[MEDIA] As cars get more electric and more computer-like, they...

As cars get more electric and more computer-like, they tend to need more wires, which are made of copper. A typical gasoline-powered car has roughly 55 kilograms of copper wiring, according to Aptiv. An EV needs another 10 to 15 kilograms, roughly speaking. At current copper prices, which are up about 33% year to date, the difference in production costs is more than US$100 per vehicle.

That sound insignificant, but Ford Motor (F), for instance, makes US$1,000 to US$2,000 in operating profit per car, depending on the year. The copper increase eats away 5% to 10% of total operating profit. And that doesn’t factor in the complexity of having more wires in the vehicle.

Aptiv, however, has found a way to make an EV with less copper than a gasoline- powered car. They call it their smart vehicle architecture, or SVA. See PDF below.





Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.