Vertex Material targets global copper supply gap with proprietary composite technology

LocalBusiness & Finance
30 Sep 2026 • 5:12 PM MYT
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KUALA LUMPUR: Vertex Material, a Malaysian advanced-materials company, is advancing the commercialisation of its proprietary copper-composite technology to help manufacturers reduce pure copper usage in suitable industrial applications, offering a practical approach to addressing long-term supply constraints.

The company’s technology combines copper with waste-derived composite material through a proprietary formulation and powder-metallurgy process.

Containing approximately 70% copper, the composite serves applications where 100% pure copper is not technically required, but specific levels of electrical conductivity, heat transfer, strength, or machinability are still needed.

This allows Vertex Material to produce more usable material from a given amount of raw copper while meeting exact engineering specifications for heat sinks, industrial electrical contacts, and semiconductor thermal-management components.

The focus on material efficiency comes as the global industry faces a projected shortfall between future copper demand and new supply.

In its Global Critical Minerals Outlook 2025, the International Energy Agency (IEA) projected that mine supply from existing and announced projects could fall approximately 25% short of primary copper requirements by 2035 under its Stated Policies Scenario.

The IEA identified declining ore grades, rising project costs, and fewer new discoveries as major hurdles to bringing additional supply into production.

Vertex Material CEO Chris Lai said copper availability is becoming an increasingly important consideration for manufacturers in the semiconductor, battery, connectivity and construction industries.

“Our focus is on helping customers make each tonne of copper go further while meeting the performance their products require.

“We are not seeking to replace copper across every application. Our niche is where a composite can be used to use copper more efficiently while meeting the required electrical, thermal, and mechanical specifications.

“That is where we see an opportunity to contribute to the supply chain,” he said.

On the commercial front, Vertex Material has signed an offtake agreement with a distributor for 160,000 MT of copper-composite material annually.

The company’s initial sales strategy focuses on partnering with distributors already established within the copper supply chain, utilising their customer relationships, local market knowledge, and distribution networks to introduce the products to industrial manufacturers.

This contracted demand provides the commercial foundation for Vertex Material’s US expansion, driven by regional copper demand, raw material access, infrastructure availability, and local industry expertise.

The company is evaluating potential sites for a US facility with a planned annual production capacity of one million MT, targeting completion of the facility fit-out in the second half of 2027 and commercial production in 2028.

As part of this site selection process, Vertex Material is receiving assistance from the Greater Phoenix Economic Council (GPEC)—a regional public-private economic development organisation in the US—to identify suitable locations in Arizona and explore potential incentives for the proposed plant.

Together with its 22 member communities, Maricopa and Pinal counties, and more than 200 private investors, GPEC works to advance economic diversity, resilience, and smart growth in one of the United States’ fastest-growing markets.

“The Greater Phoenix Economic Council is an excellent partner for companies looking to expand into the US.

“The team has been helpful and responsive in supporting Vertex Material, and I highly recommend GPEC to businesses seeking assistance with their U.S. expansion,” Lai said.

To support its US operations and ensure compliance with local requirements, Vertex Material is actively recruiting senior US professionals.

Recent appointments include Steven Sokohl as chief financial officer, who will oversee financial management and internal controls as the company scales.

“Commercialisation requires more than a formulation. It requires consistent production, access to raw materials and a practical route to customers.

“The distributor offtake provides a foundation for that next stage. We are now focused on selecting a suitable US location and building the local team and operating capabilities to support production,” Lai said.

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