Publication date:
May 30, 2024

Copper Supply Shortage Threatens Electric Vehicle Transition
A potential copper scarcity and industry limitations pose significant obstacles to the global electric vehicle transition as demand outpaces supply.
Electric Vehicles
Concerns loom over the viability of the global electric vehicle transition due to an anticipated shortage of copper, a crucial component in electric vehicles' production. The exponential rise in copper demand driven by the automotive sector's electrification poses a significant challenge as it surpasses the mining industry's current capacity. Recent research underscores the monumental task ahead, indicating that meeting EV and green energy targets necessitates mining more than double the historical copper output by 2018 within the next 25 years. The substantial transition requires unprecedented acceleration in mining activities to satisfy policymakers' objectives. This accelerated pace is hampered by the extended timelines required to establish new mines, along with the substantial capital investments demanded by the industry. Furthermore, regulatory frameworks, environmental constraints, and capital constraints impede quick market entry for new players or smaller entities. Key stakeholders emphasize the vital role of governments in fostering domestic mining investments and encouraging responsible mining practices. The push for increased mining activities aims to demonstrate that sustainable mining operations are feasible and align with national interests, particularly in the US and EU. As automakers explore technological alternatives to reduce copper usage in EVs, such as solid-state batteries, commercial scalability remains a distant prospect, leaving copper as an indispensable resource for the foreseeable future.