Copper shortage impacts electric vehicle push

author: FutureCar Staff    

Moshiel Biton explores the implications of the "severe" shortage of copper in the context of the electrification revolution and the need for a more sustainable society. Copper, known as "the metal of electrification," is crucial for powering everything from home electronics to electric vehicle (EV) batteries.

However, the world is not producing enough copper to meet the increasing demand and achieve net-zero carbon targets. A Bloomberg report predicts that by 2040, copper demand will rise by 53%, while supply will only increase by 16%.

EVs, which play a central role in the electrification revolution, account for 55% of copper demand and require 2.5 times more copper than conventional internal combustion engine cars. Copper is also essential for storing energy from renewable sources like wind and solar.

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

The copper shortage is expected to persist for decades, affecting not only the EV industry but also other copper-dependent sectors. To fully leverage the benefits of the electric revolution, reduce emissions, and combat climate change, new mining initiatives need to be implemented rapidly. However, these solutions take time and can have adverse environmental impacts, highlighting the need for innovation.

To achieve net-zero targets, novel technologies and innovative solutions are required to address the copper shortage. This includes exploring alternatives to copper, reducing consumption while improving efficiency, and adopting a sustainable circular economy approach.

Investing in reliable sources and stable supply chains can help stabilize the market and mitigate disruptions. However, the severity of the copper shortage suggests that it may persist for decades. This necessitates the development of mining methods that maximize extraction while minimizing costs and environmental impact.

Efficiency is crucial in the use of copper, especially in the EV industry. From extraction to recycling, every ounce of copper must be utilized effectively. Improving recycling rates and finding new methods to reintroduce copper into circulation are essential. Governments are recognizing the urgency and investing in research and projects for battery and consumer product recycling.

Breakthroughs in battery technology can also enhance copper efficiency and alternative battery production methods. Energy-dense batteries that maximize copper use can provide more power at a lower cost and with reduced copper consumption. However, further research and development are necessary.

The Biden administration has taken steps to support technological advancements in EV battery technologies and recycling capacities. The transition to EVs can significantly reduce greenhouse gas emissions and lower costs by maximizing copper use. Collaborative efforts between companies, government subsidies, private investments, and international cooperation are crucial for effectively utilizing copper.

The challenge of addressing the copper shortage requires continued innovation and collective action. Only by driving towards a sustainable, electrified, and decarbonized economy can we overcome these challenges before it is too late.

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

FutureCar Staff