EV push impacted by copper shortage

author: FutureCar Staff    

Moshiel Biton explores the implications of the "severe" copper shortage in this age of electrification. As the world moves towards a more sustainable and electrified society, copper has become a crucial mineral for powering this transition. From home electronics to electric vehicle (EV) batteries, copper is known as "the metal of electrification."

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

EVs, which play a significant 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 has gained unique importance, especially in the US, where there are plans to reduce emissions by increasing EV production. Copper is also critical for storing energy from renewable sources like wind and solar.

The shortage of copper and its rising cost, along with other limitations in battery production, pose challenges for EV manufacturers. Without an adequate supply of batteries, automakers cannot meet consumer demand for EVs. Additionally, as the cost of raw materials, particularly copper, increases, automakers may have to raise prices or reduce profit margins.

The severe copper shortage may last for decades, affecting not only the EV industry but also other copper-reliant industries. To effectively take advantage of the electric revolution, reduce emissions, and mitigate climate change, new mining initiatives need to be implemented at an unprecedented pace. However, these solutions take time and can have harmful effects on the environment, emphasizing the need for more innovation.

To achieve net-zero targets, the world requires novel technologies and innovative solutions that can mitigate the copper shortage by maximizing existing resources. This includes exploring alternatives to copper, reducing copper consumption while improving efficiency, and adopting a sustainable circular economy approach.

Investing in reliable sources and stable supply chains can help stabilize the copper market and prevent disruptions. However, the severe copper shortage may persist for decades, highlighting the need for better mining methods that maximize extraction while minimizing cost and environmental impact.

Efficiency in copper usage is crucial for EV manufacturers. This includes sustainable recycling and reuse throughout the metal's lifecycle. 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%. Scaling up or developing new methods for recycling electronics can help mitigate copper waste. Governments are recognizing the urgency and investing in battery and consumer product recycling projects.

Breakthroughs in battery technology can also improve copper efficiency and alternative battery production methods. Batteries that maximize copper use can provide more energy at a lower cost and with lower overall copper usage. However, more research and development are needed in this area.

The Biden administration has announced initiatives to support technological breakthroughs in EV battery technologies and strengthen recycling capacities. Transitioning to EVs can significantly reduce greenhouse gas emissions and lower prices for producers and consumers. However, as copper becomes scarcer and more expensive, automakers and environmental agencies face challenges.

Combating the copper shortage requires a joint effort between innovative companies, government support through subsidies and investment, and international cooperation. Only through a multifaceted and multinational approach can the usage of copper be maximized for the present and the future.

As we strive towards a sustainable age with an electrified and decarbonized economy, innovation is key. It is crucial to act now before it is too late.

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

FutureCar Staff