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Why companies are swapping copper for aluminium
Why companies are swapping copper for aluminium
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The spike in copper prices to a record high earlier this year has added weight to arguments for switching from copper to cheaper and lighter aluminium in a range of sectors.Here are the factors involved in the decision and some companies that have moved to substitute aluminium for copper.WHY DO COMPANIES DECIDE TO SUBSTITUTE?Both metals conduct electricity and heat, and as copper prices rise, aluminium becomes more attractive as a substitute.Aluminium is about a quarter of the price of copper, but it is not as efficient, with only 61% of the red metal's conductivity. That means aluminium conductors have to be about 1.6 times larger.Companies look at swapping the two metals in a range of applications when the copper-to-aluminium price ratio moves to between 3.5 to 4.0 or above, industry sources say. It hit a record of 4.3 in January and is currently at about 4.2.Companies face costs in retooling operations, so they only make the switch after considered analysis.Copper is about 3.3 times heavier than aluminium, making the latter desirable for autos and especially EVs, where cutting weight results in longer driving ranges.AUTOSUsing aluminium instead of steel and iron in car bodies and engine blocks to cut weight is standard in many models, but replacing copper wiring with aluminium is a relatively new area.Ferrari MIL:RACEThe Italian sports car maker, which has already used aluminium for engines and chassis, started using aluminium wiring on its 296 model last year.Together with reducing cross-sections of cables, this has resulted in saving 15% to 20% of total wiring weight, the company told Reuters.BMW XETR:BMWGermany's BMW told Reuters it first used aluminium conductors in 2011 in its subcompact 1 Series, and progressively expanded the substitution for copper electrical components in hybrids and BEVs.Since last year's launch of 6th generation eDrive technology, BMW is now using a large number of aluminium cables in both high and low-voltage systems, it added.Stellantis MIL:STLAMThe world's fourth largest automaker by car sales is swapping the two metals for wiring, an industry source told Reuters. The company declined to comment.Tesla NASDAQ:TSLAThe automaker has been a pioneer in using aluminium in its EVs, spearheading the use of giant aluminium casting machines to build simpler chassis parts even before it started using the metal for wiring in its Mode...