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Global Automakers Turn to Aluminium for Cost and Performance Benefits

Prime Highlights

  • Record copper prices earlier this year have pushed companies across sectors to consider aluminium as a cheaper, lighter substitute.
  • Ferrari, BMW, Tesla and several Chinese EV makers have already adopted aluminium wiring in place of copper.

Key Facts

  • The copper-to-aluminium price ratio hit a record 4.3 in January and currently sits near 4.2, well above the threshold that typically triggers a switch.
  • Aluminium costs about a quarter of copper’s price but offers only 61% of its conductivity, requiring larger conductors.

Background

A sharp rise in copper prices to record highs earlier this year has strengthened the case for switching to aluminium across several industries.

Aluminium costs roughly a quarter of copper’s price, though it carries only 61% of copper’s conductivity, meaning aluminium conductors must run about 1.6 times larger to match performance.

Industry sources say companies typically consider switching once the copper-to-aluminium price ratio climbs to between 3.5 and 4.0. That ratio reached a record 4.3 in January and remains close to 4.2 currently. Even so, firms weigh the decision carefully, since retooling operations involves real costs.

Weight plays a major role too. Copper weighs about 3.3 times more than aluminium, making the lighter metal attractive for automakers, particularly in electric vehicles, where lower weight extends driving range.

Ferrari, which already uses aluminium for its engines and chassis, introduced aluminium wiring in its 296 model last year. Combined with smaller cable cross-sections, the change cut total wiring weight by 15% to 20%, the company said.

BMW first used aluminium conductors in 2011 in its 1 Series and has since expanded the practice across hybrid and electric models. Tesla has used aluminium extensively in its vehicles, including wiring in the Model Y and Cybertruck.

Chinese EV makers AVATR, XPeng and Xiaomi have also turned to aluminium wiring to cut costs and weight, according to consultancy Caresoft. Toyota said it continues evaluating aluminium as a possible substitute depending on the application.