An excerpt From Energy and Capital by Jeff Siegel:
You see, electric vehicles use a lot of copper. A lot more than internal combustion vehicles, too. Most internal combustion engines require about 55 pounds of copper. An electric car, like the Tesla Model S, requires about 165 pounds of copper — or about three times as much as an internal combustion vehicle.
Rest assured, my friend: this reality puts huge smiles on copper producers.
The International Copper Association recently reported that in just 10 years, copper demand from electric cars and buses will reach 1.74 million tonnes. That’s compared to just 185,000 tonnes today, thereby representing a compound annual growth rate of 25.12%. That’s huge!
The bottom line is that if you find the data on electric vehicle growth to be sound, then you likely see a catalyst for increasing copper prices.