A surge in copper prices to an all-time high earlier this year has strengthened the case for switching to aluminium, a cheaper and lighter alternative, across multiple industries.
Both metals are capable of conducting electricity and heat, but aluminium carries a significant price advantage — coming in at roughly one-quarter the cost of copper. The trade-off is efficiency: aluminium only delivers about 61% of copper’s conductivity, which means aluminium conductors need to be approximately 1.6 times larger to do the same job.
Industry insiders say companies typically begin seriously considering the swap when the price ratio between copper and aluminium reaches somewhere between 3.5 and 4.0. That ratio hit a record 4.3 back in January and currently sits around 4.2. Retooling operations comes with costs, so businesses only make the move after careful review.
Weight is another major factor. Copper is about 3.3 times heavier than aluminium, making the lighter metal especially appealing for the auto industry — particularly for electric vehicles, where shedding weight directly translates to longer driving range.
AUTO INDUSTRY
Swapping steel and iron for aluminium in car bodies and engine blocks has long been standard practice, but replacing copper wiring with aluminium is a newer development.
Italian sports car brand Ferrari, which already relies on aluminium for engines and chassis, began using aluminium wiring in its 296 model last year. Combined with reducing cable cross-sections, the change cut total wiring weight by 15% to 20%, the company said.
German automaker BMW told Reuters it first introduced aluminium conductors back in 2011 in its subcompact 1 Series, gradually expanding the substitution in hybrids and battery electric vehicles. Since rolling out its 6th generation eDrive technology last year, BMW now uses aluminium cables extensively in both high and low-voltage systems.
Stellantis, the world’s fourth largest automaker by sales, is also making the switch for wiring, according to an industry source. The company itself declined to comment.
Tesla has been a trailblazer in this space, pioneering the use of massive aluminium casting machines to produce simplified chassis components. The company began using aluminium for wiring in its Model Y in 2019 and has extended the practice to its Cybertruck.
Chinese EV manufacturers AVATR, XPeng, and Xiaomi are among those using aluminium electrical wiring in newer models to reduce costs and weight, according to U.S. consultancy Caresoft, which analyzes vehicle components. The three companies did not respond to requests for comment.
Toyota, the world’s top-selling automaker, said it continually evaluates materials and may adopt aluminium as a copper substitute depending on the specific use, but offered no additional details. Volkswagen, the world’s second largest automaker, said it has no broad plans to replace copper with aluminium for wiring, though it does use aluminium in select applications where it provides clear advantages.
ELECTRICAL CABLES AND GRID INFRASTRUCTURE
Significant aluminium substitution has already taken place in the cable industry, and further global investment in electrical grids of around €10 trillion is expected by 2030, according to Nexans, the world’s second largest cable manufacturer, based in France. The company anticipates strong growth for both metals, with copper holding its place for high-demand applications while aluminium is expected to claim a larger share of grid investment thanks to its cost and availability advantages.
Prysmian, the world’s largest electrical cable maker based in Italy, has seen steady substitution among its customers. The company currently uses aluminium for about 40% of its cable weight — up 3 percentage points over the past five years — with copper making up the remaining 60%. “Grid resilience and data centres are projecting strong growth in both categories,” Prysmian told Reuters.
In Australia, Energy Queensland’s Energex division has been replacing copper with aluminium across its 210,000-kilometer distribution network for many years, swapping out aging equipment as it reaches the end of its useful life. Spokesperson Emma Oliveri said, “Aluminium is more cost-effective, equally as durable, lighter and can span further when stringing power lines.”
HEATING AND AIR CONDITIONING
Japan’s Daikin Industries, the world’s largest air conditioning manufacturer, stated in its 2025 annual report that it was “maximizing cost reductions by switching from copper to aluminium,” though it declined to elaborate further.
U.S.-based Lennox International developed technology to swap out copper coils for aluminium in air conditioners, heat pumps, and evaporator coils. According to its website, the change reduces the risk of corrosion and can cut model weight by up to 50 pounds.
Also in the U.S., Carrier Global has used aluminium coil technology in all of its coastal air conditioning and heat pump models since 2023, citing improved resistance to corrosion.
