Buy Air Conditioners Early? Xiaomi and Gree to Shift from Copper to Aluminum

Air conditioners may soon replace copper with aluminum, as most future models are likely to adopt aluminum alloy heat exchangers. This is no joke—it could become reality. On the 11th, Gree Electric Appliances, Inc. of Zhuhai, Xiaomi, and other air conditioner manufacturers participated in the 2025 China Household Appliances Technology Annual Conference, where they released the "Construction Standards for Aluminum Tube-Fin Heat Exchanger Production Lines for Room Air Conditioners."

From basic physics, we know copper has excellent thermal conductivity—401W/(m·K), far surpassing aluminum's 240W/(m·K)—and is much cheaper than silver, which has even higher conductivity. Thus, copper heat exchangers (condensers and evaporators) are currently standard in outdoor AC units.

However, copper prices have soared recently, with the London Metal Exchange hitting a record high of $11,771 per ton. China, which relies on imports for 80% of its copper supply, faces a shortage. The air conditioning industry alone consumed 10.7% (about 1.723 million tons) of China’s total copper demand in 2023. In contrast, while aluminum’s thermal conductivity is lower, it remains competitive among metals, and China accounts for 60% of global aluminum production capacity. This has spurred the industry’s pivot toward aluminum.

The newly announced "Construction Standards for Aluminum Tube-Fin Heat Exchanger Production Lines" is a collaborative effort involving Gree, Midea, Haier, Xiaomi, Hisense, TCL, Aux, Beijing University of Technology, China Household Electric Appliance Research Institute, Changhong, Xi’an Jiaotong University, Sanhua, and Xinrui. Covering major domestic AC manufacturers, the group plans further discussions in January next year.

On the same day, Xiaomi, Haier, Midea, Hisense, TCL, Aux, and Meibo joined the Air Conditioner Aluminum Application Research Working Group’s self-regulation pact, pledging not to disparage competitors over aluminum heat exchangers.

In the near future, aluminum alloy heat exchangers are expected to dominate China’s AC market, potentially lowering prices. However, copper models may persist as premium offerings.