Copper and aluminium have long competed across a wide range of industrial applications. In many sector, these two metals can be used alternatively because of their few common traits like durability, conductivity, ductility, and corrosion-resistance. But at this moment, there is one factor that is tipping the balance in favour of aluminium – price it is. And the gap is not some hundreds of dollars but thousands. Taking the instance of the current market, aluminium is trading nearly USD 8,700 per tonne below copper. This price advantage is the reason for sectors like electric vehicles, renewable energy, and AI data centres to switch from copper to aluminium wherever technical standards allow.

Price gap is increasing aluminium’s appeal

This shift is taking placing even though aluminium prices are growing rapidly and relentlessly in recent times. So far in 2026, aluminium price has gained 14 per cent, outpacing copper’s 10 per cent rise. But the absolute price difference remains vast. In 2025, copper price climbed 39 per cent over the year, from USD 8,977.57 per tonne to above USD 13,800 per tonne. In contrast, aluminium price increased by about 19 per cent from the mid-USD 2,500s per tonne to USD 2,968 per tonne. As of now, aluminium stands at USD 3,385 per tonne and copper at USD 12,808 per tonne. So, even when aluminium rallies harder in percentage terms, copper remains in an entirely different price bracket.

Due to this price difference, the International Energy Agency has also suggested that if the electricity industry has to reduce its raw material costs, then it should move to aluminium as a viable alternative. According to the IEA, annual copper demand from electricity grids are likely to grow from 5 million tonnes in 2020 to 7.5 million tonnes in 2040 under the STEPS scenario, and to nearly 10 million tonnes under the SDS. Aluminium demand is also projected to increase at a similar annual pace, from 9 million tonnes in 2020 to 12.8 million tonnes in STEPS and 16 million tonnes in SDS by 2040.