Major home appliance manufacturers including Haier, Midea, Xiaomi, and TCL have jointly pledged to adhere to the "Self-Discipline Convention for Aluminum Reinforcement Application Research in Air Conditioners," committing to promote the "aluminum-for-copper" technological shift in AC heat exchangers. Notably absent from this industry alliance is Gree Electric Appliances,Inc.Of Zhuhai, which has repeatedly stated it has no plans to adopt the aluminum substitution technology.
At the 2025 China Household Appliance Technology Annual Conference, the acceleration of aluminum-for-copper standardization became a focal point. While Haier and Hisense participated in releasing new group standards for aluminum tube-fin heat exchangers, Gree's involvement was limited to ongoing revisions of national standards. The company maintains its stance that copper's superior thermal conductivity, corrosion resistance, and long-term reliability make it irreplaceable without absolute certainty.
Gree's leadership has been vocal about their reservations. Vice President Hu Yusheng emphasized during the 2024 earnings call that performance and reliability concerns prevent any immediate substitution plans. Chairman Dong Mingzhu added that while aluminum substitution is technically possible, quality assurance remains the critical barrier.
Industry experts reveal the technology has been viable for years. A senior R&D executive (anonymous) disclosed that aluminum substitution capability existed two years ago, slowed mainly by market acceptance and varying technical capacities across manufacturers. The shift carries strategic importance - with China importing over 95% of its copper, reducing copper dependence aligns with national supply chain security objectives.
The Chinese government's recent "Aluminum Industry High-Quality Development Implementation Plan (2025-2027)" explicitly promotes aluminum-for-copper applications in AC heat exchangers. Meanwhile, record-high copper prices (surpassing $10,000/ton) intensify cost pressures, making aluminum substitution increasingly economically compelling.
Gree's caution reflects its brand philosophy. As Dong Mingzhu stated, "Consumer trust is paramount - compromising quality damages both users and brand credibility." The company believes higher initial copper costs translate to lower long-term maintenance expenses. However, as material costs soar and industry momentum builds, the question remains how long Gree can maintain its copper-only position before market forces necessitate change.
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