Ferrari and BMW switch to aluminum wiring as copper hits $15,000 per ton after July 2025 U.S. tariff
AI Market Summary
Automakers including Tesla, Ferrari and BMW are accelerating substitution from copper to aluminum wiring after a 50% U.S. copper import tariff pushed copper near $15,000/ton and widened the copper'to'aluminum price ratio above key switch thresholds. JPMorgan estimates substitution could cut global copper demand ~2% in 2026 and up to 6% by 2030, creating a structural demand headwind for copper despite offsetting growth from electrification and data centers.
Impact level
● Medium
Affected assets
NCCOCOPPER2USD/USDT+0.00%
AI Insight · NCCOCOPPER2USD/USDTAI Insight
▼ Bearish
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Automakers including Tesla, Ferrari, BMW and several Chinese EV makers are accelerating a shift from copper to aluminum wiring as copper prices surge after a 50% U.S. tariff on copper imports in July 2025. With copper near $15,000 per metric ton versus aluminum at about $3,100, the copper-to-aluminum price ratio has moved above 4.2:1, a level Nexans says can trigger substitution. JPMorgan estimates the shift could reduce global copper demand by about 2% in 2026 and potentially 6% by 2030. Aluminum is less conductive but lighter, and suppliers say wiring-harness costs can fall by 30% to 40%.
