NKT Signs €6bn Copper Supply Deal

Why It Matters

The deal locks in a critical raw material at predictable cost, shielding NKT from market volatility while reinforcing Europe’s strategic copper supply for renewable‑energy infrastructure.

Key Takeaways

• €6bn contract secures copper until 2036.
• Extends NKT‑KGHM partnership by nine years.
• Supports NKT's expansion of power‑cable production.
• Reduces NKT exposure to copper price volatility.
• Aligns with EU energy transition and responsible sourcing.

Pulse Analysis

Copper demand is accelerating as renewable‑energy projects, electric vehicles, and grid modernization drive the need for high‑capacity power cables. NKT, a leading European cable manufacturer, is positioned to capture this growth, but its ability to scale hinges on reliable access to high‑purity copper. By locking in a multi‑billion‑euro supply stream, NKT can plan capacity expansions with confidence, ensuring it meets the surge in orders from utilities and infrastructure developers worldwide.

Supply‑chain resilience has become a strategic priority after recent commodity price spikes and geopolitical disruptions. A long‑term contract with KGHM, which controls the entire copper value chain—from mining to rod fabrication—mitigates price risk and reduces reliance on volatile spot markets. The partnership also guarantees European‑sourced copper, satisfying regulatory expectations for local content and sustainability. KGHM’s Copper Mark certification further assures NKT’s customers that the material meets stringent ethical and environmental standards.

The agreement dovetails with the European Union’s push for a green transition, where secure copper supplies are essential for renewable‑energy installations and grid upgrades. By securing copper through 2036, NKT not only strengthens its competitive edge but also contributes to broader policy goals of decarbonisation and supply‑chain transparency. Analysts view the deal as a bellwether for other industrial players seeking similar long‑term commodity arrangements to underpin growth in a low‑carbon economy.

NKT signs €6bn copper supply deal

KGHM agreement secures material to 2036 · 17 February 2026 09:52

NKT has signed a €6 bn agreement with KGHM to secure copper supply for its power‑cable manufacturing through to 2036.

The company said the renewed long‑term contract with the European mining and smelting group extends their existing agreement by nine years—from 2028 to 2036—with the current contract running until the end of 2027.

NKT stated that the total estimated value of the extension is around €6 bn for 2028‑2036 based on current assumptions.

The deal secures a stable supply of European‑produced copper as NKT expands production facilities to meet rising global demand for power‑cable solutions.

Claes Westerlind, president and CEO of NKT, said:

“Our extended partnership with KGHM is an important step in securing the long‑term supply of copper that underpins our ability to deliver reliable power cable solutions to our customers. KGHM is a long‑standing, trusted partner to NKT, consistently demonstrating strong operational performance and high‑quality output. By strengthening this relationship, we reinforce the robustness of our supply chain, reduce our exposure to market volatility and ensure a stable foundation for NKT’s continued growth.”

KGHM operates across the copper value chain from mining and smelting to refining, recycling and rod manufacturing.

Remigiusz Paszkiewicz, acting president of the management board of KGHM Polska Miedź S.A., said:

“Our long‑term cooperation with NKT highlights KGHM’s position as a dependable supplier of high‑quality copper products in a demanding market environment. It reflects the trust we have built together and our shared commitment to supporting the energy transition. We value this partnership, and we are proud that our wire rod will continue to contribute to the advanced and sustainable solutions developed by NKT.”

NKT said KGHM’s fabrication facilities and smelters are Copper Mark certified and aligned with its commitment to responsible sourcing and ethical standards.