What is the secret to Lady Liberty's unfading beauty that has allowed her to stand tall for more than a century?
It's the dynamic substance: Copper.
Today, copper is regarded as the economic barometer for the entire world as it is widely employed in the production of electronics, the distribution and storage of electricity, as well as in transportation and other modes of mobility. And since so many of its industrial uses are expected to experience exhilarating long-term growth, it is now being considered as a very intriguing investment opportunity.
Being the key driver of the electric vehicle revolution, Copper is prevalent in three key areas of electric mobility: charging infrastructure, energy storage and vehicle production.
According to the International Copper Study Group (ICSG), electric vehicles (EVs) utilize approximately four times more copper than cars with internal combustion engines. By 2040,50% of all new vehicles sold worldwide, up from today's5%, are expected to be electric vehicles, according to Wood Mackenzie. Thus, it is anticipated that this technological revolution will increase demand for copper. Within the next seven years, there could be a multiple-fold increase in the need for copper in EVs.
Figure 1: Copper Demand from Electric Vehicles is Poised for Growth
With emerging smart cities and their adaptation to new information technology solutions to solve urban problems of housing, energy, transportation and governance, copper has been the foremost solution.
From smart grids to air conditioning systems, and EV charging infrastructure to 5G optical fibers, copper’s demand is expected to grow to enable the development and efficient running of smart cities as shown in Figure 2.
Figure 2: Smart Citiesare Expected to Demand Increasing Amounts of Copper
In order to obtain the highest efficiency in power generation and transmission, copper is an essential component of renewable energy power generation systems like solar, wind, and hydro generators. It aids in lowering carbon dioxide emissions and the energy required to generate power.
The International Energy Agency (IEA) predicts that the globe will install about 200 Gigawatts (GW) of additional renewable electricity capacity in 2021, up from just over 50 GW added in 2007. More copper will be needed in order for the predicted development in the market for renewable energy to take hold (Figure 3).
Figure 3: Global Renewable Energy Market is Expected to Continue Growing Though there are two issuesto consider when it comes to sustainability: is copper use environmentally friendly and is there enough copper on the planet to supply the rising demand? Both inquiries have a loud "yes" as their response. Since the 1950s, the world has had enough copper reserves to last for, on average, 40 years. The 2019 U.S. Geological Survey estimates that there are 830 million tonnes of worldwide copper reserves, over five billion tonnes of copper resources, and 28 million tonnes of copper used annually. Copper will continue to be highly sought for as the globe pushes toward alternative energy sources. And although Copper as a resource may be recycled numerous times without losing any of its physical characteristics, this won't be enough to meet demand and provide a steady supply of copper.There will surely be a need to mine more copper in the coming future.
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