EV copper demand to grow despite efficiency-driven content reductions
Copper’s role in battery electric vehicles (BEVs) is evolving.
The red metal plays a critical role in battery electric vehicles (BEVs), averaging a copper intensity just shy of 70 kg per vehicle. Copper is essential for various components, including the copper foil that serves as a separator between the anode and cathode in batteries, motors, and cables required for recharging.
Yet, automakers are reducing copper intensity of these components to achieve cost savings as they ramp up BEV production. According to Benchmark estimates, this trend will lead to a 38 kg reduction in copper usage per vehicle by 2030, driven by thrifting and the substitution of copper with cheaper materials, as well as efficiency improvements.
Nearly all copper-containing subcomponents are expected to see some reduction. Busbars—used to distribute power from the battery to different parts of the vehicle and for thermal management—are set to experience the largest annual reduction, averaging 6% to 2030. Lighter and more affordable aluminium busbars are becoming a popular alternative to copper.
Despite these reductions, the demand for copper from the BEV sector is projected to grow significantly as deployment rates soar and charging infrastructure is built out. These developments are expected to more than offset the decline in copper usage per vehicle.
Benchmark projects a 177% increase in copper demand from the EV and battery sector by 2030, reaching 2.5 million tonnes annually.
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