Is The Copper Story As Good As Everyone Says?

How does "energy transition metal in chronic shortage" sound?

Copper is about as old-school as it gets. A metal that was used as low-denomination coinage from the Roman Empire through modern times and as an electrical conductor since the invention of the light bulb, it’s been both in demand and relatively easy to find, basically forever. In other words, useful and important, but common and unexciting.

But those days are over. The world has decided to “electrify” by switching to electric cars, solar panels, and smart buildings full of sensors, meters, and cameras. EVs in particular use about four times as much copper in their batteries and wiring as conventional internal combustion engine vehicles.

This is not a fad. As you can see below, we spent nearly half a trillion dollars on EVs and charging stations in 2022, and barring a nuclear war or alien invasion, the trend will continue for at least another decade.

Governments, for their part, are insisting that the shift to EVs continue. The European Union recently banned sales of internal combustion engine cars in its member states after 2035. California just adopted basically the same rule. Getting from here to there in 12 years will mean a massive increase in EV sales.