Role of Copper in Electric Transportation

Electric vehicles are transforming the global transportation landscape, driven by advances in technology, environmental goals, and shifting consumer demand. At the core of this transition is copper, a vital material that enables efficient power delivery, battery performance, and charging infrastructure.

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This article examines the key uses of copper as a commodity in EVs, the health, environmental, and economic benefits of electric transportation, the associated risks, and the latest trends shaping EV development globally and in Indonesia.

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Key Uses of Copper in EVs

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1. Electric motors: Copper commodity is a critical component in EV motors, particularly in stators and rotors. Its high electrical conductivity enables efficient energy conversion, reducing power losses and improving vehicle performance.

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2. Battery motors: Copper is widely used in battery wiring, connectors, and thermal components. It supports stable power flow while managing heat, enhancing battery safety, efficiency, and lifespan.

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3. Charging infrastructure: The expansion of EV charging networks has increased demand for copper to efficiently. High-capacity,  fast-charging stations depend on copper to transfer large amounts of electricity from the grid to vehicles.

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4. In-vehicle wiring: EVs require extensive wiring to support advanced electronics, such as driver-assistance systems, infotainment, and navigation. Copper ensures reliable, safe, and efficient electrical connections throughout the vehicle.

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5. Thermal management: Copper’s excellent thermal conductivity effectively dissipates heat generated by batteries and power electronics, helping maintain safe operating temperatures and long-term system reliability.

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Benefits of Copper in Electric Transportation

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1. Less Pollution

Electric transportation offers wide-ranging benefits across health, environmental, and economic dimensions. From a public health perspective, EVs significantly reduce air pollution.

Battery Electric Vehicles produce zero tailpipe emissions, while Hybrid and Plug-in Hybrid vehicles emit far less than conventional cars. This reduction improves air quality around homes and businesses, particularly in urban areas, and lowers health risks linked to respiratory and cardiovascular diseases.

EVs also generate less brake dust due to regenerative braking, further reducing particulate pollution.

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2. Supports Sustainability

Environmentally, EVs help address greenhouse gas emissions that drive climate change. The benefits of copper as a commodity in EVs and charging infrastructure also support sustainability, as copper is highly durable and recyclable without loss of  performance, thereby reducing long term environmental impact.

Although impacts vary by region, many communities especially rural ones are already experiencing more frequent wildfires, flooding, extreme heat, and droughts. Transitioning to electric transport supports long-term emissions reduction and climate resilience.

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3. Stronger Economic Conditions

Economically, EVs contribute to more substantial  economic activity. Lower fuel and maintenance costs, government incentives, and a growing resale market improve affordability for consumers. At the same time, EV adoption stimulates job creation, infrastructure development, and innovation across multiple sectors of the economy.

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Read also: Copper ETFs: What They Are and How They Work

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Risk of Copper in Electric Transportation

While electric transportation offers many advantages, it also introduces specific risks that require careful management when using the copper commodity.

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1. Fire Safety

One key concern is fire safety. EV fires, although relatively rare, can occur due to battery or charging system malfunctions, manufacturing defects, overheating, or damage from accidents, with copper wiring and connectors playing a critical role in safely managing electrical current and heat.

Improper repairs, unauthorized modifications, poor battery handling, and faulty charging equipment can further increase these risks. Because EV batteries store high amounts of energy, failures can be more complex to manage and may require specialized emergency response.

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2. Cybersecurity

Another growing concern is cybersecurity. Modern EVs are highly connected, relying on software, internet access, and digital platforms for navigation, charging, monitoring, and system updates.

This connectivity exposes vehicles to potential cyber threats, including unauthorized access, malware, ransomware, and denial of service attacks. Public charging stations and mobile applications may also become entry points for data breaches, putting personal and vehicle information at risk.

Addressing these risks requires strong safety standards, secure system design, and responsible user practices.

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EV Trends and Developments

EVs are increasingly central to global efforts to achieve net-zero emissions by 2050, prompting governments and industries to accelerate development and adoption. This momentum is already visible in market growth.

In 2024, global EV sales increased by about three million units, lifting annual sales to approximately 17 million vehicles and pushing EVs beyond 20 percent of new car purchases. By the end of the year, the global EV fleet had grown to nearly 58 million cars.

Strong policy support, incentives, and large-scale investment are driving this expansion, attracting interest from both established automotive manufacturers and emerging startups.

The broader EV ecosystem now spans vehicles, components, raw materials, batteries, and charging infrastructure. However, parts of this market remain relatively speculative, requiring investors to assess technological, regulatory, and market risks carefully.

In Indonesia, EV development is also gaining traction. The government aims to deploy two million electric cars and twelve million electric two wheelers by 2030, focusing on emissions reduction through battery manufacturing, infrastructure readiness, and improved affordability.

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Read also: How to Invest in Copper to Diversify Your Portfolio?

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Conclusion

As electric transportation continues to expand, copper commodity remains a critical enabler of EV performance, safety, and reliability. While the shift to EVs offers clear benefits in reducing emissions, improving public health, and supporting economic growth, it also introduces new challenges related to safety, cybersecurity, and market uncertainty.

Understanding these dynamics alongside evolving global and regional trends to helps policymakers, investors, and consumers navigate the transition toward a cleaner, more electrified transportation future.