Record copper prices are strengthening the case for aluminium across autos, power cables and air conditioning, as companies weigh lower cost and lighter weight against lower conductivity and retooling costs.
Ferrari and BMW are rolling out more vehicle models with aluminium wiring, adding momentum to a broader shift away from copper as manufacturers across autos, electrical grids and air conditioning weigh lower costs and lighter weight against lower conductivity and switching costs. Copper prices surged to a record earlier this year, pushing the copper-to-aluminium price ratio to a January high of 4.3 and leaving it at about 4.2 currently, a level industry sources say typically supports substitution. Aluminium is about a quarter of the price of copper but only 61% as conductive, meaning conductors need to be about 1.6 times larger. Companies also face retooling costs, so adoption tends to follow detailed analysis rather than immediate price moves. In autos, Ferrari said it started using aluminium wiring on its 296 model last year, helping reduce total wiring weight by 15% to 20% alongside smaller cable cross-sections. BMW said it first used aluminium conductors in 2011 in its 1 Series and has steadily expanded their use in hybrids and battery electric vehicles, with many aluminium cables now used in both high- and low-voltage systems in its sixth-generation eDrive technology. Reuters also reported that Stellantis is swapping the metals for wiring, while Tesla, AVATR, XPeng and Xiaomi are among EV makers already using aluminium electrical wiring. Toyota said it may adopt aluminium depending on the application, while Volkswagen said it has no concrete plans for broad replacement. The substitution trend extends beyond vehicles. Nexans said roughly 10 trillion euros of global grid investment is expected by 2030 and that aluminium should capture a growing share because of its cost advantage and availability, even as copper remains the benchmark for demanding applications. Prysmian said aluminium now accounts for about 40% of the metal it uses by weight, up 3 percentage points over five years. In heating and cooling, Daikin said it is maximizing cost reductions by switching from copper to aluminium, while Lennox and Carrier have highlighted aluminium coils for lower weight and better corrosion resistance.