline several actions that can help:  • Build modern secondary smelting and refining in the United States • Create consistent national rules for copper-rich materials • Support companies that recycle copper from PCB processes • Incentivize production of specialized copper products used in electronics • Engage industry leaders to map the economics and permitting needed for new facilities   If you work in electronics manufacturing or supply chain, I hope you will take a moment to read and share your perspective. https://bit.ly/4pimH1k

🇺🇸 The U.S. has the copper—but not the capacity to refine it. Despite rich domestic resources, America still ships raw copper abroad for processing, then re-imports it—while China controls ~70% of global refining. With copper demand set to jump from 27M to 37M tonnes by 2050, this refining gap risks becoming a bottleneck for EVs, clean energy, and national security. ⛔ High costs, red tape, and permitting delays are stalling new projects. If the U.S. wants to lead the energy transition, it must rebuild its refining backbone—urgently. #Copper #EnergySecurity #CriticalMinerals #USMining #CleanEnergy #SupplyChain #Electrification #BatteryMetals #CopperRefining #MiningIndustry Terea Africa Ltd