On June 9th, Kazakhstani Prime Minister Orzas Bektonov met with Liu Yongxing, Chairman of China Eastern Hope Group, and the two sides officially finalized a vertical integrated aluminum industrial park project with a total investment of 12 billion US dollars. The project is centered around the circular economy and will cover the entire industry chain of bauxite mining, alumina refining, electrolytic aluminum smelting, and high-end deep processing. It will also be equipped with a 3 GW renewable energy power generation facility, aiming to build the world’s first “zero carbon aluminum” closed-loop production base from mining to high value-added products.
Core highlights of the project:
Balancing scale and technology: The first phase of the project will construct an annual output of 2 million tons of alumina plant and 1 million tons of electrolytic aluminum plant, using internationally leading clean metallurgical technology, and reducing carbon emissions intensity by more than 40% compared to traditional processes.
Driven by green energy: The installed capacity of renewable energy such as wind power reaches 3 gigawatts, which can meet 80% of the park’s electricity demand. It directly benchmarks with the EU Carbon Border Adjustment Mechanism (CBAM) standards and exports products to the European market will avoid high carbon tariffs.
Employment and industrial upgrading: It is expected to create over 10000 local job opportunities and commit to technology transfer and employee training programs to help Kazakhstan transform from a “resource exporting country” to a “manufacturing economy”.
Strategic depth: industrial resonance of China Kazakhstan “the Belt and Road” cooperation
This cooperation is not only a single project investment, but also reflects the deep binding between China and Kazakhstan in resource complementarity and supply chain security.
Resource location: Kazakhstan’s proven bauxite reserves are among the top five in the world, and the electricity price is only 1/3 of that of China’s coastal areas. Overlapping the geographical advantages of the “the Belt and Road” land transport hub, it can radiate the markets of the EU, Central Asia and China.
Industrial upgrading: The project introduces metal deep processing links (such as automotive aluminum plates and aviation aluminum materials) to fill the gap in Kazakhstan’s manufacturing industry and promote a 30% -50% increase in the added value of its non-ferrous metal exports.
Green Diplomacy: By bundling renewable energy and low-carbon technologies, Chinese companies’ voice in the global green metal industry is further enhanced, forming a strategic hedge against the “green barriers” of Europe and America.
Global aluminum industry reshuffle: Chinese companies’ ‘new paradigm for going global’
This move by Dongfang Hope Group marks a leap for Chinese aluminum enterprises from capacity output to technical standard output.
Avoiding trade risks: The EU plans to increase the proportion of “green aluminum” imports to 60% by 2030. This project can bypass traditional trade barriers through localized production and directly integrate into the European new energy vehicle industry chain (such as Tesla’s Berlin factory).
Closed loop of the entire industry chain: Building a “Kazakhstan Mining China Technology EU Market” triangular system to reduce logistics and political risks. It is estimated that the project can reduce carbon emissions caused by long-distance transportation by approximately 1.2 million tons per year after reaching production capacity.
Synergy effect: The photovoltaic and polycrystalline silicon sectors under the group can form a linkage with the aluminum industry, such as using Kazakhstan’s solar resources to build photovoltaic power stations, further reducing the energy consumption cost of electrolytic aluminum.
Future challenges and industry impacts
Despite the broad prospects of the project, multiple challenges still need to be addressed.
Geopolitical risk: The United States and Europe are intensifying efforts to “de Sinicize key mineral supply chains,” and Kazakhstan, as a member of the Eurasian Economic Union led by Russia, may face Western pressure.
Localization of technology: Harbin’s industrial foundation is weak, and the production of high-end aluminum materials requires long-term technical adaptation. The key challenge for Dongfang’s commitment to increasing the proportion of local employees (with a target of reaching 70% within 5 years) will be the key test.
Overcapacity concerns: The global utilization rate of electrolytic aluminum production capacity has fallen below 65%, but the annual growth rate of green aluminum demand exceeds 25%. This project is expected to open up a blue ocean market through differentiated positioning (low-carbon, high-end).
Post time: Jun-17-2025