Yunnan Set to Become China’s Top Electrolytic Aluminum Province: The Rise of the “Green Aluminum Valley”
KUNMING, CHINA — Following nearly a decade of large-scale industrial relocation, Yunnan Province is poised to leapfrog existing leaders to become China’s largest electrolytic aluminum production hub.
Strategic Leap: Yunnan’s Path to No. 1
During a press conference on May 13 titled “Launching the 15th Five-Year Plan,” Zhao Junmin, Executive Vice Governor of Yunnan, announced significant milestones for the province’s metal industry:
Current Standing: As of 2025, Yunnan’s operational capacity reached 6.5 million tons, ranking 2nd nationally.
Economic Impact: The output value of the green aluminum industrial chain hit 200.28 billion RMB.
Future Outlook: Once all projects currently under construction are commissioned, Yunnan’s capacity will officially become the No. 1 in China.
Currently, China’s electrolytic aluminum capacity is distributed across 17 provinces. According to FuBao Information, Shandong remains the current leader with 6.69 million tons (14.81% of national capacity), followed closely by Yunnan (14.79%), Inner Mongolia (14.55%), Xinjiang (14.02%), and Gansu (6.78%).
“North-to-South” Migration: The Power of Hydropower
Historically, the energy-intensive electrolytic aluminum industry was concentrated in northern China near coal reserves. However, tightened regulations in 2017 and China’s “Dual Carbon” goals have triggered a massive industrial shift known as “North-to-South Migration” .
Yunnan has emerged as the primary destination due to its unparalleled renewable energy advantages:
Total Installed Capacity: 171 million kW as of 2025.
Green Power Ratio: 91.2% of Yunnan’s power comes from renewable sources.
Low Carbon Footprint: .Yunnan’s average CO2 emission factor for electricity is 0.1333, merely one-quarter of the national average, aligning with the global push for low-carbon aluminum production.
Industrial Catalysts: Major Relocations
The rapid growth of Yunnan’s aluminum sector has been driven by strategic partnerships with industry giants:
CHALCO (Aluminum Corporation of China): A 2018 strategic agreement led to the reorganization of Yunnan Metallurgical Group, bringing 1.2 million tons of capacity to the province.
Shandong Weiqiao Group: In 2019, the group established a 2.03-million-ton project in Wenshan, Yunnan.
Production Growth: Driven by these landmark projects, Yunnan’s electrolytic aluminum output reached 6.16 million tons in 2025, a year-on-year increase of 10.8%.
Future Strategy: 100% Local Conversion and the “Green Aluminum Valley”
Yunnan is moving beyond raw production toward high-value downstream processing. Vice Governor Zhao emphasized a goal of 100% on-site conversion of molten aluminum and 100% deep processing of aluminum materials.
The province’s Action Plan for Building a Modern Industrial System, released in January, outlines the roadmap for the “Green Aluminum Valley”:
Key Hubs: Focused on Wenshan and Honghe, with regional links to Dali, Zhaotong, Qujing, and Kunming.
Secondary Aluminum Integration: Promoting the fusion of recycled aluminum with advanced processing.
2027 Targets: Yunnan aims for an 80% aluminum alloying rate and an industrial chain value of 250 billion RMB by 2027.
What makes Yunnan the Green Aluminum Valley?
Its 91.2% renewable energy ratio makes it a global leader in low-carbon aluminum production.
Data Source: First Financial (Yicai) | “Yunnan will become the largest province in China for electrolytic aluminum production.” /Author: Li Xiuzhong
Figure 1: Yunnan Green Aluminum Innovation Industrial Park (Source: Yunnan Daily)
Figure 2: Panoramic aerial view of Baihetan Hydropower Station (Source: WeChat Official Account “Alu-Ore Connect”; Photo by Xie Lei )
