Copper shortage impacts electric vehicle push.

author: FutureCar Staff    

Moshiel Biton explores the consequences of the "severe" copper shortage and its impact on the electrification revolution. Copper is a crucial mineral for powering the transition to a sustainable, electrified society. It is used in various applications, from home electronics to electric vehicle (EV) batteries, earning it the nickname "the metal of electrification."

However, the world is not sourcing enough copper to meet the surging demand and achieve net-zero carbon targets. According to a Bloomberg report, copper demand is projected to increase by 53% by 2040, while supply will only increase by 16%.

EVs, which play a vital role in the electrification revolution, account for 55% of copper demand and require 2.5 times more copper than traditional internal combustion engine cars. This emphasis on EVs is particularly significant in the US, where there are plans to increase EV production to reduce emissions. Copper is also essential for storing energy from renewable sources like wind and solar.

The scarcity of copper and its rising cost, along with other limitations in battery production, pose significant challenges for EV manufacturers. Without an adequate supply of batteries, automakers cannot meet consumer demand for EVs. Moreover, as the cost of raw materials, especially copper, rises, manufacturers may be forced to raise prices or reduce profit margins.

The shortage of copper is expected to persist for decades. As EVs and renewable energy become more widespread, other industries reliant on copper will also face difficulties sourcing the metal. To effectively leverage the electric revolution, reduce emissions, and mitigate climate change, new mining initiatives need to be implemented rapidly. However, these solutions take time and can have adverse environmental effects, underscoring the need for innovation.

To achieve net-zero targets, the world needs novel technologies and innovative solutions that maximize existing copper resources. This includes exploring alternatives to copper, reducing copper consumption while improving efficiency, and adopting a sustainable circular economy approach to copper usage.

Investing in reliable sources and stable supply chains can help stabilize copper supply and mitigate disruptions in global markets. However, the severe shortage of copper is likely to persist for decades. This necessitates the development of mining methods that maximize extraction while minimizing costs and environmental impacts.

It is important to note that increasing copper production can have detrimental environmental effects, such as land degradation and pollution. Improving copper usage efficiency is one of the best ways to obtain the necessary materials while minimizing ecological harm.

Efficiency is crucial for EV manufacturers to make the most of every ounce of copper throughout the metal's life cycle, from extraction and production to recycling. Sustainable recycling and reuse of copper are vital. However, the current copper collection rate for consumer and electronic goods is only 53%, and the global end-of-life recycling rate for copper is 40%. More efforts are needed to scale up recycling methods and ensure the return of copper into circulation.

Recent advancements in battery technology are helping improve copper efficiency and enable alternative battery production methods. Batteries that maximize copper usage can provide more energy at a lower cost and with reduced overall copper consumption. However, further research and development are necessary.

The Biden administration has recognized the importance of advancing battery technologies and bolstering recycling capacities. Initiatives such as an advanced battery research consortium and the use of the Defense Production Act demonstrate the commitment to address the copper shortage and promote sustainability.

Transitioning to EVs can significantly reduce greenhouse gas emissions and lower costs for producers and consumers. By reducing reliance on newly extracted copper, sustainability goals become more attainable. However, as copper becomes scarcer and more expensive, automakers and environmental agencies face challenges.

Addressing the copper shortage requires a collaborative effort involving innovative companies, government support, and international cooperation. Concrete steps, such as government subsidies and private investments, are necessary to support these initiatives. Only through a multifaceted, multinational approach can copper usage be maximized now and in the future.

In the face of this challenge, human ingenuity must prevail. Continued innovation is crucial to drive towards a sustainable, electrified economy. Action must be taken before it is too late.

About the author: Moshiel Biton is the CEO and Co-Founder of Addionics.

FutureCar Staff