A Mega Bullish Case For Copper
The following is an excerpt from “Commodities and Soon Juniors in Vogue” (February 23, 2021),
an article by Richard (Rick) Mills, from AheadOfTheHerd.com
A green infrastructure spending push will mean a lot more energy metals will need to be mined, including lithium, nickel and graphite for EV batteries; copper for electric vehicle wiring and renewable energy projects; silver for solar panels; rare earths for permanent magnets that go into EV motors and wind turbines; and tin for the hundreds of millions of solder points necessary in making the new electrified economy a reality.
Copper’s widespread use in construction wiring & piping, and electrical transmission lines, make it a key metal for civil infrastructure renewal.
The continued move towards electric vehicles is a huge copper driver. In EVs, copper is a major component used in the electric motor, batteries, inverters, wiring and in charging stations. An average electric vehicle contains about 4X as much copper as regular vehicles. Electrification includes not only cars, but trucks, trains, delivery vans, construction equipment and two-wheeled vehicles like e-bikes and scooters.
According to the Copper Development Association (CDA) a high-speed train required 10 tonnes of copper components, plus another 10t in the power and communication cables per kilometer of track. Even the most basic gasoline-powered passenger car requires a kilometer of copper wiring, and between 15 and 28 kilos of copper, depending on its size. A traditional internal combustion engine cannot be built without 23 kg of Cu.
BloombergNEF forecasts by 2040 there will be a need for 12 million charging points, each requiring about 10 kg of copper. The number of charging stations recently passed the one million mark.