Increased demand for electric vehicles will drive up the price of copper

The cost of copper is expected to increase in the coming years Enhance energy transmissionespecially because of its high penetration electric vehicle and global commitment to renewableAccording to a report by Swiss bank Julius Baer.

Copper, a metal that plays a role A major role To develop the electric vehicle, both for its function in manufacturing batteries and motors and in Loading equipment so is it Connection to the electrical networkbarrier can be overcome 10,000 dollars per ton at the long term.

The current price of copper is about $8,300 a ton, close to a 14% less than a year ago, when it reached $9,600. On March 7, the price of copper reached its maximum ceiling, with $10,845 While it recorded its lowest level on July 15, when it was paid at $6,955. Looking to the coming years, the increase in the price of copper will occur due to expectations that supply will be “structurally below” demand until Mid 30s.

As the Swiss bank explained, the demand for copper in the next two decades will be determined by two factors: the energy transition – led by electric vehicles and renewables – and the Chinese market, where Demand for this mineral will slow down due to the slowdown in urbanizationhaving reached a “demographic, economic and political tipping point”.

Regarding the first factor, Julius Baer estimates that 85% of all cars sold in 2040 will be electricWhich needs up to 35 kilograms of copper more than conventional vehicles, which will push the sector to consume more than four million tons of this metal. In the year 2040, compared to 0.5 million currently. Thus, the share of the energy transition in global copper demand will go from the current 7.5% to concentrate near 20% in 2040.