Crisis in Copper Supply Impacts Electric Vehicle Drive

author: FutureCar Staff    

Moshiel Biton explores the significant implications of the global copper shortage, which is hindering the transition to a sustainable, electrified society. Copper is a vital mineral for powering the electrification revolution, used in various applications such as home electronics, electric vehicles (EVs), and renewable energy storage.

The demand for copper is expected to increase by 53% by 2040, while supply is projected to grow by only 16%. EVs, which account for 55% of copper demand, require 2.5 times more copper than traditional combustion engine cars. This shortage of copper, coupled with limitations in battery production, poses challenges for EV manufacturers in meeting consumer demand and maintaining profit margins.

The shortage of copper is not limited to the EV industry. As renewable energy and other copper-reliant industries expand, the scarcity of copper will become more pronounced. To effectively leverage 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 harm the environment, highlighting the need for innovative approaches.

To address the copper shortage, novel technologies and innovative solutions are required. This includes exploring alternatives to copper, reducing 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 the market and mitigate disruptions.

Efficiency in copper usage is crucial, especially in the EV industry. Maximizing the use of copper throughout its lifecycle, from extraction to recycling, is essential. However, the current copper collection rate for consumer goods and electronics is only 53%, and the global end-of-life recycling rate for copper is 40%. Scaling up recycling methods and investing in research and projects for battery and consumer product recycling can help minimize waste and increase copper availability.

Breakthroughs in battery technology can also enhance copper efficiency and alternative battery production methods. Research and development efforts are necessary to further optimize copper usage and reduce ecological harm. The Biden administration has initiated an advanced battery research consortium and invoked the Defense Production Act to support technological advancements and bolster recycling capacities.

Addressing the copper shortage requires a collaborative effort between innovative companies, government subsidies, private investments, and international cooperation. Transitioning to EVs can significantly reduce greenhouse gas emissions and contribute to sustainability goals. However, without concrete steps and support, the copper crisis will persist. It is crucial to continue innovating and driving towards a sustainable, electrified economy before it is too late.

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

FutureCar Staff