The bullish thesis for #Copper
The average conventional internal combustion engine (#ICE) vehicle contains around 20kgs of #Copper. The average hybrid vehicle uses around 40kgs, 2 times higher than an ICE. The average pure battery powered #EV contains around 80kgs, producing a copper coefficient 4 times the ICE level.
Global EV fleet will expand from approximately 1 million vehicles today to around 140 million in 2035. That would displace about 2 million barrels of oil demand per day in that year, worth about US$37 billion annually at today’s prices in a US$1¾ trillion market.
However, those same vehicles will consume around 11 million tonnes of copper in their production. Subtracting the copper that would have been used in the ICEs ‘displaced’ by EVs, and that figure comes down to around 8½ million tonnes of genuine new demand – worth around US$38 billion dollars at today’s copper price. That 8½ million tonnes is equivalent to around one-third of total refined copper demand today.