Crisis in copper supply impacts electric vehicle push.

author: FutureCar Staff    

Moshiel Biton explores the far-reaching implications of the global copper shortage, which is hindering efforts to transition to a more sustainable and electrified society. Copper is a crucial mineral for powering the electrification revolution, with applications ranging from home electronics to electric vehicle (EV) batteries. However, the world is not sourcing enough copper to meet the increasing demand and achieve net-zero carbon targets. By 2040, copper demand is projected to rise by 53%, while supply is only expected to increase by 16%.

EVs, which are at the forefront of the electrification revolution, account for 55% of copper demand and require significantly more copper than traditional internal combustion engine cars. The push for EVs has gained unique importance, especially in countries like the US that aim to reduce emissions through increased EV production. Additionally, copper plays a critical role in storing energy from renewable sources like wind and solar.

The severe shortage of copper and its rising cost, along with other limitations in battery production, present challenges for EV manufacturers. Without an adequate supply of batteries, automakers cannot meet consumer demand for EVs. Moreover, as the cost of raw materials, particularly copper, continues to rise, manufacturers may face the difficult choice of either raising prices and potentially alienating some consumers or reducing profit margins.

The shortage of copper extends beyond the EV industry. As EVs and renewable energy become more prevalent, other industries reliant on copper will also struggle to source the metal. To effectively capitalize on the electric revolution, reduce emissions, and mitigate climate change, new mining initiatives must be implemented at an unprecedented pace. However, these solutions take time to make a significant impact and can have adverse environmental effects, highlighting the need for innovation.

To achieve net-zero targets, the world needs novel technologies and innovative solutions to address the copper shortage. 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 is crucial in maximizing copper usage. EV manufacturers must be efficient in every stage of the metal's life-cycle, from extraction and production to end-user journey and recycling. Sustainable recycling and reuse of copper are essential, but the current collection and recycling rates are insufficient. Efforts must be made to scale up recycling methods and develop new approaches to ensure copper is returned into circulation.

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

The Biden administration has recognized the importance of addressing the copper shortage and supporting technological breakthroughs in EV battery technologies. Initiatives such as the advanced battery research consortium and invoking the Defense Production Act demonstrate the commitment to combatting the scarcity of critical minerals.

Transitioning to EVs can significantly reduce greenhouse gas emissions and contribute to sustainability goals. By maximizing copper use, EV prices can be lowered, making them more accessible to consumers. However, as copper becomes scarcer and more expensive, automakers and environmental agencies are facing challenges. Addressing this scarcity requires a collaborative effort between innovative companies, government support, and international cooperation.

Innovation and collective action are essential in driving towards a sustainable and electrified economy. The urgency to act is paramount to ensure a future where sustainability is prioritized and the benefits of electrification are realized.

About the author: Moshiel Biton is the Chief Executive Officer and Co-Founder of Addionics.

FutureCar Staff