HomeRegional NewsAfricaCopper to drive global EV market growth, recording 7.4% by 2030

Copper to drive global EV market growth, recording 7.4% by 2030

Research on electromobility (e-mobility) reveals that copper is poised to play instrumental role in three key domains – charging infrastructure, energy storage, and production of electric vehicles (EVs).

A new study by ESOMAR-certified market research firm further reveals that global copper foil sales will grow at 7.4% CAGR through 2030.

Growing application in e-mobility will be one of the key factors driving the growth of copper foils globally.

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Counting on copper: Renewable energy and EV boom drive demand

Other key highlights of study include:

  • Application of copper foils in batteries to rise rapidly through 2030;
  • Accelerated shift towards e-mobility to offer potential opportunities of growth in near future; and
  • North America and Europe to reflect significant investment prospects, given flourishing EV market.

Electrification is considered as the most feasible way to achieve efficient and clean transportation that is critical to sustainable development worldwide.

In the near future, EVs including, plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and pure battery electric vehicles (BEVs) are expected to lead the clean vehicle industry in coming years.

EVs contain nearly four times as much copper compared to that in fossil-fueled models, majorly utilised in lithium-ion batteries (LIB), rotors, and wiring. In addition, the International Energy Agency (IEA) estimates that LIBs are slated to predominate the EV market over the following decade.

As such trends sweep across the business landscape, manufacturers of copper foils are moving aggressively and creating comprehensive strategies to maximise their odds of capturing value at stake.

Sales stay afloat as EV industry defies COVID-19 threat

From European manufacturers (BMW and Renault) to their Asian counterparts (Toyota and Hyundai) as well as US companies including General Motors, have registered and are anticipating staggering sales and interest in EVs and relevant ‘new energy’ automobiles amidst the COVID-19 crisis.

“Batteries hold immense potential to significantly decarbonise transport and power systems. Deployment of EVs is seeing greater pace in several countries, especially in the US, China, and European countries. Recent data suggest that worldwide sales of EVs are expected to touch 6.2 million units by 2024 – nearly thrice greater than the volume sales in 2019,” says a Future Market Insights analyst.

In addition, the study finds that about 2/3 of vehicles worldwide are poised to be electric by 2040. EVs are reported to be weathering the COVID-19 storm better versus conventional internal combustion (IC) engine vehicles.

Consequently, LIB demand stands to benefit, and copper foils – as a key component part of these batteries – will remain in high demand in coming years.

Copper foil market – competitive intelligence

The global copper foil is fairly competitive, with presence of several regional and international players striving to achieve economies of scale. As the market is set for supply headwinds due to notable rise on-road EVs in coming years, market players are honing in on capacity expansions and strategic acquisitions and investments.

  • KCF Technologies (KCFT) has started off large-scale production of 4-micrometre (μm) copper foils for EV batteries.
  • SK Holdings Co. is looking to allocate additional investments in Lingbao Wason Copper Foil Co. (a leading Chinese copper foil manufacturer) in order to ensure security in primary materials required for rechargeable batteries.
  • In addition, the company has acquired 100% shares of KCF Technologies Co., which is the global leading producer of copper foil for LIBs, in a bid to diversify its product portfolio.

Read the full report.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.