EV boom could trigger a new commodity supercycle: Why copper, lithium, graphite matter

The global shift towards electric vehicles (EVs) is not just transforming the automobile industry; it is also creating a surge in demand for critical minerals. JPMorgan data shows that EVs require significantly more mineral content than conventional cars, potentially reshaping commodity markets and investment opportunities.

Far more minerals

According to Advait Arora, Investor & Founder, WealthEnrich, a modern EV requires around 200 kg of minerals to be built, compared with roughly 35 kg for a conventional petrol or diesel car.

“Do you know that the latest EV cars need 200 kg of minerals just to get built?” Arora said. He estimates that the requirement includes around 60 kg of copper, 40 kg of graphite, 30 kg of lithium, 25 kg of nickel and 15 kg of manganese.

While the exact mineral mix varies by vehicle, battery chemistry and technology, the broader trend is clear: EVs require substantially more critical minerals than conventional vehicles.

Global EV sales

JPMorgan data shows the dramatic expansion of the global EV market. Global EV sales reached around 18 million vehicles in 2024, with EVs accounting for 27% of all car sales, compared with a negligible share around a decade earlier.

China has emerged as the dominant market, selling around 10-11 million EVs annually, according to Arora, giving it roughly a 60% share. Europe accounts for around 4-5 million units, or about 25%, while the US market is around 2 million, representing roughly 10-12%.

India remains a much smaller player, with around half a million EVs and a 2-3% share of the market. However, domestic momentum is strengthening rapidly.

Electric car sales in India surged 82% year-on-year to 31,788 units in July 2026, from 17,509 units a year earlier. EVs accounted for 7.8% of new car sales, up from 5% in July 2025. Higher fuel prices amid the US-Iran war have pushed consumers towards more affordable transportation, supporting EV demand.

Automakers are also witnessing strong demand. Maruti Suzuki said e-Vitara bookings were more than double its monthly production capacity, while Tata Motors said demand continued to outstrip supply. Tata led India's EV market with a 43% share in July, followed by Mahindra & Mahindra at 24%, JSW MG Motor at 18% and Maruti Suzuki at 5%.

Industry estimates suggest annual electric car sales in India could approach 1 million by 2030, compared with 176,817 units in 2025.

Where the real opportunity lies

Arora argues that investors should look beyond EV manufacturers to companies supplying the raw materials and components required to build these vehicles.

“Real wealth flows from Chile copper mines, China graphite plants, Australia lithium and Asia battery factories,” he said.

The growing EV fleet is translating into additional demand for copper, graphite, lithium, nickel and manganese. At 18 million EVs, the additional mineral requirement could run into millions of tonnes annually, creating opportunities across mining, processing and battery manufacturing.

China has moved early

China has aggressively secured this ecosystem by investing in overseas mining assets, expanding graphite processing capacity and building a dominant position in battery manufacturing. This has given Chinese companies significant influence across several stages of the EV supply chain.

India, meanwhile, remains relatively dependent on global supply chains for several critical minerals. Developing domestic mining, processing and battery manufacturing capabilities will therefore be crucial as EV adoption accelerates.

For commodity investors, the EV transition could extend beyon