Automakers Accelerate Shift to Aluminum Wiring for Lightweighting and Cost Savings

In recent years, the automotive industry has accelerated the trend of "replacing copper with aluminum." Ferrari has already adopted aluminum wiring in its 296 hybrid sports car and its first all-electric model, the Luce, stating it can reduce the total weight of vehicle wiring harnesses by up to 20%. BMW introduced aluminum conductors in its 1 Series as early as 2011 and has since widely implemented aluminum wiring in both high-voltage and low-voltage systems of its eDrive electric technology. Tesla and Chinese new energy vehicle (NEV) makers—including Avatr, XPeng, and Xiaomi—have also begun using aluminum wiring. Stellantis has recently been reported to have started replacing copper wires as well. Aluminum wiring offers advantages over copper in terms of lighter weight and lower cost. Currently, aluminum trades at around $3,100 per ton—roughly one-quarter the price of copper. Although aluminum has lower electrical conductivity than copper (requiring more material to transmit the same amount of electricity), and its production is energy-intensive with higher carbon emissions—and could be affected by U.S. tariffs—its lightweight nature helps extend electric vehicle (EV) range, while its cost advantage aligns well with the intense price competition in China’s EV market. JPMorgan forecasts that aluminum will substitute approximately 2% of global copper demand in 2024, a share that could rise to 6% by 2030. Persistent upward pressure on copper prices—driven by growing demand from green energy and data centers, coupled with supply constraints—is further accelerating the shift toward aluminum across multiple industries.