KEY POINTS
- Glencore partners with Cyclic Materials for copper recycling boost.
- Deal to meet growing copper demand from EVs, renewables, and AI.
- Cyclic Materials to supply 10,000 metric tons of recycled copper.
Glencore has announced a strategic partnership with Cyclic Materials Inc., a Canadian rare earth and metals recycling firm, to boost its copper recycling efforts. The move aims to secure sustainable copper supplies as demand for the metal surges due to its role in electric vehicles (EVs), renewable energy, and data centers supporting artificial intelligence (AI).
Under the multi-year agreement, Cyclic Materials will supply at least 10,000 metric tons of recycled copper to Glencore. The copper will be processed at Glencore’s Horne smelter and Copper Refinery in Quebec, which is North America’s largest copper and precious metals recycler.
Ahmad Ghahreman, co-founder and CEO of Cyclic Materials, highlighted the growing need for mining companies to reduce the carbon footprint of copper and reuse metals to meet global sustainability goals.
“This partnership underscores the importance of reusing metals and reducing the environmental impact of copper production,” said Ghahreman.
Copper recycling gains momentum as demand outpaces supply
The global demand for copper is rising rapidly, driven by its critical role in supporting electric vehicles, renewable energy infrastructure, and the growing influence of AI-driven data centers. Analysts predict that demand will surpass supply by 1.7 percent by 2035, putting additional pressure on mining companies to find alternative sources of copper.
According to Reuters, the copper shortage is further exacerbated by the challenges of building new mines, which can take up to a decade and cost up to $5 billion. Beyond financial constraints, companies also face growing resistance from local communities in mining regions like Panama and Serbia.
Instead of waiting for new mines to be developed, industry leaders like Glencore are increasingly turning to recycling as a viable alternative. The collaboration with Cyclic Materials reflects this shift in strategy.
Cyclic Materials specializes in recycling copper and rare earth metals from various end-of-life equipment, including electric vehicle motors, wind turbines, MRI machines, and data center electronics. Deliveries from Cyclic Materials to Glencore are expected to begin by the end of 2025, positioning Glencore to better meet growing copper demands.
Sustainable copper supply strategy gets a boost with new deal
In response to the global copper shortage, Glencore’s latest partnership with Cyclic Materials is a proactive move toward sustainable supply chain management. Kunal Sinha, Glencore’s Global Head of Recycling, described the deal as a significant step in broadening the company’s recycling activities.
“This partnership allows us to secure copper from additional sources, further supporting our recycling strategy,” said Sinha.
The financial details of the agreement remain confidential, but Ghahreman noted that pricing is benchmarked against high-grade scrap copper. Also, this type of copper typically trades at a small discount to the London Metal Exchange (LME) copper price, which is currently above $9,200 per metric ton.
With demand for copper surging and supply challenges mounting, partnerships like the one between Glencore and Cyclic Materials are expected to play a key role in reshaping the copper supply landscape.
By prioritizing recycled materials, both companies aim to reduce environmental impact and support the transition to cleaner energy solutions.
