EV push impacted by copper shortage

Moshiel Biton explores the implications of the "severe" shortage of copper and its impact on the electrification revolution. Copper is a crucial mineral for powering the transition to a more sustainable, electrified society. It is used in various applications, from home electronics to electric vehicle (EV) batteries, earning it the nickname "the metal of electrification."

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

EVs, which are at the forefront of 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, which aims to reduce emissions by increasing EV production. Copper is also critical for 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, pose significant challenges for EV manufacturers. Without a sufficient 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 shortage of copper is expected to last for decades, affecting not only the EV industry but also other copper-reliant sectors. To effectively take advantage of the electric revolution, reduce emissions, and mitigate climate change, new mining initiatives need to be implemented rapidly. However, these solutions take time and can have negative environmental impacts, highlighting the need for more 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 copper 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 copper supply and mitigate disruptions in global markets. However, the severe shortage of copper may persist for decades, emphasizing the need for better mining methods and processes that maximize extraction while minimizing costs and environmental impact.

Efficient use of copper is crucial for EV manufacturers. This includes sustainable recycling and reuse of copper throughout its life cycle. Currently, the copper collection rate for consumer and electronic goods is only 53%, and the global end-of-life recycling rate for copper is 40%. To mitigate copper waste, there is a need to scale up or replace current recycling methods for electronics and batteries.

Recent advancements in battery technology are helping improve copper efficiency and develop alternative battery production methods. Batteries that maximize copper usage can provide more energy at a lower cost and with lower overall copper consumption. However, further research and development are necessary in this area.

The Biden administration has announced initiatives to support technological breakthroughs in EV battery technologies and enhance recycling capacities. These efforts aim to reduce greenhouse gas emissions, lower EV costs, and make sustainability goals more achievable. However, the scarcity and rising costs of copper present challenges for automakers and environmental agencies.

Addressing the copper shortage requires a joint effort involving innovative companies, government subsidies, private investment, and international cooperation. Only through a multifaceted, multinational approach can the usage of copper be maximized now and in the future.

Innovation and collaboration are crucial to driving towards a sustainable, electrified, and decarbonized economy. It is essential to act now to ensure a successful transition before it is too late.

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