SMM, June 30 – On June 15, 2026, according to the National Development and Reform Commission (NDRC) website, the NDRC, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the State-owned Assets Supervision and Administration Commission of the State Council, the National Energy Administration, and other departments jointly issued the Notice on Launching a Three-Year Campaign for Energy Conservation and Carbon Reduction Upgrades in Key Industries . The notice's requirements for the electrolytic aluminum industry include: promoting large-scale reduction cells of 500 kA and above, and accelerating the upgrade of prebaked anode cells below 300 kA. SMM has compiled publicly available market information. Excluding idled capacity, as of June 2026, cells of 300 kA and below accounted for 16% of total domestic capacity, of which approximately 1.75 million tonnes of capacity already have publicly announced replacement or upgrade projects. It should be noted that the Notice on Launching a Three-Year Campaign for Energy Conservation and Carbon Reduction Upgrades in Key Industries does not yet mandate compulsory phase-out provisions regarding cell amperage requirements. Domestic electrolytic aluminum production is therefore not expected to be materially affected in the near term. Meanwhile, capacity replacement and upgrade projects across the domestic industry are progressing steadily, with replacement projects surfacing frequently. As of June 30, 2026, a total of 13 electrolytic aluminum capacity replacement projects had been publicly announced, of which 8 are upgrade and retrofitting projects. As of June 2026, capacity equipped with 500 kA and above cells accounted for 12.9% of the total, a share expected to rise further going forward. Of the 13 publicly announced projects, 11 plan to build 500 kA or 600 kA cells, representing 93.1% of total proposed capacity under replacement projects. SMM Commentary: Electrolytic aluminum output is unlikely to see significant near-term disruption. However, as replacement and upgrade efforts continue, power consumption per tonne of domestic electrolytic aluminum production is expected to decline further, helping the industry meet its energy conservation and carbon reduction targets.

China National Machinery Industry Corporation (SINOMACH) announced that on June 11, 2026, its wholly-owned subsidiary, SINOMACH International Engineering (Jiangsu) Co., Ltd., signed a commercial contract with Huatong Angola Industrial Co., Ltd. at the 17th International Infrastructure Investment and Construction Summit Forum and Exhibition for the Phase II Project (Sections 1-6) of the Huatong Electrolytic Aluminum Production Line in Angola. The contract amount is RMB 1.717 billion, and the project involves the expansion of an annual production line with a capacity of 120,000 tons of electrolytic aluminum. SINOMACH International Jiangsu will provide design, equipment procurement, and installation and commissioning services.

Baotou City is promoting the transformation of its traditional advantageous industries into future-oriented industries, accelerating the formation of a complete industrial chain encompassing "new energy development—direct green electricity supply—electrolytic aluminum production." On the large screen of the Baotou Aluminum Industry Smart Energy Control Center, wind turbine blades can be seen slowly rotating deep in the grasslands 200 kilometers away. Dispatcher Xu Junxia, ​​pointing to the dynamically optimized dispatch curve, explained that the company has now shifted from production based on electricity demand to production based on electricity consumption, with green electricity now accounting for 33%. "Based on the trend of electricity prices in our spot market, we are maximizing the absorption of new energy sources and improving the overall electricity and energy consumption structure."

At the 2026 SMM Indonesia Critical Minerals Conference, SMM VP Shirley Wang said Indonesia's aluminum industry is following nickel's trajectory roughly a decade behind: raw bauxite exporter in 2014, Chinese-backed smelting expansion using nickel's existing infrastructure in 2026, and a fully integrated domestic cluster with recycling targeted by 2036. Nickel's pre-built power grids, deepwater ports, and industrial parks have compressed aluminum project timelines from 5-7 years to 1-2 years. Electrolytic aluminum generates ~36x more gross profit per MWh than NPI, making it the priority dispatch choice under grid constraints. Globally, Africa holds the bauxite, Asia concentrates alumina, and smelting is geographically distributed with no single country dominant.

SMM, June 1， According to SMM data , the average all-in cost (tax-inclusive) of the domestic electrolytic aluminum industry in May 2026 fell 1.9% month-on-month (MoM) and 2.2% year-on-year (YoY), primarily driven by declines in alumina prices and electricity prices during the period. Under the pressure of high inventory in May, domestic aluminum prices trended weak. The SMM A00 spot monthly average price (April 26 – May 25) edged down 0.8% MoM, while electrolytic aluminum profit margins expanded by RMB 110/mt to RMB 8,413/mt, with average profitability up 126.4% YoY. Based on monthly average price calculations, 100% of domestic electrolytic aluminum operating capacity was profitable in May. Breaking down the cost components: Alumina feedstock: According to SMM data, the SMM Alumina Index averaged RMB 2,674/mt in May (April 26 – May 25), down 2.3% MoM. Although average daily alumina output edged slightly lower within the month, alumina market fundamentals remained relatively loose amid the impact of overseas alumina import supply, compounded by the gradual ramp-up of new projects in Guangxi. Spot alumina prices lacked upside momentum. Entering June, as newly commissioned capacity continues to ramp up and maintenance outages are progressively completed, domestic alumina output is expected to increase, with spot prices likely to consolidate sideways for the most part. Auxiliary materials: In May, pre-baked anodes and fluoride salts saw price increases supported by cost-side factors, pushing up auxiliary material costs. Entering June, the pass-through of earlier cost-side weakness, combined with a relatively loose supply landscape, is expected to lead to a modest decline in pre-baked anode prices. On the fluoride salt front, downstream producers have limited capacity to absorb high prices, although elevated costs still provide a degree of price support; amid this tug-of-war, fluoride salt prices are expected to slip modestly MoM. Overall, electrolytic aluminum auxiliary material costs are projected to decline in June. Electricity prices: Power prices fell MoM in May, primarily because the flood season is approaching, with electricity prices in water-rich southern regions declining notably, significantly reducing electrolytic aluminum power costs. Entering June, coal price dynamics may push electricity prices slightly higher in some provinces; however, with the southern flood season underway, power prices are expected to continue declining overall. On balance, electrolytic aluminum power costs are expected to remain broadly stable. Overall , the SMM weighted-average all-in cost (tax-inclusive) of the domestic electrolytic aluminum industry edged lower in May 2026. Electrolytic aluminum costs in June are expected to remain relatively steady, with the average forecast at around RMB 15,800–16,200/mt .

Hongqiao Holdings stated during an investor survey that as of end-2025, the company had relocated 2.176 million mt of electrolytic aluminum capacity to its Yunnan production base. Further relocation of the remaining Yunnan capacity will be assessed based on local power supply stability and electricity tariffs, among other factors.

On May 24, the Tianshan Aluminum 1.4 million mt/year electrolytic aluminum green, low-carbon energy efficiency upgrade project, undertaken by Guizhou Construction & Investment Group's Seventh Metallurgical Installation Company, successfully completed one-time power-on commissioning, with all operating indicators meeting design targets and achieving the key milestone of power-on and production launch.

Wanji Aluminum (Xinjiang) Co., Ltd.'s 580,000 mt/year electrolytic aluminum construction project is targeting the ignition and trial run of the first phase by end-2026, with all three phases expected to be fully commissioned by June 2027.

On May 24th, the 1.4 million-ton green and low-carbon energy efficiency improvement project for electrolytic aluminum at Tianshan Aluminum, undertaken by the Seventh Metallurgical Installation Company of Guizhou Construction Investment Group, successfully achieved its first power-on milestone. All operational indicators were excellent and met all standards, marking a significant milestone in the project's commissioning. Located in the Xinjiang Uygur Autonomous Region, the project's Seventh Metallurgical Installation Company was primarily responsible for core construction tasks, including civil engineering of the electrolytic workshop, flue gas purification area engineering, electrical installation of the electrolytic workshop, and electrolytic cell fabrication and installation.

On May 19, at the construction site of the 580,000-ton electrolytic aluminum project of Wanji Aluminum (Xinjiang) Co., Ltd., located in the Camel Circle Industrial Park of Xinxing Economic and Technological Development Zone, tower cranes stood tall, machinery roared, and workers were seizing the prime construction period to carry out orderly operations. It is understood that the project plans to achieve the first stage of ignition and trial operation by the end of this year, and complete the ignition and commissioning of all three stages by June next year.