Copper Price Surge Sends Shockwaves Through EVs, ACs, and Home Construction

Copper prices have surged to record levels, reaching around $14,858 per tonne before easing to about $14,240. This rally is driven by concerns over global supply, strong demand from electrification and infrastructure, and uncertainty over possible US tariffs on copper.

The impact of rising copper costs could be particularly visible in Kerala, where demand for electric vehicles, air conditioners, and rooftop solar systems is growing. Electric vehicles face the biggest pressure due to their extensive use of copper in motors, wiring, batteries, and electrical systems.

A conventional petrol or diesel car typically uses around 20-25 kg of copper, while some electric cars require 80-85 kg. The increase in copper prices could add ₹10,000-₹13,000 to the manufacturing cost of a conventional car, while the impact on some EVs could exceed ₹40,000.