What is the value of the deal mentioned in the report?

The deal is worth $4.1 billion for aluminum wiring supply.

Is this shift limited to Ferrari and Tesla?

No, several other automakers are also considering switching to aluminum.

$4.1B Deal Shows Ferrari and Tesla Switching from Copper to Aluminum

Rising copper prices (up 50%) are pushing Ferrari and Tesla to substitute aluminum for copper in EV wiring. A $4.1 billion deal secures aluminum cable supply, reflecting a major industry trend.

July 5, 2026

1 min read

Source: Benzinga

Key Numbers

deal value

4.1B

copper price increase

50%

A $4.1 billion deal underscores a major shift in the automotive industry: Ferrari and Tesla are replacing copper with aluminum for electric vehicle wiring, according to a Benzinga report. The move comes as copper prices have surged 50% over the past year, prompting automakers to seek cheaper alternatives.

Details

Electric vehicles require substantial copper for wiring, but soaring prices are driving substitution. Aluminum, lighter and easier to work with, has emerged as the preferred alternative. The deal involves a cable manufacturer supplying high-quality aluminum wiring to both Ferrari and Tesla.

Context

Copper is a critical commodity for automakers, but price volatility encourages innovation. Ferrari and Tesla are not alone; several other car manufacturers are exploring aluminum to cut costs and improve weight efficiency.

What This Means for Investors

This shift could dampen copper demand while boosting aluminum producers. Investors in materials sectors should monitor these trends closely.

Frequently Asked Questions

Due to a 50% surge in copper prices, aluminum offers a cheaper and lighter alternative for EV wiring.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.