Carmakers Replace Copper Wiring With Aluminum as Copper Prices Stay Near Record Highs

Automakers are accelerating a shift away from copper wiring in favor of aluminum, a cheaper and lighter alternative, as copper prices remain close to record levels through mid-2026. A Reuters analysis published on June 30, 2026 confirmed that Ferrari and BMW have joined Tesla and Chinese manufacturers in expanding the use of aluminum conductors across new vehicle lines.

The trigger is structural. Copper peaked near 15,000 dollars per metric ton in late January 2026 and has stayed elevated, remaining volatile through the second quarter as it traded between roughly 12,400 and 14,200 dollars per ton. Aluminum, by contrast, costs about 3,100 dollars per ton, leaving the copper-to-aluminum price ratio above 4.2. Industry sources say substitution becomes attractive once copper trades at about 3.5 times the price of aluminum, a threshold now clearly passed. Forecasts point to a global copper supply deficit for more than a decade, reinforced by demand from data centers, power grids and green energy.

Tesla pioneered the approach, wiring its Model Y with aluminum in 2019 and later its Cybertruck. Ferrari began using aluminum power cables on its 296 hybrid in 2023 and extended the material to the Luce, its first fully electric model launched in May 2026, cutting total wiring weight by up to 20 percent. BMW first adopted aluminum conductors in 2011 and now relies on them across its latest eDrive systems. Stellantis has quietly started switching as well, while Chinese makers AVATR, XPeng and Xiaomi have adopted aluminum wiring to trim weight and protect thin margins in a fierce price war.

China is central to the movement. A March 2025 government policy paper encouraged domestic firms to reduce copper reliance, and analysts at Zhuochuang expect 25 to 30 percent of copper components in power, automotive and appliance applications to switch to aluminum by 2030. JPMorgan estimates aluminum substitution will displace about 2 percent of global copper demand in 2026, potentially reaching 6 percent by 2030.

The switch is not total. Aluminum conducts only about 61 percent as well as copper, so cables must be sized around 1.6 times larger to carry the same current, and junctions need special treatment to prevent galvanic corrosion. Roughly 85 percent of battery-pack busbars remain copper. Two factors add uncertainty: pending US tariffs on copper imports and the high energy cost of aluminum production. Even so, the structural pressure favoring substitution looks durable.

Copper holds a clear edge at the connection points, meaning wherever a cable joins a connector, a terminal, a housing or another cable. Aluminum is more fragile in this respect for several concrete reasons.

Galvanic corrosion is the first one. When aluminum touches another metal in the presence of moisture, it forms a small electrochemical cell that eats away at the aluminum where the two meet, and that corrosion slowly raises the electrical resistance of the joint. Copper stays far more stable, which is why aluminum junctions require special coatings and anti-oxidation pastes.

Creep is the second issue. Aluminum slowly deforms under constant pressure, such as the clamping force of a lug or a screw, so the contact loosens over time, resistance climbs, the joint heats up and can create a hot spot that melts insulation or triggers an arc. Copper keeps its clamping force much better.

Vibration and fatigue add a third weakness, since aluminum is more brittle than copper against the repeated vibration of a moving vehicle and a poorly designed joint can crack or work loose faster. In practice a copper-to-copper joint needs few precautions and ages well, while an aluminum joint demands specific connectors, surface treatments and controlled torque to stay reliable over time. This is one of the main reasons copper still dominates critical areas such as battery-pack busbars, which remain about 85 percent copper.