Rumored NPI production cuts at one of Indonesia's largest nickel hubs reveal a deeper structural shift — and a stark gap in per-megawatt-hour returns between aluminum and nickel.

On May 8th, at the construction site of the Green Low-Carbon Alloy Aluminum Liquid Smelting Industrial Park Infrastructure Project (annual production of 500,000 tons of green low-carbon alloy aluminum liquid smelting and distribution sharing center) in Guangyuan Economic and Technological Development Zone, workers were performing their duties in an orderly manner. The project has a total construction area of ​​over 20,000 square meters, consisting of seven individual buildings and ancillary works such as integrated pipelines. The smelting workshop includes five alloy aluminum liquid production lines. Currently, all smelting furnaces have been installed, the enclosure structure is 70% complete, and the remaining ancillary buildings are undergoing decoration and finishing.

On Tuesday, May 12, the Arctial aluminum smelter project in northern Finland announced plans to produce its first batch of aluminum in the second half of 2029, a project expected to boost domestic aluminum production capacity in Europe. Maxime Vandersmissen, Arctial's Chief Commercial Officer, stated at the CRU World Aluminium Congress in London that this timeline is contingent on a final investment decision being reached by 2027 for the greenfield project, designed to have an annual capacity of 610,000 tons. Arctial will be the first new primary aluminum project built on the European continent in over 30 years, but it will still not be able to fully meet Europe's import demand.

According to foreign media reports, Oman plans to launch three major low-carbon aluminum projects within the Duqm Special Economic Zone (SEZAD). The most notable one is an electrolytic aluminum project invested by CMOC Group Limited. With a total investment of approximately 2.4 billion Omani Rials, the project will be built with an annual electrolytic aluminum production capacity of 530,000 tonnes, supported by downstream deep-processing facilities planned to reach an annual capacity of 620,000 tonnes of aluminum billets and pre-cast slabs.

On April 24, Berth No. 23 at the Shitobu Operation Area of Tieshan West Port District, Beihai Port Area, Beihai Port of Guangxi Beibu Gulf Port passed the autonomous region-level acceptance inspection for opening to the outside world. As Beihai's first 200,000-mt high-pile bulk cargo terminal, the berth will serve as a key gateway for the "raw material import + product export" operations of the Guangxi Investment Group Beihai Green Eco-Aluminum Project. Berth No. 23 at the Shitobu Operation Area is a major project coordinated and promoted at the level of the Guangxi Zhuang Autonomous Region, and also a critical piece of infrastructure for the New International Land-Sea Trade Corridor.

According to market sources, the Vietnam Dak Nong 450,000 mt aluminum project recently made certain progress, with the lower shells of 112 electrolysis cells in the Phase I project undertaken by the company successfully passing overall acceptance inspection. The successful completion of this period marked a phased breakthrough in the construction of the project's core section, safeguarding the on-schedule completion and commissioning of the project.

Recently, Baidong New District (Baise High-tech Zone) successfully introduced a project for the annual production of 100,000 mt of high performance low-carbon aluminum-based materials and deep processing. With a total investment of 200 million yuan, the project is located in the Liutang Park of Baise High-tech Zone. It mainly involves the construction of high-end aluminum alloy material production lines and deep processing production lines, producing high-end aluminum alloy ingots as well as high-end alloy components for automobiles, engines, radiators, new energy, and electronic applications. After the project reaches full production, it is expected to achieve an annual output value of approximately 2.5 billion yuan.

On March 31, the commissioning ceremony for the green technological upgrading project of aluminum-based new materials of Shandong Lubei Haisheng Biotechnology Co., Ltd. was held at the project site. This project is a key initiative of Lubei Group to promote green industrial transformation and address key capacity gaps. Since its commencement in 2024, it has accumulated an investment of 455 million yuan. Upon full operation, the project will save 128,000 tons of standard coal equivalent in energy consumption annually, significantly improving resource utilization and further solidifying the company's foundation for an annual alumina production capacity of 1 million tons.

Recently, construction officially began on the high-end rare earth aluminum alloy project in the Baotou Jinshan Economic Development Zone, with a total investment of approximately 500 million yuan and annual output of 100,000 mt. The project will be advanced in an orderly manner in two phases. Phase I will build a 30,000 mt high-end rare earth aluminum alloy production line, focusing on technology R&D and capacity release to rapidly achieve scaled-up production. Phase II will expand capacity by 70,000 mt, further extend, supplement, and strengthen the industrial chain, optimize the product mix, increase added value, and support Guyang in building a distinctive high-end rare earth aluminum alloy industrial cluster.

[SMM Aluminum Express News] PT Inalum has urged the Indonesian government to pause new alumina and aluminum projects due to oversupply risks and pressure on bauxite reserves. Indonesia’s push to build domestic processing has driven rapid investment, similar to nickel, but Inalum warns this could lead to the same issues (oversupply, falling prices, and environmental strain).