Automakers Shift to Aluminum Wiring as Copper Prices Rise

Global automakers, including luxury brand Ferrari and Germany's BMW, are expanding the use of lightweight aluminum wiring in their latest vehicle models. The shift marks an industry-wide move away from copper, which has been the primary material for automotive electrical wiring since the advent of the electric battery more than two centuries ago. Driven by rising copper prices, tightening global supplies, and the weight-reduction requirements of electric vehicles (EVs), the transition is expected to affect approximately 2% of global copper demand this year, according to JPMorgan.

Legacy Automakers Expand Aluminum Adoption

The use of aluminum wiring is expanding beyond mass-market EVs into the luxury and high-performance segments. Ferrari, which already uses aluminum extensively in vehicle bodies, engines, and chassis, introduced aluminum power cables in its 296 hybrid sports car last year. The Italian automaker has since expanded the technology to additional models, including the Luce, its first fully electric vehicle, launched last month.

According to Ferrari communications executive Dario Esposito, the transition reduces wiring weight by as much as 20%. "We are not choosing aluminum because it's cheaper; we choose the material that delivers better performance," Esposito said.

Despite Ferrari's focus on performance, market data underscore the significant cost advantage of aluminum. The metal currently trades at approximately US$3,100 per metric ton, roughly one-quarter the price of copper.

BMW has also steadily increased its use of aluminum conductors. The German automaker first introduced aluminum wiring in its 1 Series in 2011 and has gradually expanded its use across its hybrid and electric vehicle lineup. Today, BMW incorporates substantial amounts of aluminum cabling in both the high- and low-voltage systems of its latest eDrive electric vehicle architecture, introduced last year.

A source familiar with the matter said Stellantis, the world's fourth-largest automaker, has also begun replacing copper wiring with aluminum in selected vehicle programs. Stellantis declined to comment. 

Market Dynamics: Price Versus Performance

The financial incentive to replace copper with aluminum has grown as copper prices have surged. In late January, copper prices approached a record US$15,000 per metric ton, driven by structural supply shortages and rising demand from data centers and the clean energy sector. Analysts expect global copper supply to remain insufficient to meet demand for more than a decade.

The shift toward aluminum extends beyond automakers to component suppliers and cable manufacturers. Feng Lu, sales director, Chinese EV parts supplier JONVER, said aluminum wiring products now account for approximately 30% of the company's sales, up from 20% in 2023.

Norwegian aluminum producer Hydro has also reported steady growth in sales of aluminum tubing for heating and air-conditioning systems as a substitute for copper. Hydro Chief Financial Officer Trond Olaf Christophersen said the company expects to continue gaining market share as aluminum replaces copper across multiple industries.

The transition, however, involves engineering and environmental trade-offs. Aluminum is less electrically conductive than copper, requiring larger cables to transmit the same amount of electricity. In addition, aluminum production is more energy-intensive, resulting in higher greenhouse gas emissions, while manufacturers must also contend with US tariffs on aluminum products.

Xavier Mathieu, of France-based Nexans, the world's second-largest cable manufacturer, said copper remains the preferred material for specialized applications requiring maximum electrical performance. However, he noted that manufacturers typically switch to aluminum when copper prices reach about 3.5 times the price of aluminum. Copper currently trades at more than 4.2 times the price of aluminum. 

Structural Shifts Gain Momentum in China

Government policy and competitive market dynamics are further accelerating the transition. In March 2025, China—the world's largest consumer of industrial metals—issued policy guidance encouraging manufacturers to substitute aluminum for copper across several industries.

Consultancy Zhuochuang estimates that by 2030, between 25% and 30% of industrial components currently made from copper, measured by metal volume, could be replaced by aluminum in the power, automotive, and home appliance sectors.

Tesla pioneered the use of aluminum wiring in modern passenger vehicles with the launch of the Model Y in 2019 and later expanded its use in the Cybertruck.

Terry Woychowski, president, engineering consultancy Caresoft Global, which specializes in vehicle teardowns and benchmarking, said Chinese EV manufacturers have closely followed Tesla's approach. He identified AVATR, XPeng, and Xiaomi among the automakers that have successfully adopted aluminum wiring systems.

Tesla and the three Chinese EV manufacturers did not respond to requests for comment.

For EV manufacturers, aluminum's lower weight offers a significant advantage because reducing vehicle mass directly improves driving range. Cost reduction is also increasingly important for automakers operating in China, where an intense price war continues to pressure industry margins.

According to Hydro, significant room for additional substitution remains. The company estimates that approximately 85% of electrical busbars—the components that connect an EV battery pack to the vehicle's electrical systems—are still manufactured from copper.

Looking ahead, JPMorgan projects that aluminum substitution could displace as much as 6% of annual global copper demand by 2030.