As countries worldwide accelerate their transition towards electric vehicles (EVs) to achieve net-zero carbon emissions by 2050, industry experts warn of an impending shortage of copper, a critical component in EV manufacturing. With global copper production facing challenges from mine closures and reduced forecasts, coupled with Chinese production cuts, the market is witnessing a significant supply-demand gap.

Copper prices have surged by 22% since March, hovering around $10,000 per tonne, reflecting the heightened demand driven by green energy initiatives. Studies project a doubling of copper demand by 2035, primarily fueled by the EV sector, which requires five times more copper than traditional internal combustion engine vehicles.

To address the supply-demand disparity, industry stakeholders advocate for Vietnam to play a more active role in the EV supply chain, emphasizing the need for investments in battery technology and copper refining. Despite having refining capacities, Vietnam heavily relies on imported copper, highlighting the urgency for domestic production enhancement to meet future demands.