In July 2025, China's primary aluminum production capacity demonstrated steady growth with continued dynamic adjustments across regions. By the end of July, the total installed capacity reached 44.7 million tons per year, while the operating capacity stood at 44.1 million tons per year, an increase of 50,000 tons per year compared to the previous month. The growth in operating capacity this month was primarily driven by the resumption of production projects in regions such as Guizhou and Guangxi. The new primary aluminum project in Honghe, Yunnan, commenced operations, with its capacity quota sourced from the replacement of existing operating capacity. While this does not theoretically alter the overall production capacity, it impacts production capabilities in certain regions.
Specifically, on July 20, the first phase of the energy-saving renovation project at Baise Guangtou Yinhai Aluminum's second-phase electrolysis facility, involving 84 electrolytic cells with a capacity of 50,000 tons, entered the restart and production resumption phase. On July 9, the Yunnan Green and Low-Carbon Demonstration Industrial Park officially began operations, and the first production line of the low-carbon aluminum project by Yunnan Honghe New Materials Co., Ltd. was also launched on the same day. The project has a total planned capacity of 1.9286 million tons per year, to be constructed in four series (A, B, C, and D) with phased construction and commissioning. The initial phase of Series B, with a capacity of 160,000 tons per year, has been put into operation. The Yunnan Department of Industry and Information Technology publicly announced the capacity replacement plan for this project.
After adjustments, the output in June was 3.645 million tons. The estimated output for July is 3.769 million tons, representing a year-on-year increase of 1.5%. The average daily output reached 121,600 tons, showing a slight month-on-month growth of 0.07%.
Figure 1: China's Primary Aluminum Production (Annualized)
According to data from the International Aluminum Institute (IAI), overseas primary aluminum production in June 2025 was 2.42 million tons, a year-on-year decrease of 0.2%. From January to June, overseas primary aluminum production totaled 14.633 million tons, down 0.2% year-on-year, with the decline narrowing further month-on-month. By region, Europe, Asia (excluding China), South America, and Africa saw varying degrees of production growth, with year-on-year increases of 0.2%, 1.0%, 1.6%, and 3.1%, respectively. In contrast, North America and the Gulf Cooperation Council (GCC) experienced year-on-year declines of 0.6% and 2.5%, respectively.
Figure 2: IAI Overseas Primary Aluminum Daily Production
In July 2025, the Arctial project, jointly initiated by Rio Tinto, ABB, and local Finnish companies, officially commenced a feasibility study. Located in the Kokkola Industrial Park in Finland, the project aims to establish Europe's first new primary aluminum smelter in over 30 years by 2029. In addition to the Finnish project, Rio Tinto announced in July that it would license its AP60 technology to Canada's Alouette Aluminum for upgrading existing production lines. Meanwhile, the 120,000-ton primary aluminum project invested by Huatong Angola Industry has entered the equipment debugging stage and is expected to officially commence operations in the fourth quarter of 2025.