The demand for copper from this industry is expected to be 1 million tonnes (mt) this year and 1.5 mt in 2025, according to Goldman Sachs, which described increasing EV usage as a "key pillar of copper's bullish story". The bank stated in a note dated Wednesday that copper is "an ideal candidate for the …
The demand for copper from this industry is expected to be 1 million tonnes (mt) this year and 1.5 mt in 2025, according to Goldman Sachs, which described increasing EV usage as a “key pillar of copper’s bullish story”. The bank stated in a note dated Wednesday that copper is “an ideal candidate for the transformation and transmission of electrical energy in EVs due to its highly conductive and ductile nature.”
According to the bank, EV production was responsible for around two-thirds of the growth in the demand for copper globally last year and will likely be responsible for an additional 27% of copper usage over the following ten years. The analysts at Goldman said they were upbeat about EVs and predicted “strong sales in China, driven by lower prices and a high demand for EVs that has been building up over the rest of 2023.”
Due to a sluggish rebound in Chinese demand and worries about the pace of global economic growth, benchmark copper prices on the London Metal Exchange fell 7.5% in the second quarter of 2023. The quantity of copper required per EV is expected to drop to 65 kg by 2030, down from 73 kg in 2022, which would mean a longer-term decrease in copper utilisation in EVs.
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