On November 27, the Solar Regulatory Initiative in Europe (SSI) and Copper Mark signed an agreement aimed at "promoting responsible copper production and sourcing across the entire solar energy supply chain."
SSI, jointly established by the trade body SolarPower Europe and Solar Energy UK, is a self-regulatory organization focusing on the solar photovoltaic supply chain and sustainability. SSI covers over 70% of global solar manufacturing capacity, and its ESG certification system is an industry benchmark. Copper Mark currently certifies 96 copper production sites. This collaboration will create a closed-loop mechanism encompassing "production compliance certification - supply chain traceability - end-application verification."
The organization stated that with the increasing deployment of solar energy and the rising use of copper in the solar sector, "the necessity for cooperation among key stakeholders in the copper supply chain is becoming increasingly apparent."
The two organizations signed a Memorandum of Understanding (MOU) to analyze the supply chain, identify environmental, social, and governance (ESG) risks, and provide solutions to improve the overall performance of the industry. Copper Mark is a supply and compliance assurance framework for the copper, molybdenum, nickel, and zinc supply chains.
Copper has long been a major component of solar power transmission infrastructure and cables, and is increasingly becoming a crucial part of solar photovoltaic cell manufacturing. Standard processes heavily rely on silver as a conductive material in solar cells, but with increasing manufacturing capacity and advancements in cell technology, the cost and scarcity of silver are beginning to pose challenges.
The solar manufacturing industry's share of global silver demand is growing, and silver's scarcity and high cost are forcing technological innovation within the industry. As Wang Yongqian, chief scientist at the Chinese solar manufacturer Aiko Solar, discussed, the industry is accelerating the metallization process of copper-based cells, replacing silver, and copper demand in the solar sector is expected to surge further over the next five years.
According to a recent report, the energy transition, driven by solar manufacturing and grid expansion, is likely to be the main driver of copper demand growth over the next decade. The report's author, Wood Mackenzie, stated that geopolitical pressures as countries seek to reduce their reliance on imports will accelerate copper demand growth in the renewable energy sector.
“This collaboration with Copper Mark is a significant step towards building a truly integrated and responsible production model across the solar energy supply chain,” said Rachel Owens, CEO of SSI.
“By connecting upstream and downstream assurance efforts, we can enhance transparency and accountability from raw materials to finished solar products. Our partnership aims to strengthen the link between the metals and solar industries, ensuring the rapid expansion of renewable energy is based on ethical, traceable, and sustainable supply chains.” Supply-demand mismatch intensifies, pushing copper prices into an upward trend.
2025 is a volatile year for the copper market. At the beginning of the year, after Trump's initial threat of tariffs, US copper prices surged, triggering a massive flow of metal from the rest of the world to the US. Although subsequent tariff exemptions led to a temporary price decline, global copper prices have recently climbed to near record highs due to a series of mine supply disruptions leading to tighter global supply, coupled with traders rushing to ship metal before potential tariffs take effect.
Ding Yueli, Head of China Basic Materials Research at UBS Investment Bank, analyzed that the copper mining sector has been affected by multiple factors, including climate, the pandemic, and regional disturbances, increasing the damage rate from 5%-6% to 7%-8%, resulting in continued tight copper mine supply and virtually zero new supply this year.
UBS predicts that global copper mine growth will be approximately 1% in 2026. The continued transformation towards new energy sources such as energy storage, photovoltaics, and data centers is driving copper demand, with global copper demand expected to increase by 3% next year. Against this backdrop, we believe that the average price of copper will steadily climb to higher levels. UBS expects the global average copper price to reach $11,464 per tonne in 2026, representing a year-on-year increase of over 15%.
