Ferrari, BMW, Tesla and Chinese EV makers increase aluminium wiring adoption amid rising copper costs

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Ferrari and BMW are expanding the use of aluminium wiring in their latest vehicles, reflecting a growing shift by automakers away from copper for electrical systems. The move follows similar steps by Tesla and several Chinese electric vehicle (EV) manufacturers. 

According to JP Morgan, aluminium is expected to replace copper in about 2 per cent of global copper demand this year, with the share likely to increase as copper prices remain high and demand continues to grow from renewable energy projects, data centres and electrification.

The use of aluminium instead of copper has increased steadily over the past two decades. The case for substitution became stronger after copper prices climbed to nearly USD 15,000 per tonne in late January. At present, aluminium costs about USD 3,100 per tonne, or roughly one-quarter the price of copper. Forecasts also indicate that global copper supply is expected to remain below demand for more than the next decade.

Ferrari, which already uses aluminium in its vehicle bodies, engines and chassis, said it introduced aluminium power cables in its 296 hybrid sports car last year. The company has since expanded their use to other models, including the Luce, its first electric vehicle launched last month. According to Ferrari communications executive Dario Esposito, aluminium wiring reduces the total wiring weight by up to 20 per cent. He said the company selected aluminium for its performance rather than its lower cost.

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BMW said it first introduced aluminium conductors in its 1 Series in 2011 and has since expanded their use across hybrid and electric models. The company's latest eDrive electric vehicle technology, launched last year, uses aluminium cables in both high- and low-voltage systems.

Stellantis, the world’s fourth biggest automaker, has also started replacing copper wiring with aluminium, although the company declined to comment.

Chinese automotive supplier JONVER said aluminium wiring products now account for around 30 per cent of its sales, up from 20 per cent in 2023. Norwegian aluminium producer Hydro also reported steady growth in sales of aluminium tubing used as a substitute for copper. Hydro's Chief Financial Officer, Trond Olaf Christophersen, said the company expects aluminium to continue gaining market share as manufacturers replace copper in more applications.

Xavier Mathieu of French cable manufacturer Nexans said copper continues to offer better performance in some applications, but manufacturers begin considering aluminium when copper prices reach around 3.5 times the price of aluminium. Copper is currently trading at more than 4.2 times the price of aluminium.

The wider adoption of aluminium still faces several challenges, including manufacturing requirements, changing designs, trade measures such as US tariffs, and the higher energy needed to produce primary aluminium. Aluminium also has lower electrical conductivity than copper, meaning larger volumes are needed to carry the same amount of electricity.

Despite these challenges, JP Morgan estimates that aluminium could replace around 6 per cent of annual copper demand by 2030, compared with about 2 per cent this year.

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In China, the government encouraged greater use of aluminium instead of copper through a policy paper issued in March 2025. Consultancy Zhuochuang estimates that 25 per cent to 30 per cent of copper components, by metal volume, in the power, automotive and home appliance sectors could be replaced by aluminium by 2030.

Chinese EV manufacturers, including AVATR, XPeng and Xiaomi, have already adopted aluminium wiring, according to Terry Woychowski, President of engineering consultancy Caresoft Global. Tesla and the three Chinese automakers did not comment on the report.

For EV manufacturers, aluminium offers two key advantages. Its lower weight can help increase driving range, while its lower cost is attractive in highly competitive markets such as China. According to Hydro, around 85 per cent of electrical wiring and busbars, which connect an EV battery to the vehicle's systems, are still made from copper, leaving significant room for further aluminium adoption.

The Chinese automotive industry has benchmarked Tesla, which pioneered the use of aluminium wiring with the introduction of the Model Y in 2019 and later expanded its use in the Cybertruck, said Woychowski.