As global copper prices continue to operate at historically high levels, the automobile manufacturing industry is accelerating the pace of material replacement in the supply chain. Major automobile companies are gradually introducing aluminum wiring harnesses into vehicle electrical systems to replace the originally heavily used copper wiring harnesses. BMW, Ferrari, Tesla and many local Chinese car brands have already implemented this replacement route in their mass-produced models or subsequent product planning. The reasons for choosing aluminum wire harnesses cover multiple core dimensions such as cost control, body weight reduction, and supply stability.
The rise in copper prices in recent years has been astonishing. Public trading data from the London Metal Exchange shows that copper prices have risen from the earlier regular range of about 7,313 euros per ton to a historical peak of 13,160 euros.
The current spot quotation is stable at 11,663 euros per ton, which is approximately RMB 90,000. In comparison, the spot price of aluminum during the same period was only 2,719 euros per ton, which is about 21,000 yuan. The price difference between the two is very wide..
In the application scenarios of automotive electrical systems such as wire harnesses, aluminum not only has a lower purchase price, but the comprehensive implementation cost of the entire aluminum wire harness is usually about 20% lower than that of copper wire harnesses, and the cost reduction effect is very impressive.
In addition, the overall weight of the aluminum wiring harness is also lighter. This lightweight advantage has very high practical significance for sports cars that pursue ultimate control performance, as well as pure electric and hybrid models that want to maximize their endurance performance.
A common view in the industry is that copper’s conductive performance as a wire harness material still retains its inherent advantages. In some specific scenarios that require extremely high conductive efficiency and heat dissipation, copper wire is still an irreplaceable choice.
However, if the price gap between copper and aluminum continues to expand significantly in the future, more car manufacturers will actively join the ranks of material substitution, and the industry penetration rate of aluminum wiring harnesses will usher in a rapid increase.
In response to this large-scale material replacement move, the public statements of different car companies are not consistent.
For example, supercar brand Ferrari has made it clear that the choice of aluminum material is not simply because of lower cost, but based on the performance requirements of the vehicle, matching the most appropriate materials for different functional modules.
Many other car companies have been much more straightforward and sincere in their statements, directly admitting that the core purpose of this technology route switch is to effectively offset the cost pressure caused by the continued rise in upstream copper prices.
