Crisis in Copper Supply for Electric Vehicles

author: FutureCar Staff    

Moshiel Biton delves into the implications of the global copper shortage, which is having a severe impact on the electrification revolution. Copper is a crucial mineral for powering the transition to a sustainable, electrified society, being used in various applications such as home electronics and electric vehicle (EV) batteries.

However, the world is not producing enough copper to meet the surging demand and achieve net-zero carbon targets. According to a Bloomberg report, while copper demand is projected to increase by 53% by 2040, supply is only expected to grow 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 traditional internal combustion engine cars. The push for EVs is particularly significant in the US, where there are plans to ramp up production to reduce emissions. Copper is also essential for storing energy from renewable sources like wind and solar.

The shortage of copper, coupled with rising costs and other battery production limitations, is a major concern for EV manufacturers. Without an adequate supply of batteries, automakers cannot meet consumer demand for EVs. Moreover, as raw material costs, especially copper, increase, manufacturers will face the dilemma of either raising prices and potentially excluding some consumers or reducing profit margins.

The copper shortage is expected to persist for decades, impacting 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 must be implemented at an unprecedented pace. However, these solutions take time and can have detrimental environmental effects, highlighting the need for innovation.

To achieve net-zero targets, novel technologies and innovative solutions are required to mitigate 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 copper production and mitigate disruptions in global markets. However, the severe shortage of copper is expected to persist for decades, necessitating the development of better mining methods that maximize extraction while minimizing costs and environmental impact.

It is crucial for EV manufacturers to optimize copper usage throughout the metal's life cycle, from extraction and production to end-user journeys and recycling. Sustainable recycling and reuse of copper are vital for economical use. However, the collection rate for consumer scrap is only 53%, and the global end-of-life recycling rate for copper is 40%. Efforts must be made to scale up or replace current methods for recycling electronics to minimize the waste of copper in batteries and electronics.

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

The Biden administration has announced initiatives to support technological breakthroughs in EV battery technologies and enhance recycling capacities. The effort to combat the copper shortage requires collaboration between innovative companies, government subsidies, private investment, and international cooperation. Only a multifaceted, multinational approach can effectively maximize copper usage now and in the future.

As we strive for a sustainable, electrified, and decarbonized economy, it is essential to continue innovating and taking action before it's too late.

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

FutureCar Staff