Increased demands for electric vehicles will do the same to copper

BHP Billiton expects the annual copper demand to increase to 8.5 million tons by the year 2035 with the increased demand from electric vehicles, a positive prospect for the company and investors.

Fleet vehicles globally are growing by one million vehicles to 140 million by 2035 – in 19 years’ time. Such vehicle production will require an additional $38 billion worth of copper, the precious metal which allows the best conductivity of electricity and contributed 27% of BHP Biliton’s commodity sales. Greater demand means more future profit.

The mining conglomerate informs that a typical vehicle engine contains roughly 20kg of copper, versus an EV which uses closer to 80kg.

The Copper Technology Roadmap 2030 explores the role technology and changing demographics will have across Asia and it see substantial growth according to Warren Centre and Exectutive Director Ashley Brinson.

The Asia region is expected to consume 43% of the world’s electricity demands by 2035 and by 2030 China will have the world’s largest electric high speed rail network at over 44,000km. The country will also see global electric vehicle market penetration of full EVs as high as 50% by the same year.

India is also a target of 100% electric vehicles by 2030 under its self-financed scheme to quell rising pollution problems.

“With some 210 million people in China and 195 million in India moving into the middle class, the insatiable demand for energy, services and technology will continue,” Brinson said.

“This is an exciting time for Australia, but we must recognise that in the Asian economy our ability to influence megatrends in technology and renewable energy are limited. Australia is in the box seat to provide resources, technology, education and services to support this growing demand,” Brinson added.

“With greater investment aligned to serve sustainable technologies such as solar energy and EVs, we see distruption in familiar patterns of copper demand.”