Ferrari and BMW are among a growing set of automakers adopting aluminium for vehicle electrical wiring, a step industry participants say is accelerating a long-running migration away from copper - the material long dominant in electrical conductors.
Ferrari reported that it began installing aluminium power cables in its 296 hybrid sports car last year and has since rolled the material into additional models including the Luce, its first electric vehicle launched last month. The company said aluminium contributes to lower wiring weight and that the material was chosen for performance reasons, though it is substantially cheaper than copper at present.
BMW traces its earliest use of aluminium conductors to 2011 in its subcompact 1 series and has broadened substitution over time, particularly in hybrids and electric vehicles. The automaker now incorporates substantial quantities of aluminium in both high- and low-voltage systems in the eDrive EV technology it introduced last year. Industry sources say Stellantis has also started replacing copper wiring with aluminium on some vehicles; the company declined to comment.
Drivers of substitution
Several factors are converging to push manufacturers toward aluminium. The metal is currently priced at roughly $3,100 per metric ton - about a quarter of copper’s level - making cost savings a clear incentive. For electric vehicle makers, reducing wiring weight is additionally attractive because it can extend driving range, a key performance metric for battery-powered vehicles.
Record copper prices earlier this year intensified the economics of substitution. Copper nearly reached $15,000 per metric ton in late January, a high point that added urgency to alternatives. Forecasts cited in industry commentary indicate global copper supply may fall short of demand for more than the next decade, a dynamic that supports higher structural copper prices and could spur further substitution.
Sector responses and supplier trends
Equipment makers and suppliers report growing demand for aluminium wiring products. Chinese parts supplier JONVER said sales of aluminium wiring rose to about 30% of its sales this year from roughly 20% in 2023. Hydro, the Norwegian aluminium producer, reported steady growth in sales of aluminium tubing used as a copper substitute in heating and air-conditioning systems and expects to gain share as substitution progresses.
Manufacturers and cable makers acknowledge limits. Nexans, the second-largest cable producer globally, noted that copper still performs better for certain applications and will continue to be purchased at higher prices for those uses. The company’s comment aligns with industry observations that aluminium requires a larger cross-sectional amount to carry the same electrical current as copper, and that producing aluminium consumes substantial energy with higher greenhouse gas emissions in many cases.
Market-size estimates and policy signals
JPMorgan analysts estimated that aluminium substitution could trim roughly 2% off global copper demand this year and outlined a scenario in which about 6% of annual copper demand might be replaced by aluminium by 2030. Consultancy forecasts cited in industry commentary suggest the potential for even greater substitution in targeted sectors: Zhuochuang analysts estimate that 25% to 30% of components currently manufactured from copper - by metal volume - could move to aluminium in the power, automotive and home-appliance sectors by 2030.
Policy appears to be reinforcing the trend in China, the world’s largest metals consumer. A government policy paper dated March 2025 encouraged companies to adopt aluminium in place of copper, and several Chinese electric vehicle makers have acted on that guidance. Engineering consultancy Caresoft Global, which dismantles and inspects vehicles, cited companies that have switched to aluminium wiring including AVATR, XPeng and Xiaomi. Tesla is also credited within the industry for pioneering aluminium wiring use when it introduced the Model Y in 2019 and more recently with its Cybertruck.
Practical and commercial trade-offs
Decision-making on substitution is multifaceted. Buyers must weigh tariffs, the increased volume of aluminium required to achieve equivalent conductivity, and the environmental footprint associated with aluminium production. Some buyers begin to substitute only when copper prices reach a certain premium relative to aluminium; one industry source said that threshold is around 3.5 times, while current market prices exceed a ratio of 4.2 times.
Despite these caveats, the opportunity for aluminium to expand its share in automotive electrical systems is significant. Hydro estimates that about 85% of electrical wiring busbars that connect EV batteries to systems remain copper, indicating room for additional substitution in vehicle architectures.
Implications for markets and manufacturers
The broad movement toward aluminium wiring is being observed across a range of companies and product categories, from automakers to heating-and-air suppliers and cable manufacturers. Cost considerations, vehicle weight and policy incentives have combined to make aluminium an increasingly attractive alternative to copper in select applications. Suppliers of aluminium components are reporting higher sales, and manufacturers that have introduced aluminium conductors say the material supports their performance and weight objectives.
At the same time, technical limitations, environmental questions around aluminium production, and trade-related frictions complicate large-scale substitution. How quickly and extensively aluminium displaces copper will depend on those trade-offs, future price dynamics for both metals, and regulatory or policy developments that could accelerate or restrain the shift.