The shift to electric vehicles (EVs) is transforming the automotive industry—and with it, the global demand for metals. Traditional internal combustion engine (ICE) vehicles rely heavily on steel, aluminum, and cast iron, but EVs introduce new material needs, particularly for lightweight metals and battery-critical minerals.
As automakers scale up EV production, the demand for certain metals will rise sharply while others may decline, forcing suppliers to adapt. In this blog, we’ll explore how EV manufacturing is reshaping metal demand, which materials are gaining importance, and how the metal industry is preparing for this shift.
Why EVs Are Changing Metal Demand
Electric vehicles have fewer moving parts than gasoline-powered cars, but they require different materials to improve battery performance, reduce weight, and extend range.
🔹 Key Differences Between EVs and ICE Vehicles:
✔ Batteries replace internal combustion engines, increasing demand for lithium, nickel, and cobalt.
✔ Lightweight materials become crucial to offset the weight of battery packs.
✔ High-strength metals are needed to improve safety without adding bulk.
💡 Example: A Tesla Model 3 uses more aluminum and high-strength steel than a traditional sedan but less cast iron and conventional steel.
Metals That Will See Higher Demand
1️⃣ Aluminum – The Key to Lightweight EVs
EV manufacturers use more aluminum to reduce vehicle weight and improve battery efficiency.
✔ Lightweight yet strong – Helps offset heavy battery packs.
✔ Corrosion-resistant – Ideal for battery enclosures and chassis components.
✔ High recyclability – Aligns with sustainability goals.
💡 Example: Tesla and Rivian use aluminum-intensive designs, including gigacastings for their vehicle frames.
📈 Projected demand increase: 30-50% by 2030 due to the rise of EVs.
2️⃣ Nickel, Lithium, and Cobalt – Essential for EV Batteries
The heart of every EV is its lithium-ion battery, which depends on nickel, lithium, and cobalt.
✔ Nickel improves battery energy density and range.
✔ Lithium is the primary element in lithium-ion batteries.
✔ Cobalt enhances battery longevity and safety.
💡 Example: The Tesla Model Y Long Range uses a nickel-rich NMC (nickel-manganese-cobalt) battery for extended driving range.
📈 Projected demand increase:
Nickel: 2-3x growth by 2030
Lithium: 400% increase by 2035
Cobalt: Potential shortages due to supply constraints
3️⃣ Copper – Powering EV Infrastructure
EVs use more copper than gasoline vehicles due to their electrical wiring, motors, and charging systems.
✔ Copper wiring is used in EV motors, battery packs, and charging stations.
✔ Fast-charging infrastructure requires copper-heavy power cables.
💡 Example: An EV contains 2-3x more copper than a gasoline-powered car, mainly in its electrical components.
📈 Projected demand increase: 50% rise in copper consumption by 2030.
4️⃣ High-Strength Steel – Balancing Safety and Weight
While aluminum is increasing in use, high-strength steel (HSS) remains crucial for EV safety and crash resistance.
✔ Ultra-high-strength steel protects passengers while keeping vehicles lightweight.
✔ Battery enclosures require durable steel structures for crash protection.
💡 Example: Ford’s Mustang Mach-E and Volkswagen’s ID.4 use a mix of HSS and aluminum for a light yet strong body.
📈 Projected demand: Steady demand for high-strength grades, lower demand for conventional steel.
Metals That Will See Lower Demand
1️⃣ Cast Iron – Declining as EVs Replace ICE Components
EVs don’t require heavy iron engine blocks or exhaust systems.
Lighter materials like aluminum and composites are replacing cast iron.
📉 Projected demand drop: Significant decline as ICE production decreases.
2️⃣ Platinum and Palladium – Less Need for Catalytic Converters
Gasoline and diesel vehicles use platinum and palladium in catalytic converters to reduce emissions.
EVs don’t need catalytic converters, reducing demand for these metals.
📉 Projected demand drop: 20-50% decrease by 2035, depending on EV adoption rates.
How Metal Suppliers Are Adapting to EV Demand
✅ 1. Expanding Battery Metal Supply Chains
Investing in lithium, nickel, and cobalt mining.
Developing battery recycling programs to recover metals.
💡 Example: Major mining companies are ramping up lithium extraction in Chile, Australia, and China.
✅ 2. Increasing Aluminum and High-Strength Steel Production
Investing in high-strength alloys for automotive structures.
Enhancing aluminum recycling programs to meet sustainability targets.
💡 Example: Aluminum producers like Alcoa and Norsk Hydro are expanding production to meet EV demand.
✅ 3. Strengthening Copper Supply Chains for EV Infrastructure
Boosting copper mining to support EV production and charging networks.
Exploring alternative conductive materials to reduce reliance on copper.
💡 Example: Governments worldwide are investing in copper-heavy EV charging grids to support electrification.
Final Thoughts: The Future of Metal Demand in the EV Era
The rise of electric vehicles is reshaping the metal industry, increasing demand for aluminum, battery metals (lithium, nickel, cobalt), and copper, while reducing the need for cast iron and catalytic converter materials.
🔹 Key Takeaways:
✔ Aluminum demand is rising for lightweight EV structures.
✔ Battery metals (lithium, nickel, cobalt) are crucial for EV growth.
✔ Copper usage is increasing due to EV wiring and charging networks.
✔ Traditional automotive metals like cast iron and platinum are declining.
🚗 As EV adoption accelerates, metal suppliers must adapt to new demand trends to stay competitive in the evolving automotive landscape. 🔋⚡
