Why India’s EV and Green Energy Push is a Windfall for Copper Stocks

Copper Stocks: The shares of copper majors from Hindalco Industries to Vedanta Ltd surged as much as 2% in trade on Wednesday, July 29 as demand for this base metal is expected to triple by 2030.

The surge in demand for copper is largely driven by the rapid rise in renewable energy, electric vehicle, power transmission, construction, and manufacturing. Meanwhile, the requirement for refined copper demand is also expected to rise to 3–3.3 million tonnes by 2030 from the current 1.2 million tonnes.

On heightened demand expectations linked to copper, Vedanta Ltd, and Hindalco Industries stock surged as much as 2%. Meanwhile, the shares of Hindustan Copper Ltd rose as much as 1.29% to hit an intra-day high of Rs 479.35 apiece.  

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Why Is Copper Critical To India's Renewable Energy Ambitions

Copper proves to be an essential metal for renewable energy, serving as a primary conductor in solar, wind, and storage systems. Further, it is known to provide high electrical conductivity, supports massive grid integration, and requires up to six times more volume in green technologies than in traditional fossil-fuel systems.

In this sphere, India is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030.

On the other hand, the positive forecast for copper lies in the fact that it its crucial to India's EV adoption pace. Copper’s value in the EV ecosystem stems from its low cost compared to alternative metals, coupled with high durability, malleability, and conductivity.

The South Asian nation's EV market is forecasted to expand from US$ 3.21 billion in 2022 to US$ 113.99 billion by 2029, with a 66.52% CAGR. 

Notably, the demand for refined copper is expected to surge between 8.9-9.8 million tonnes mark by 2047.