Electric Vehicles Are Facing a Critical Copper Constraint

The race to net zero emissions largely relies on the electric vehicle movement.

But with adoption of electric vehicles surging in the United States, there is one important piece of the puzzle that is often overlooked: copper.

Electric vehicles require incredible amounts of copper, whether it’s for energy storage, charging infrastructure or the production of new vehicles.

And it’s becoming increasingly difficult to find. Which means Majuba Hill Copper might be in the right place at the right time.

Context:

  • The demand for copper is growing significantly faster than new supply is being produced on a global scale
  • This imbalance has placed new found importance on existing copper discoveries, as bringing new mining discoveries and operations into production is a lengthy process
  • Recent research from McKinsey predicts a copper shortfall as large as 50M tonnes by the end of this decade

Why it matters:

  • The energy transition simply can not happen without copper and there is a enormous dislocation between supply and demand
  • The United States Department Of Energy recently declared copper as a new critical material due largely to its importance in getting closer to net zero emissions
  • In the absence of being able to rapidly scale up copper discoveries and producing mines, it is likely there will be a significant shift in copper prices as demand begins to ramp up globally

Going deeper:

  • If the world wants to get to net zero emissions by the stated timeline of 2050, then there needs to be more copper mined in the next two decades than has been mined so far in the history of the world

By the numbers:

  • On average, electric vehicles use about 4x more copper than fuel powered vehicles
  • A Tesla Model S uses one full mile of copper just to connect the battery to all the electronics in the vehicle, and over 80kg of copper in total
  • For Tesla to reach their production targets they would need roughly 9% of the world’s copper production per year

The intrigue:

  • Majuba Hill sits just 120 miles northeast of Tesla’s (NASDAQ: TSLA) Gigafactory in Nevada

What’s next:

  • Majuba Hill is located in northern Nevada in a renowned area for high grade metals and minerals with private property claims that span over 9000 acres
  • Their latest technical report indicated that their initial exploration target may contain between 50M-100M tonnes of copper
  • Majuba Hill plans to begin drilling imminently on their initial targets in Nevada

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The New Money provides background information on early stage companies from publicly available sources. The New Money provides no advice on dealing in securities, is not a financial adviser and does not pretend to be so. This message is meant for information and educational purposes only. The information contained in this email is not to be considered factual or complete. Anybody interested in obtaining financial and other information on companies mentioned is advised to get it direct from the companies, or from their own investment adviser. The New Money does not intend for this information to be used to inform an investment decision. The New Money has been compensated by Majuba Hill Copper for a media campaign, which affects our ability to be unbiased. The Principals of The New Money may buy or sell shares of Majuba Hill Copper without further notice. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities. The New Money and its principals and agents are not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Always do your own research and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy or Sell securities. No representation is being made that any stock trade will or is likely to achieve profits. Comparisons made to other featured companies or past performance is not indicative of future results.