As copper prices soar, industries turn to aluminium to cut costs, weight

Record-high copper prices are accelerating a global shift toward aluminium as automakers, cable manufacturers and air-conditioning companies increasingly adopt the cheaper, lighter metal to reduce costs and improve efficiency, despite copper's superior electrical conductivity.

Copper prices reached a record high earlier this year, pushing the copper-to-aluminium price ratio to 4.3 in January before easing slightly to around 4.2. Industry sources say companies typically begin seriously considering aluminium as a substitute when the ratio rises above 3.5 to 4.0, making the economic case for switching increasingly attractivem, Reuters reports.

Although aluminium conducts only about 61% as well as copper, it costs roughly one-quarter as much and weighs around one-third as much. To deliver the same electrical performance, aluminium conductors must be about 1.6 times larger. Even so, the metal's lower cost and lighter weight have encouraged manufacturers to adopt it across a growing range of industries.

The automotive sector is among the biggest drivers of the trend, particularly in electric vehicles (EVs), where reducing weight can extend driving range.

Italian sports car maker Ferrari, which has long used aluminium in engines and chassis, introduced aluminium wiring in its 296 model last year. Combined with smaller cable cross-sections, the change reduced total wiring weight by 15% to 20%, the company told Reuters.

German automaker BMW said it first introduced aluminium conductors in its 1 Series in 2011 and has since expanded their use across hybrid and battery-electric models. Since launching its sixth-generation eDrive technology last year, the company has incorporated aluminium cables in both high- and low-voltage systems.

Tesla has also expanded the use of aluminium in its vehicles, building on its earlier adoption of giant aluminium casting machines for simplified chassis production before introducing aluminium wiring in the Model Y in 2019 and more recently in the Cybertruck, according to an industry source.

Chinese electric vehicle manufacturers including BYD, Li Auto and Xpeng are also using aluminium electrical wiring in new models to reduce costs and vehicle weight, according to U.S. automotive consultancy Caresoft.

Toyota said it continuously evaluates different materials and could adopt aluminium in place of copper depending on the application, while Volkswagen said it has no immediate plans for widespread replacement but already uses aluminium where it offers clear advantages.

The shift is also gaining momentum in the power transmission sector, where global investment in electricity grids is expected to reach about €10 trillion by 2030.

French cable manufacturer Nexans, the world's second-largest producer, expects strong demand for both metals. While copper will remain the preferred choice for high-performance applications, the company believes aluminium will capture an increasing share of grid investment because of its lower cost and greater availability.

Italian cable manufacturer Prysmian, the world's largest, said aluminium now accounts for around 40% of the metal it uses by weight, up three percentage points over the past five years.

"Grid resilience and data centres are projecting strong growth in both categories," the company told Reuters.

Australia's state-owned electricity distributor Energy Queensland has also been replacing copper with aluminium across its 210,000-kilometre distribution network as ageing infrastructure is renewed.

"Aluminium is more cost-effective, equally as durable, lighter and can span further when stringing power lines," spokesperson Emma Oliveri said.

Manufacturers of heating and cooling equipment are also embracing the transition.

Japan's Daikin, the world's largest air-conditioning manufacturer, said in its 2025 annual report that it was "maximizing cost reductions by switching from copper to aluminium."

Meanwhile, U.S.-based Trane Technologies has developed aluminium coil technology for air conditioners, heat pumps and evaporator coils, reducing corrosion risks while cutting the weight of some models by up to 50 pounds. Since 2023, the company has adopted aluminium coils across all of its coastal air-conditioning and heat pump models to improve corrosion resistance.

By Sabina Mammadli