Electric vehicle copper demand intact, trader IXM By Reuters says

By Pratima Desai

LONDON (Reuters) – The upward trend in demand for metals such as those used in electric vehicles is intact despite doubts raised by slowing electric vehicle sales, but estimating numbers is difficult as the market evolves, metals chief said fine goods merchant IXM.

Electric vehicle sales have slowed for reasons including a lack of charging infrastructure and concerns about resale values.

“The electric vehicle industry is new. There are a lot of variables, including penetration rates and battery chemistry, which makes forecasting demand a guessing game,” said Tom Mackay.

“Electric vehicle sales growth is slowing, but sales are still growing. It varies from region to region, but overall growth is strong and the demand story for metals is healthy.”

According to consulting firm Rho Motion, sales of battery electric and plug-in hybrid electric vehicles rose 32 percent last year to 13.63 million units, while sales fell in the first and second quarters of this year. by 25% and 22%, respectively, compared to the previous quarters. .

Copper is used in electric vehicle wiring. It is also used in batteries, which usually contain lithium and, depending on the chemistry, nickel and cobalt.

“There have been some impressive technological advances in LFP (lithium ion phosphate) chemistry. Some LFP batteries can last 1,000 kilometers and some can charge up to 80% in 10 minutes,” said Mackay, who manages the copper cathode, zinc, lead. nickel, cobalt and lithium cards at the trader in switzerland.

LFP batteries were developed for the Chinese market to provide a cheaper alternative to nickel cobalt manganese (NCM). But previous LFP batteries could not be used for long distances.

“People still think that demand for batteries in the Western world will continue to be predominantly NCM, if only because of the higher recycling value of NCM batteries,” Mackay said.

“Recyclability is a very important factor for car manufacturers when deciding which chemicals to use.”

Mackay added that the number of people working at IXM globally is down from before, at around 440.

“The focus was on the quality of the people. We got out of the aluminum business because it wasn’t bringing us the necessary return on resources.”