Ferrari and BMW are rolling out new models featuring lightweight, cost-effective aluminium wiring, accelerating a shift away from copper, the dominant material in electric wiring since the invention of the electric battery two centuries ago.
The decisions follow similar moves by Tesla and Chinese EV makers and reflect a broader industry trend forecast to affect around 2% of global copper demand this year, according to JPMorgan.
Even more copper could be switched to aluminium in the coming years because of a structural rise in copper prices, driven by shortages of the metal and with increased demand from the green-energy sector and data centres.
Companies across several sectors are migrating to aluminium because of far lower prices and comparable performance, according to Reuters interviews with 18 carmakers, cable and air conditioning companies, metals producers and consultants. Ferrari and BMW said they chose aluminium in part because of its lighter weight.
Substitution of aluminium for copper has come in waves over two decades, but record copper prices in late January, peaking close to $15,000 per metric ton, added weight to the case for switching to aluminium. Forecasts for global supply fall short of those for demand for more than the next decade.
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