9 Agustus 2023 – The electric vehicle (EV) revolution is charging ahead at an incredible pace, with global sales surpassing 10 million cars in 2022. This is expected to surge by 35% to reach 14 million this year, according to Global EV Outlook 2023 data published by the International Energy Agency. As concerns about carbon emissions and the allure of fuel and maintenance savings drive this explosive growth, a vital element stands at the forefront of this eco-conscious revolution – copper.
Traditionally, copper has been a fundamental component of EVs, particularly in battery packs where it connects hundreds of lithium-ion cells. However, the landscape is shifting with the rise of revolutionary solid-state batteries. These innovative batteries, lighter and more affordable than their counterparts, promise no compromises in performance or longevity. Surprisingly, their implementation will lead to a reduced requirement for copper, yet paradoxically, the overall demand for this essential metal in the EV sector is set to surge.
The allure of solid-state batteries lies in their potential to extend the driving range while slashing charging times. As this technology becomes more widespread, the transition from traditional combustion engines to electric vehicles will gain even more momentum, especially among private consumers. This surge in EV adoption will create a ripple effect, impacting the entire automobile supply chain and charging infrastructure.
Although the copper content within the batteries may decline, the metal will remain the top choice for essential components such as motor windings and “last mile” connections to charging stations. With an exponential increase in charging infrastructure on the horizon, both in urban centers and rural areas, the demand for copper is destined to skyrocket.
Fortunately, AMMAN is strategically positioned to meet this escalating demand head-on. Energy research firm Wood Mackenzie lists the Batu Hijau mine as the second-largest copper-and-gold mine in Indonesia, with the fifth-largest copper-equivalent reserves in the world when combined with the Elang exploration project. The ore-reserve data for the Batu Hijau mine and the Elang exploration project as of 31 December 2022, according to JORC Code 2012 (Australasian Joint Ore Reserves Committee), amounted to 17.12 billion pounds of copper and 23.2 million ounces of gold.
Through AMMAN’s subsidiary, PT Amman Mineral Nusa Tenggara (AMNT), the company is currently mining Phase 7 and developing Phase 8, which is expected to extend the life of the Batu Hijau mine until 2030. The company is also preparing to conduct mining operations in the Elang exploration project from 2031 to 2046.
Copper’s role in driving the green economy forward cannot be understated, and AMMAN will be a pivotal pillar of support in this transformative journey. As we embrace innovative technologies and witness the electrification revolution unfold, copper will continue to shine brightly as the backbone of sustainable transportation.
