Who Holds the Copper, Holds the Future of Green Energy

By Su, Wei-Cheng / Lecturer in Business Law, Department of Finance, Shih Chien University

Those Who Control Copper, Control the World: The New Green Energy Battleground

Key metals such as copper, lithium, and nickel are gradually replacing the strategic status once held by oil and natural gas, becoming indispensable elements of modern national security.

U.S. President Donald Trump recently announced that, starting August 1, Washington will impose a 50% tariff on copper semi-finished products exported to the U.S.—including copper pipes, wires, rods, plates, and tubing—as well as high-copper-content derivative products such as fittings, cables, connectors, and electrical components. Refined copper, copper ore, and copper scrap, however, are temporarily exempt. At the same time, the administration ordered that domestically mined copper concentrates and scrap be prioritized for U.S. use, underscoring copper's strategic importance in both the global energy transition and geopolitical competition.

Driven by both the global energy transition and geopolitical tensions, copper, lithium, and nickel are steadily taking over the role oil and gas once played. The International Energy Agency (IEA) forecasts that to achieve net-zero emissions, global copper demand will double by 2035, with potential supply shortages reaching up to 30%. Meanwhile, factors such as the Russia-Ukraine war, U.S.-China rivalry, and climate-induced water scarcity at mining sites have all heightened supply risks.

Although copper deposits are more widely distributed than oil, challenges remain: lengthy mining cycles, limited high-quality ore, and refining capacity concentrated in only a handful of countries. This is why the U.S., EU, Japan, and other industrial powers have already incorporated copper into their national security strategies, creating strategic reserves and advancing policies on recycled metals.

Known as the “mother of industry” or the "lifeblood of the green energy era", copper's superior electrical conductivity, thermal conductivity, and ductility make it indispensable across power systems, electronics, construction, and transportation. Most importantly, it is a key material in carbon-reduction technologies—from solar panels and wind turbines to electric vehicles and smart grids.

For Taiwan, a critical hub for semiconductors, EV components, and advanced manufacturing, annual copper demand exceeds 500,000 tons, almost entirely dependent on imports. Without stable and controllable sources of raw material, Taiwan's high-tech supply chains and global competitiveness could be severely undermined. The strategic importance of copper to Taiwan is therefore self-evident.

Facing a global copper rush, Taiwan must not stand idly by. Instead, it should actively build a domestic copper circular economy, taking both industrial and policy measures to secure its future.

On the industrial front, Taiwan should expand copper recycling and reuse. Each year, Taiwan generates a large amount of electronic waste and copper-bearing industrial scrap, yet recovery rates remain low and recycling technology lags behind. The government should provide tax incentives and R&D subsidies to encourage investment in advanced recycling and remanufacturing.

A notable example is the collaboration between TSMC and Koyang Material, which successfully transformed semiconductor wastewater into recycled copper pipes—a model of green supply chain cooperation.

Taiwan should also integrate resources across industry, government, academia, and research, building cross-sector alliances to create a more complete circular economy. This includes resource sharing, technology exchange, talent cultivation, and boosting domestic copper utilization. At the same time, investment in copper alternatives and advanced applications of recycled copper should be accelerated, gradually reducing reliance on imports.

On the policy front, the government should classify copper as a strategic resource. Drawing on the experiences of Japan and the EU, Taiwan can establish national stockpiles, strengthen risk forecasting, and build supply-management mechanisms to withstand price volatility and potential supply disruptions.

Clear targets for recycled copper use should also be set—for example, requiring that 20% of total demand be met by recycled supply by 2030. Legal frameworks should be put in place to prevent leakage of critical recycling technologies, safeguarding Taiwan’s technological autonomy and industrial competitiveness. In addition, green procurement policies should be promoted to expand the market for recycled materials. Taiwan should also pursue long-term and diversified supply or investment agreements with major copper-producing countries, while deepening technical exchanges to secure stable access to raw materials.

“Those who control copper, control the world.” As copper's strategic importance grows, those who command its supply will command the future of energy and high-tech industries. To maintain its critical position amid the green transition and geopolitical upheavals, Taiwan must act swiftly, leveraging its technological strengths to build a resilient copper circular economy. Only by doing so it can secure industrial supply chains, ensure economic stability, and achieve sustainable development.

Source of Information: Yahoo News