Glencore relies on sustainable copper cycle

The Swiss commodity company Glencore has secured a multi-year partnership with the Canadian recycling company Cyclic Materials to meet the growing copper demand of the coming years. This cooperation involves the supply of at least 10,000 tons of recycled copper from Cyclic Materials to Glencore. The scrap copper will then be processed into high-quality copper cathodes at Glencore's Horne smelter and refinery in Quebec, as explained by the CEO of Cyclic Materials, Ahmad Ghahreman. Glencore's Horne smelter is known as North America's largest recycler for copper and precious metals. The increasing demand for copper is due to its crucial role in electric vehicles, renewable energies, and data centers for artificial intelligence. Forecasts indicate that copper demand will exceed supply by 1.7% by 2035, and prices have already reached historical highs. The development of new copper mines involves an effort of at least 10 years and up to 5 billion dollars and often encounters public resistance, as already observed in countries like Panama and Serbia. Cyclic Materials is dedicated to the recycling of rare earths and copper from old materials such as electric motors, wind turbines, MRI devices, and electronic scrap from data centers. Delivery of the recycled copper is expected to begin by the end of 2025. Although the financial details of the agreement remain confidential, the business is based on the prices for high-quality scrap copper, which is traded at a small discount to the LME copper price. According to Kunal Sinha, Glencore's global head of recycling, this collaboration expands Glencore's recycling activities by tapping into additional copper sources.