EV boom in India: Is it profitable proposition for copper wire industry?

India being a 1.3 billion nation has always been a hot spot for the leading business leaders around the world. Recently Amazon India announced to bring delivery 10,000 electric vehicles during the last visit of Jeff Bezos to India. This would bring revolution for the environment as well in the copper wire industry.

They are aiming at building a supply chain that would eventually minimize the harmful environmental impact. This would be effective by 2025 but we can see a good future from now onwards. These will include 3 and 4 wheeler vehicles which will be manufactured in India. Hence a good prospect for the manufacturing sector and will improve the employability rate.  

But let’s get back to our major concern i.e. how it will boom our copper industry. EV technology is if not solely but heavily reliable on copper wire and plummeting the overall copper demand. As one in every 6 cars will be requiring the deployment of more electric chargers. This will make copper wire the major component of the “Green Economy” in India which is the first and foremost requirement in the upcoming 5-10 years.

A fossil-fueled vehicle uses copper in a negligible amount. An electric vehicle consumes 4 times less copper than a normal fossil-fueled vehicle. Now one can easily estimate that the level of surge it would bring in the copper wire industry. Let’s see this through the numbers like conventional cars contain 20-50 pounds of copper whereas a typical electric vehicle contains 85 pounds of copper. This is not it, a plug-in hybrid electric vehicle uses 130-140 pounds of copper and a battery-electric vehicle contains the most 180 pounds of copper.   

The public charging stations also demands a lot of copper wire and involves a budget that reaches up to millions. According to the estimates of IEA (International Energy Agency) EV sales and hence copper wire sales are going to be quadrupled.

In addition to the copper wire in the engine, copper wiring is utilized to connect the electronics and battery packs. As electricity is delivered by a series of wiring primarily composed of copper wire. This will lead to an increase in copper demand by 22% when compared to the current market size.

If we see the bigger picture and talk about the country as a whole then it would be a boost to our economy and a strong mutual business relationship will be built and will bring more companies to invest in India.