The effect of rare earth element Ce on mechanical performance and electrical conductivity of aluminum rod for electrical purpose were studied under industrial production condition. Using optical microscope, SEM, TEM, EDS and X-ray diffractometer, the microstructure and phase composition of aluminum rod were measured and analyzed. The results indicate that the content of rare earth element Ce is between 0.05%～0.16% in the aluminum rod for electrical purpose. Its tensile strength is enhanced to some extent. The research also discovers that the tensile strength is enhanced remarkably with impurity element Si content increases. Because influence of Si is big to the conductivity, the Si content should be controlled continuously strictly in the aluminum for electrical purpose. Adding rare earth element Ce reduces the solid solubility of Si in the aluminum matrix, and the negative effect of Si on the aluminum conductor reduces effectively. So the limit of in Si content in aluminum rod for electrical purpose can be relaxed moderately.