Copper: The holy grail of EVs

Time of India

6 days ago

As electric vehicles (EVs) become more mainstream and automobile manufacturing pivots to electrification discarding its obsession with decades-old internal combustion engines, the current focus is on the availability of rare earths. Yet at the same time, the auto industry's search for copper has become a defining challenge and an opportunity—one that will define the next era of global mobility.
The criticality of copper for EVs is a pertinent and important issue for all EV manufacturers. copper makes up about 4–5 % of an EV's total weight (in a typical BEV), but a much higher share of the total raw material cost, since copper is far more valuable than steel or aluminum. The material's unmatched qualities of electrical conductivity, durability, malleability and affordability make it indispensable across a wide spectrum of EV components.
It is far more cost competitive than gold and silver, with similar conductive qualities. Thus, in every EV, copper is central to battery packs, electric motor windings, inverters, high- and low-voltage wiring harnesses, charging cables, busbars, and the charging infrastructure.
Copper is extensively used in electric motor windings because it creates a magnetic field that drives the motor. The higher the quality of the material used, the more efficient the motor operates, which translates into better performance, longer range, and lower energy consumption, ideal for any EV. Copper's excellent thermal conductivity allows for efficient heat dissipation, preventing overheating and ensuring optimal performance under different conditions.
The electrical conductivity of copper, for instance, is 59.6 MS/m (million Siemens per meter), whereas that of aluminium, its closest alternative, is about 37.8 MS/m. Hence, an aluminium wire must be 63% thicker to carry the same amount of electricity, which increases both the weight and bulk of the EV. (1). Copper therefore offers an advantage in terms of high strength to weight ratio, which enables EV manufacturers to reduce the overall weight of the vehicle without compromising upon performance or safety.
Similarly, copper plays a vital role in charging infrastructure, such as EV charging cables and connectors. The metal's excellent conductivity allows efficient power transfer from the charging stations to cars, thereby reducing charging times and optimising energy usage. To enhance the transmission power of the EVs, the auto manufacturers are increasing the usage of copper worldwide.
Copper also plays an important role in EV inverters, which convert the battery's DC power to AC for the motor, as well as in various power electronics used throughout the vehicle. Copper is also important in wiring for power distribution, control systems, and data transmission. A fully electric vehicle can contain up to a mile of copper wiring, supporting everything from propulsion to infotainment and safety systems.
Batteries constitute the core and most expensive component of every EV. Most electric vehicles use lithium-ion batteries, which require copper in several ways such as current collectors to efficiently conduct electricity from the battery cells to the vehicle's powertrain. It is also used as an electrode material, enhancing the battery's performance and longevity with its ability to withstand repeated charging and discharging cycles without the need to replace them.
Thus, compared to a traditional internal combustion engine (ICE) vehicle that contains around 23–30kg of copper, a typical battery electric vehicle (BEV) contains between 60–83kg, while hybrid and plug-in-hybrid models also well exceed traditional usage. Hence, the EV sector is expected to see a compound annual growth rate (CAGR) of 14.3% in copper consumption through 2034, outpacing other energy transition sectors such as solar and wind.
As the demand for copper rises, India stands at the cusp of a transition to battery-powered cars powered by government subsidies and a production-linked incentives (PLI) scheme. The country, too, will face rising demand and its dependency on imports will mount, unless steps are taken immediately. Already, India had a trade deficit of $ 6.8 billion, with imports of copper and its products increasing by 21% (in value terms) in FY 2024.
Moreover by 2030,
India's copper demand
is projected to double from current levels, with estimates indicating domestic consumption could reach roughly 1.5 million tonnes per year, while current production is only about 555,000 tonnes annually. This suggests a potential demand-supply gap of nearly 1 million tonnes per year by 2030 without major interventions.
Given this major shortfall, it is time for the Indian authorities to prepare a long-term action plan for sourcing copper as a part of its overall copper strategy to ensure adequate supply to meet the copper demand for the future. incentivizing domestic copper smelting, refining, and fabrication industry through capital or production-linked incentives will attract further investment and new players in this sector.
Experts opine that maximising the potential of existing but underutilized local plants could go a long way in bridging this gap. The 2018 closure of Vedanta's Sterlite plant in Tuticorin, Tamil Nadu, resulted in the loss of over 46% of India's copper production capacity, making the country a net importer of refined copper. Reopening the 40 -lakh tonne smelter capacity, with measures in place to address the identified challenges, could easily provide easy source of refined copper. All stakeholders could sit together and find solutions.