Red Metals secured $10 million funding to develop a South Carolina copper refinery, strengthening domestic supply chains and manufacturing.
Canada-listed copper manufacturer Red Metals has successfully secured $10 million in seed funding to support the development of its planned $70 million copper refining facility in Charleston, South Carolina. The investment marks a significant milestone for the company as it works to commercialize an innovative copper refining technology designed to strengthen domestic manufacturing and reduce the United States’ reliance on overseas refining operations.
The funding round was led by Gigascale Capital and attracted participation from several prominent investors, including Future Ventures, MCJ, and JB Straubel, the founder and chief executive officer of Redwood Materials and a co-founder of Tesla. Alongside private investment, Red Metals has also obtained economic development incentives from both the state of South Carolina and Charleston County, further reinforcing support for the establishment of its first commercial production site.
The Charleston facility will focus initially on producing high-conductivity copper rod, a critical material used in electrical wiring, magnet wire, and numerous other industrial and energy-related applications. Demand for copper in the United States is expected to rise significantly over the next decade, driven by electrification trends, renewable energy projects, electric vehicle manufacturing, grid modernization, and expanding industrial activity. Industry projections indicate that domestic copper consumption could increase by more than one million tons annually by 2035, creating a market worth over $45 billion.
At the same time, domestic copper production capacity has struggled to keep pace with growing demand. Even if all currently announced mining projects are successfully developed, the United States is still expected to face a refined copper supply deficit exceeding 2.5 million tons by 2035. This widening gap highlights the need for additional refining capacity and more efficient processing technologies within the country.
According to Red Metals, one of the most significant challenges facing the copper industry today is the complexity of conventional refining methods. Traditional refining systems involve numerous intermediate processing stages, including concentrate, matte, anode, cathode, and rod production. These processes were originally designed to handle low-grade ores, often containing less than 1% copper, and require substantial energy, capital investment, transportation, and coordination among multiple facilities and operators, frequently spread across different countries.
Red Metals aims to address these inefficiencies through a streamlined and integrated refining model. The company’s proprietary process combines physical processing, advanced material sorting, and metallurgical refining into a single continuous operation. This approach enables copper feedstocks to be transformed directly into finished products while eliminating several intermediate stages that typically add cost, processing time, and carbon emissions.
Founder and CEO Jackson Switzer emphasized that the United States already possesses abundant copper feedstocks, strong market demand, and a capable workforce. However, he noted that the country has lacked an economically viable refining solution capable of supporting large-scale domestic production. Red Metals intends to bridge this gap by building a modern refining infrastructure that converts copper materials into finished products closer to end users, simplifying supply chains and strengthening American manufacturing capabilities.
A key advantage of the company’s technology is its feedstock flexibility. Initially, Red Metals plans to process domestically sourced copper scrap, creating a commercially sustainable refining model that can operate without dependence on government subsidies. By doing so, the company hopes to contribute to rebuilding the nation’s industrial base while creating skilled manufacturing jobs and supporting long-term economic growth.
JB Straubel praised the initiative, noting that copper remains one of the most essential materials for electricity generation, transmission, and industrial development. He highlighted that the United States has spent decades outsourcing much of its refining and manufacturing capacity and described Red Metals as a company with the technical expertise and practical execution capabilities needed to help restore that lost infrastructure.
Victoria Beasley, partner at Gigascale Capital, echoed these sentiments, stating that demand for domestically refined copper continues to grow while the infrastructure required to meet that demand remains limited. She added that Red Metals stands out for combining meaningful process innovation with the operational capability necessary to rebuild a critical component of America’s industrial supply chain.
With strong investor backing, government support, and a growing need for domestically refined copper, Red Metals is positioning itself as a key player in strengthening the United States’ critical minerals and manufacturing ecosystem.
