EV Power Surge: Aluminum Busbars & EU Regulations Fuel Market Growth

By Kenneth Walker

As the automotive industry accelerates its transition to electric vehicles (EVs), a critical – and often overlooked – component is gaining prominence: the busbar. These conductive strips distribute power within EVs, and a rapidly expanding market is emerging, fueled by stringent European Union (EU) regulations and a growing preference for lightweight materials like aluminum. New analysis reveals a dynamic landscape, with challenges and opportunities for manufacturers as demand surges.

The Regulatory Engine of Growth

The EU’s ambitious climate goals are the primary driver behind the EV busbar market’s expansion. The bloc’s commitment to achieving climate neutrality by 2050, with intermediate targets of 55% emission reductions by 2030, has created a regulatory landscape that effectively mandates the transition to zero-emission vehicles. Crucially, from 2035 onwards, the EU fleet-wide CO2 emission target for both cars and vans is 0 g CO2/km, forcing automakers to prioritize electric mobility.

“The regulations are undeniably the biggest catalyst,” explains one industry analyst. “Carmakers have no choice but to invest heavily in EVs to meet these targets, and that translates directly into demand for components like busbars.”

This regulatory push isn't without its complexities. The European Automobile Manufacturers’ Association (ACEA) has voiced concerns that the current pace of EV adoption may not be sufficient to meet the 2030 and 2035 targets. They advocate for a more realistic approach, emphasizing the need for stronger infrastructure investments, grid upgrades, and sustained consumer incentives. Despite these concerns, the overall trajectory is clear: the demand for EV busbars is set to continue its upward climb.

The Rise of Aluminum: Weight and Cost Savings

While copper remains a dominant material in busbar manufacturing, aluminum is rapidly gaining traction, driven by the industry’s relentless pursuit of weight reduction and cost optimization. Aluminum busbars offer up to a 60% weight reduction compared to their copper counterparts, enhancing vehicle efficiency and range – key selling points for EVs.

“Weight is a critical factor in EV design,” notes a materials scientist. “Every kilogram saved translates into improved range and performance. Aluminum provides a compelling solution, especially for mass-market vehicles.”

The aluminum-based EV busbar industry is projected to witness significant growth until 2034, expanding across the European market. However, copper still held a 70% revenue share in 2024, and remains the preferred choice for high-performance EVs and fast-charging applications. The emergence of hybrid busbars—combining the benefits of both copper and aluminum—is also gaining momentum, offering a versatile solution for advanced EV technologies.

France and Germany Lead the Charge

Europe is witnessing uneven growth across different markets. While the entire region is experiencing an EV surge, France and Germany are emerging as key players in the busbar market. France’s government-backed electrification programs and growing EV sales are driving demand. Investment in renewable energy and urban infrastructure, supported by the Multiannual Energy Program (PPE), further boosts the market.

However, Germany currently dominates the European EV busbar market, accounting for 18% of revenue in 2024, thanks to its strong automotive manufacturing base and ambitious climate targets.

Key Players and Innovation

The EV busbar market is characterized by a mix of established component suppliers and emerging players. Companies like Mersen are at the forefront, forging strategic partnerships with automotive OEMs and battery manufacturers to develop integrated EV solutions. The collaboration between Mersen and the Automotive Cells Company (ACC) – a joint venture focused on battery production – exemplifies this trend.

The industry is also witnessing significant innovation in materials and design. Manufacturers are exploring new alloys, coatings, and manufacturing processes to enhance busbar performance, durability, and cost-effectiveness.

Challenges and Future Outlook

Despite the positive outlook, the EV busbar market faces several challenges. Supply chain disruptions, raw material price volatility, and the need for skilled labor pose significant hurdles. Moreover, ensuring the sustainability of aluminum production and addressing concerns about its environmental impact are critical.

“The industry needs to focus on building resilient supply chains, investing in sustainable manufacturing processes, and fostering innovation to overcome these challenges,” explains a supply chain expert. “Collaboration and transparency are key.”

The future of the EV busbar market is bright, but navigating these challenges will be crucial for sustained growth. As the automotive industry continues its electric revolution, busbars will remain a vital – and increasingly sophisticated – component, powering the future of mobility. The continued refinement of materials, designs, and manufacturing processes, coupled with supportive regulations and strategic partnerships, will pave the way for a more sustainable and efficient electric vehicle ecosystem.