London, Jan. 12 (Xinhua) – Global copper prices have continued their sharp upward trend in 2026, with London Metal Exchange (LME) copper futures soaring above $13,300 per tonne, a record high, while Shanghai copper futures have also climbed to the 100,000 yuan per tonne mark. This sustained rally has exerted significant pressure on the motor manufacturing industry, which relies heavily on copper as a core raw material.
Copper accounts for 30% to 40% of the total cost of low-end industrial motors. As copper prices double, the production cost of a single motor has risen by 15% to 20%, far exceeding the 5% to 8% profit margin of most small and medium-sized motor enterprises. Many small manufacturers in Shandong and Dongguan have suspended production or even closed down due to inability to absorb the cost pressure, as downstream customers are unwilling to accept immediate price hikes.
The impact is particularly pronounced in the new energy vehicle (NEV) motor sector. A pure electric vehicle uses about 59kg of copper, twice that of a traditional fuel vehicle. Industry analysts note that NEV motor manufacturers are facing steeper cost curves, though the cost pressure has not yet fully transmitted to terminal prices. Meanwhile, the industry is witnessing a reshuffle, with high-end enterprises gaining an edge through technological innovation.
To mitigate the impact, enterprises are taking multiple measures: optimizing winding processes to reduce copper waste, developing flat-wire motors to improve copper utilization, and exploring aluminum as a substitute material. Major manufacturers have also launched metal hedging plans and locked in long-term copper supply contracts. Industry insiders predict that the copper price rally will continue in 2026, forcing the motor industry to accelerate upgrading towards high-efficiency and low-copper-consumption products.
Post time: Jan-14-2026