The Impact of the Rapid Growth in Demand for Wires And Cables for New Energy Vehicles

As copper prices rise, the attention to aluminum replacing copper has also increased. Downstream users and cable manufacturers are actively or passively looking for cheaper conductor alternatives to save costs and improve their competitiveness in the face of record high copper prices.

In the field of renewable energy, solar photovoltaic installations drove 70% of cable demand in 2024, becoming the largest source of demand in this field. In recent years, with China's continued overcapacity in this field, the cost of solar installation has dropped sharply, prompting its photovoltaic module exports to reach record levels. How to replace cable conductor materials used in photovoltaics has also become a hot topic of discussion. Compared with copper cables, aluminum cables have gradually become the preferred choice due to their lower cost and lighter weight. Offshore wind power is also the focus of the global cable industry. These high-voltage submarine cables represent the technological forefront of the industry and have promoted cable technology innovation, thus providing manufacturers with the best profits. These large-scale "turnkey" projects also provide cable companies with opportunities to participate in cable installation and service business, becoming an attractive option for many leading companies trying to expand and transform from pure manufacturing to service industries.

In electric and hybrid vehicles, enameled wire is used for vehicle motors and generators. High-voltage wires (above 60 volts) are used for battery connection harnesses, high-voltage auxiliary devices, recovery systems, and AC/DC charging. Low-voltage wires (below 60 volts) are used in both new energy and traditional vehicles, and power and control a variety of systems in the form of automotive wiring harnesses.

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