COPPER CRUNCH

NEWS: The global shift towards Electric Vehicles (EVs) is essential for climate change mitigation, decarbonisation of transport, energy transition. However, there exists a hidden challenge severe shortage of copper (“Copper Crunch”)

copper is crucial

• Copper is indispensable for electrification because it has: High electrical conductivity, durability and recyclability
• It is used in EV batteries, electric motors, power electronics
• EVs require 4–5 times more copper than conventional internal combustion engine (ICE) vehicles

Explosive Growth in EVs vs Slow Copper Supply

• Global EV sales rose from 55 million (2015) → ~20 million (2025)
• EV-related copper demand increased from: 27,500 tonnes → over 1.28 million tonne
• Copper supply growth is slow due to: Underinvestment in mining (past decades), declining ore grades (less copper per tonne of ore), long gestation period (10–15 years to open a new mine), environmental opposition and regulatory hurdles

Comparison:

• European Union: ~210,000 tonnes
• United States: ~114,000 tonnes
• India: ~7,200 tonnes (very modest)

Copper Deficit Phase

• Causes: Declining ore quality, long mine development cycles
  • Environmental resistance in: Chile, Peru, United States
• Consequences: Higher EV costs, slower charging infrastructure rollout, threat to decarbonisation targets, copper becomes the main bottleneck of electrification