Explained: Why aluminium is emerging as manufacturers' preferred alternative to copper

Aluminium is gaining traction as a substitute for copper in automotive and industrial wiring as copper prices hit record highs near $15,000 per tonne, with the copper-to-aluminium price ratio now above 4.2. Ferrari has reduced wiring weight by 15-20% by adopting aluminium in models including the 296 Hybrid and Luce EV, while BMW is also expanding aluminium usage. JPMorgan estimates substitution could affect around 2% of global copper demand this year, potentially rising to 6% by 2030, as supply constraints from ESG pressures, flatlined discoveries and Middle East disruptions compound structurally rising demand from electrification and AI.