Australia's OCE anticipates EV growth boosting aluminum, nickel, copper demand
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Update time : 2023-10-10 16:08:27
Australia's Office of the Chief Economist (OCE) predicted the strong requirement for electric vehicles (EVs) will increase the demand growth for aluminum, nickel, and copper in the following two years.
According to OCE's latest Resources and Energy Quarterly report, global EV sales are expected to double to 23 million units per year in 2025 from 11 million units per year in 2023. This will boost the demand for aluminum, which is much lighter than steel, as automobile manufacturers seek to produce lighter EVs to increase driving range by using more aluminum.
OCE anticipated there will be a rise in aluminum prices as well as alumina and bauxite export volumes, which will increase the export value of Australian aluminum, alumina, and bauxite from AUD 16 billion in 2023-24 to AUD 17 billion in 2024-2025.
Supported by the planned and ongoing infrastructure demands as well as a strong EV demand, global copper consumption is expected to rise by 1.9% per year by 2025. OCE forecasted Australia's copper export values to grow from AUD 12.3 billion in 2022-23 to AUD 12.5 billion in 2023-2024.
Driven by the growth of EVs globally and construction, industrial, and manufacturing industries in Asia, OCE also foresaw the worldwide refined nickel consumption to increase by an annualized rate of 5.9% to 3.5 million tons per year by 2025.
