Bullish Copper, page-213

Digressing to the EV theme, here's yet another article highlighting the importance of copper for the coming EV boom.
Electric cars to put more upward pressure on copper price, says UBS

1st September 2017
Resources Rising Stars
As the copper price soared to a three-year high this week, a fresh report from UBS highlighted the role electric vehicles will play in future demand for the red metal.
UBS, which has buy recommendations on a host of ASX-listed copper stocks, said the electric vehicle phenomenon underpinned the need for new supplies.
The demand would stem from the vehicles, the charging stations and the power grid.
“In our view, copper has sound fundamentals that are set to be enhanced by electric vehicle take-up,” UBS said in its report.
“We estimate EVs will start to drive acceleration in demand growth in the early 2020s. Meanwhile, supply growth remains an ongoing concern in copper more so than many other mined commodities due to declining grades.”
UBS said that most of the opportunity lay in the copper in the vehicles themselves which, is ~90kg of copper compared with ~20kg for combustion vehicles.
“The charging stations we think will be predominately installed in the home and is ~1-5kg of incremental copper in a more or less 1:1 or 1:2 ratio with car sales.
“Lastly, the grid appears in a macro sense to be able to handle the charging task overnight. But more transformer capacity may be required locally in streets with high penetration.”

UBS said its work suggested that in 2025, a year for which it estimates global electric vehicle sales of almost ~15 million, EVs should drive ~1.6Mt of copper demand, or 1.2Mt incrementally including lower combustion vehicle sales.
“This is about 5% of annual copper demand we forecast for that year, which sounds modest,” UBS said.
“However, it implies an acceleration of demand growth sustainably above 3% pa versus the long term average of 2.5-3% CAGR. In the 2025e, this leads us to expect EVs could drive ~50% of demand growth.
“The supply growth task is that much harder in the face of declining grades.”