The relentless expansion of China’s copper smelting industry has reached a tipping point, creating global distortions that threaten to upend the economics of one of the world’s most essential industrial supply chains. As Chinese production of refined copper hits record levels, smelters everywhere are now grappling with an acute shortage of copper concentrate—the raw ore essential for producing the metal—forcing treatment fees into negative territory and putting high-cost operations around the world at risk.

Over the past several years, China has built up a formidable base of modern, high-efficiency copper smelters, many of which are state-backed. These plants, often with deep financial reserves and government support, have continued ramping up production despite global trade frictions and slowing demand growth. In 2024, China’s refined copper output is expected to rise 10% in the first half alone and nearly 5% for the full year.

Chile’s state-owned copper mining company, Codelco, which is the world’s largest copper producer, has struck a deal to acquire Lithium Power International (LPI), an Australian lithium producer, for AUD 385 million (around $244 million). The agreement was reached following several…

China’s electric vehicle (EV) market is witnessing an unprecedented influx of new models, with over 100 EVs and plug-in hybrids expected to debut in 2024 alone, many of which will be showcased at the Beijing auto show. This surge in offerings, predominantly from Chinese brands, adds to the nearly…