Ferrari and BMW Accelerate Shift to Aluminum Wiring, Raising Attention on Copper Substitution

Published: Jul 1, 2026 09:34

Save

Ferrari and BMW are introducing aluminum wiring into new vehicle models, joining Tesla and several Chinese EV manufacturers in replacing part of their copper wiring with aluminum. Aluminum costs roughly one-quarter as much as copper and offers significant weight savings, helping improve vehicle efficiency and driving range. JPMorgan noted that aluminum substitution is accelerating across multiple sectors—including automotive, power cables and home appliances—and estimated that the broader substitution trend could affect around 2% of global copper demand in 2026. Under a scenario where copper supply remains tight and prices stay structurally elevated, the bank projects that as much as 6% of annual copper demand could be replaced by aluminum by 2030. However, due to copper's superior electrical conductivity and performance in high-specification applications, it is expected to remain the dominant conductor material in the near term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

35 mins ago

COMEX Copper Surges, LME Declines; Spreads Widen Amid Uncertainty Over Section 232 Tariff

[SMM Copper Market Flash] After SHFE copper closed today, COMEX copper prices surged, while LME’s decline widened to over 1.7%; currently, the COMEX2607-LME spread has widened to over $300/mt, and the COMEX2610-LME spread to over $500/mt. It is reported that there is still no clear news on the Section 232 tariff, and the LC spread has been relatively active.

35 mins ago

1 hour ago

Data: SHFE, DCE market movement (Jul 01)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 01 Jul , 2026

1 hour ago

Latest Data from the General Administration of Customs

[Latest Data from the General Administration of Customs] In May 2026, China imported 191,000 mt in physical content of copper scrap and shredded copper scrap. Of which, 123,100 mt were declared at Ningbo Customs, ranking first and accounting for 64.44%; 18,800 mt were declared at Shenzhen Customs, ranking second and accounting for 9.82%. (HS code: 74040000)

1 hour ago