Copper In Electric Vehicle Market Size, Share & Trends Analysis Report By Product, By Vehicle, By Region, And Segment Forecasts, 2021 To 2028

The global copper in electric vehicles market growth is attributable to the increased production of electric vehicles (EVs) worldwide and the superior characteristics of copper. The metal enhances energy efficiency when used in any system, thus, optimizing lifecycle costs and helping in reducing greenhouse gas emissions.

Increasing emphasis on greener transportation is propelling the growth of the EV market. For instance, the EV sales grew by 168% in the first half of 2021 compared to 2020. Growing government initiatives toward the adoption and production of EVs in various countries such as China, India, and the U.S. are further aiding the market growth.

Copper In Electric Vehicle Market Segmentation

Compared to an internal combustion engine (ICE), EVs use double the amount of copper. High electrical conductivity is increasing the metal’s usage in wiring applications as the incorporation of electronic systems has rose in EVs. Furthermore, the metal finds application in EV infrastructure as well.

Based on type, the market is segmented into battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PEVs), and hybrid electric vehicles (HEVs). The amount of copper varies from vehicle-to-vehicle. On an average, a BEV has 183 pounds of copper in it, followed by PHEVs and HEVs with 132 pounds and 85 pounds respectively.

The copper content is bound to be high in commercial EVs compared to passenger EVs. For instance, its content in a battery electric bus is over 800 pounds, whereas in a hybrid electric bus it is nearly 200 pounds. Growing electrification trend in commercial vehicles, is expected to positively influence market growth over the forecast period.

In 2020, registrations of electric buses increased by over 18% in the European Union, reaching 1,714 units. With this, the share of electric buses increased to 6.1% of the total buses sold in the EU. Increasing sales for electric buses has encouraged manufacturers to expand their production capacities in the region.

For example, in December 2020, BYD delivered 246 of the 259 electric buses to Keolis Nederlands BV. Growing demand for electric buses has encouraged the company to increase its production capacity. In the same month, the company announced its plans to expand annual capacity at its Hungary plant from 200 to 1,000 electric buses. Such investments are expected to spur copper consumption in EVs over the coming years.

Based on application, the market is segmented into electric motors, batteries, wiring, charging stations, and others. Wiring is anticipated to witness high growth rate over the coming years on account of increase in electric components in EVs. According to the Copper Development Association Inc., an EV can contain over one mile of copper wiring in its stator windings.

Furthermore, the metal is used in charging cable as well. Growing number of EVs on the roads is anticipated to spur the construction of charging stations as well. The number of charging stations are expected to reach 20 million in the world by 2030, which is anticipated to positively impact the market growth over the forecast period.

Based on region, the market is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. Europe is emerging as a lucrative market. The region surpassed China in terms of EV sales in 2020. Growing emphasis towards EV adoption in Europe is anticipated to augment its manufacturing in the region and thus, positively impact market growth.

Governments in the Europe are introducing new targets in different countries to increase EV market share. For instance, the UK Prime Minister announced plans to stop sales of gasoline and diesel vehicles by 2030. Also, in Germany, a budget of EUR 130 billion was unveiled that includes subsidies for buyers of EVs. Norway has planned to remove gasoline vehicles by 2025. Such initiatives to augment the growth of EV industry are expected to benefit market growth over the forecast period.

The demand for copper is rising in many industries including EVs and thus, the competitive rivalry is high for the market. There are globally established market players who are engaged in increasing their market share and expanding their customer base. Some of the key copper producers include Rio Tinto, Codelco, BHP, Glencore, and Southern Copper Corporation.

Increasing demand for copper is propelling its production and causing a surge in prices, thus, fueling competitive rivalry in the market. As of July 2021, copper prices increased by 21% compared to 2020. Numerous projects are in line to expand the metal’s production to cater growing demand. For instance, in June 2021, Zijin Mining Group Co. announced expanding its Serbian copper business by 2024.

Copper In Electric Vehicle Market Report Scope