Demand for Copper is Expected to Grow With EVs
Demand for copper is expected to grow with demand for electric vehicles (EVs), according to data published by BIS Research.
Copper is a highly ranked conductor of electricity, and is used in energy generators, motors, renewable energy systems as well as in Lithium-Ion batteries that are used in EVs. As such, the global electric vehicles battery market is estimated to reach $93.94 billion by 2026.
The demand for electric cars is increasing rapidly, with the global stock numbers crossing 2 million in 2016. The wide range of applications of copper differentiates it from other raw metals such as lithium, which has a more concentrated usage in batteries for EVs.
There are several factors that are driving the copper market. James Culver, former chief economist for the Commodity Futures Trading Commission and CEO of VVC Exploration explained that there are three major factors driving today’s copper market.
“The first factor is that the world economies, including in the U.S. and in Europe, are actually perking along rather well. Yes, the Chinese economy is not as robust as it has been in the past, but it is still growing at an annual rate of 6 or 7 percent,” he said. “The second factor is that as technology evolves so do the primary uses of copper, and the electric vehicle industry is an example of that. And third, we are using more copper than we have coming onstream. The demand is increasing steadily and the supply has not caught up.”