Freeport-McMoRan

The automotive industry is among the world’s biggest copper consumers. Copper is used in a variety of auto parts such as radiators, motors, brakes, and bearings.

According to the International Copper Association, 23 kilograms (or kg) of copper is used in an internal combustion engine vehicle. However, a hybrid electric vehicle uses 40 kg of copper. Copper content is even higher in plug-in hybrid electric vehicles and battery electric vehicles, at 60 kg and 83 kg, respectively.

How Freeport-McMoRan Benefits from Electric and Hybrid Vehicles

Electric cars

We’ve seen a big push for electric vehicles on a global scale, and several governments are committing themselves to fully electric fleets. The growing electrification of cars is expected to support copper demand. Not only is copper content higher in electric vehicles, but these vehicles would also require an expanded charging infrastructure as the electric car fleet grows globally.

Charging networks would also boost copper demand. Higher copper demand is positive for miners like Freeport-McMoRan (FCX), Southern Copper (SCCO), and Glencore International (GLNCY).

Tesla

While electric vehicles have been around for a long time, the concept gained popularity with Tesla (TSLA) vehicles. In addition to its premium vehicles, the company is now offering its mass-market Model 3, which analysts see as its key growth driver.

The growing demand for renewable energy generation is expected to support global copper demand. Although the United States (SPY) (SPX-INDEX) has withdrawn from the Paris climate accord, other nations are committed to the deal.

Investments in renewable energy bode well for global copper demand, as the copper intensity in renewable energy is higher than in non-renewable energy.

While copper’s long-term outlook looks bullish, some analysts are concerned about its short-term outlook. In the next article, we’ll look at the short-term challenges facing copper.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

172.31.59.107