Originally Posted by Áedán
As far as I understand, in automobile applications, the grease is there to protect the connector from the harsh environment it's in. It helps keep salty water and the like out of the connector. Introducing those to a connector will corrode it very quickly!
I disagree with you on that last sentence. Unless there is some kind of reaction between the grease and the metal in the connection, the conductive grease should
help keep the connection from oxidizing by not allowing any moisture penetration to the metal surfaces. It won't help conduct electricity better but it will prevent deterioration due to oxidation from a moisture/oxygen mix.
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