Yidian Aluminium Capacity Replacement Signals China’s Smelter Shift to Inner Mongolia

Yidian Aluminium

Yidian aluminium capacity replacement is accelerating as the producer moves Henan output to Inner Mongolia. The plan replaces 240,000 t/yr with a new smelter due by May 2026. As a result, the Yidian aluminium capacity replacement aligns with China’s greener energy push and capacity cap. Meanwhile, the Yidian aluminium capacity replacement supports scale and lower-cost power in Chifeng.

Inner Mongolia build replaces Henan smelter

Yidian’s Hengkang unit operates a 240,000 t/yr smelter in Henan. The company will transfer this capacity to Dongshan in Inner Mongolia. Construction starts in August, with production targeted for May 2026. However, Hengkang will demolish the Henan site in May 2026. The plant currently uses 400-kA electrolytic baths.

Policy, power, and project scale

China encourages upgrades to efficient baths and cleaner power. Therefore, the move fits Beijing’s 45mn t/yr aluminium capacity cap. Inner Mongolia offers renewable and captive power optionality. Dongshan is already building a 1mn t/yr complex in Chifeng. The first 500,000 t/yr phase targets a December start. The transferred Henan quota will form part of phase two.

The Metalnomist Commentary

Capacity swaps continue to migrate Chinese aluminium north toward cheaper, lower-carbon power hubs. Watch how Inner Mongolia’s energy mix impacts CO₂ intensity and premiums. Timing around December start and May 2026 handover will shape regional alumina and anode flows.