Why are automakers like Ferrari, BMW, and Tesla switching from copper to aluminium wiring?

Automakers are switching to aluminium wiring primarily because aluminium is about a quarter of the price of copper and roughly 3.3 times lighter—key advantages for cost reduction and weight savings in EVs, where lighter wiring extends driving range; although aluminium has only 61% of copper’s electrical conductivity (requiring conductors ~1.6 times larger), companies proceed with substitution when the copper-to-aluminium price ratio reaches 3.5–4.0 or higher—a threshold recently exceeded (peaking at 4.3 in January, now at ~4.2)—and after careful analysis of retooling costs and technical feasibility.

What is the main economic trigger and technical constraint behind the copper-to-aluminium substitution trend?

The main economic trigger is the record-high copper-to-aluminium price ratio—reaching 4.3 in January and remaining at ~4.2—which makes aluminium significantly cheaper despite its lower conductivity; the key technical constraint is that aluminium has only 61% of copper’s electrical conductivity, necessitating conductors about 1.6 times larger in cross-section to achieve equivalent performance, meaning substitution requires engineering adjustments and is only pursued after thorough cost-benefit analysis due to retooling expenses.

Why Companies Are Swapping Copper for Aluminium

Jun 29, 2026

Rising copper prices drive automotive and electrical firms like Tesla and BMW to substitute cheaper, lighter aluminium for wiring and components to reduce costs and weight.

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Why Companies Are Swapping Copper for Aluminium

Why Companies Are Swapping Copper for Aluminium

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