Some of the world’s most recognizable automakers are turning away from copper wiring in favor of aluminium, a move that could reshape the global metals market for years to come.
Ferrari and BMW have both rolled out new vehicle models featuring aluminium electrical wiring, joining Tesla and a growing number of Chinese electric vehicle manufacturers who have already made the switch. According to JPMorgan, the trend is expected to impact roughly 2% of worldwide copper demand this year alone.
Copper has been the go-to material for electrical wiring ever since the electric battery was invented two centuries ago. But with copper prices hitting record highs near $15,000 per metric ton in late January, and forecasts showing global supply falling short of demand for more than the next decade, many companies are rethinking their materials choices.
Ferrari, which already relies on aluminium for its car bodies, engines, and chassis, told Reuters it began using the metal for power cables in its 296 hybrid sports car last year. The company has since expanded aluminium wiring to additional models, including the Luce — its first-ever electric vehicle, launched last month. The change reduces total wiring weight by as much as 20%.
Ferrari communications executive Dario Esposito pushed back on the idea that cost was the primary motivation. “We are not choosing aluminium because it’s cheaper, we choose the material that has better performance,” he said. Still, aluminium currently runs about $3,100 per ton — roughly one-quarter the price of copper.
Germany’s BMW said it first incorporated aluminium conductors back in 2011 in its subcompact 1 series and has gradually expanded their use in hybrid and electric vehicles. The automaker now uses a large number of aluminium cables in both high- and low-voltage systems within its latest eDrive electric vehicle technology, which launched last year.
Stellantis, the world’s fourth-largest automaker, has also recently begun replacing copper wiring with aluminium, according to an industry source with knowledge of the matter. Stellantis declined to offer any comment.
The transition isn’t limited to automakers. Norwegian aluminium producer Hydro reported steady growth in sales of aluminium heating-and-air tubing as a substitute for copper in recent years. Hydro’s CFO Trond Olaf Christophersen said the company anticipates gaining market share as aluminium increasingly takes over from copper in that sector.
Chinese EV parts supplier JONVER has also seen demand surge. Sales director Feng Lu said aluminium wiring products now account for about 30% of the company’s sales this year, up from around 20% in 2023.
Xavier Mathieu, a representative at France-based Nexans — the world’s second-largest cable manufacturer — noted that manufacturers will continue buying copper at elevated prices when performance demands it, but tend to shift toward aluminium when copper prices climb to roughly 3.5 times higher. Copper currently sits at more than 4.2 times the price of aluminium.
The switch does come with complications. U.S. tariffs, the large amounts of energy required to produce aluminium — which translates into higher greenhouse gas emissions — and the fact that aluminium is less efficient as a conductor all factor into companies’ decisions. More aluminium is needed to carry the same electrical load as copper.
China has been especially aggressive in pushing the transition. The Chinese government encouraged companies to make the switch in a policy paper issued in March 2025, and many have responded. Chinese EV manufacturers AVATR, XPeng, and Xiaomi have all moved to aluminium wiring, according to Terry Woychowski, president of engineering consultancy Caresoft Global, which analyzes vehicle components. Woychowski noted that the Chinese auto industry has largely looked to Tesla as a model, as the company was a pioneer in using aluminium wiring when it introduced its Model Y in 2019 and later in its Cybertruck.
Analysts at consultancy Zhuochuang forecast that between 25% and 30% of components currently made from copper — by metal volume — could be switched to aluminium across the power, automotive, and home-appliance sectors by 2030. For now, about 85% of the electrical wiring busbars connecting an EV’s battery to its systems are still made from copper, according to Hydro, leaving considerable room for aluminium to expand its foothold.
