Government's EV target poses good news for the copper industry

Copper has been a long-standing and valuable resource for many years, with its numerous uses in electrical appliances driving demand.

And with the government making ambitious plans for electric vehicle uptake in Australia, the need for copper is likely to increase in the coming years.

Plans for change on Australia’s roads


The increase in copper demand arrives with Australia’s future fuels and vehicles strategy. The ultimate goal is to put close to two million zero-emission vehicles on the country’s roads before 2030. 

Australian road-1-1

The Future Fuels Fund seeks to increase the uptake of vehicles including electric, bio fueled, hydrogen and hybrid. 

With such an increase in electric vehicles, there will be an increased demand for copper. 

Benefits of copper in EVs


Using copper in electrical and other zero-emissions vehicles will hold numerous benefits for the consumer, the industry and the environment. Having a renewable and, above all, effective resource with copper will encourage consumer choice with their vehicles. This also paves the way for a strong increase in the development of specific industries and jobs for Australia. 

Perhaps one of the biggest turning points in the government’s Future Fuel Fund strategy is its implications for the environment. For years, the nation has seen a gradual decline in fossil fuel-reliant options for transportation, and this scheme provides an integral stepping stone in the long term environmental approach. 

The use of copper in the renewable energy sector is imperative, and other key battery metals such as nickel and lithium are also set to increase in value as the scheme is put into place over the next decade.


The demand for more copper


This increase in electric vehicles and the options for consumer choices in transport means a subsequent increased demand for copper. The price for copper will likely rise as a result, which promises to be positive news for copper investors and copper mining companies alike.

The Resources and Energy Quarterly report from September 2021 finds that “copper prices have surged in 2021” and are expected to “retain most of this gain in the years ahead, with demand supported by economic recovery and the expanding use of copper in low-emissions technology”. 

Additionally, the report finds that copper exports are expected to make a significant rise as early as next year. It said, “Export earnings are forecast to rise from $11.4 billion in 2020–21 to $14.4 billion by 2022–23.” 

This is excellent news for the copper and battery metal industry, and the global move to lower-emission technologies and electric vehicles implies that this figure may continue to rise in the future.


Locksley Resources Limited (ASX:LKY)

Barclay Pearce Capital's client Locksley Resources Limited (ASX:LKY) is an Australian exploration company. They are focused on identifying and assessing opportunities for the acquisition, exploration and development of copper and other mineral resources projects in Australia that have the potential to deliver significant growth for shareholders.

Locksley Resources (LKR)

Locksley Resources was incorporated in October 2018 and has acquired 100% legal and beneficial interest in the highly prospective Tottenham Copper-Gold Project.


To keep up to date with Locksley Resources' news and progress, and for more information about copper investment as a whole, subscribe to the Locksley Resources Limited Chairman's List.