Industrial Policies: Multiple Regions Roll Out Support Plans, Driving the Green and Intelligent Upgrade of the Foundry Industry
1. Policies Drive Refined Production and Recycled Material Transformation
The Non-Ferrous Metals Growth Stabilization Plan (2025-2026) issued by the Ministry of Industry and Information Technology together with seven other government departments specifies that high-precision thin-walled aluminum die castings and corrosion-resistant special copper castings are included in the catalog of key basic components for R&D, with corresponding subsidies for technological upgrading.
The plan encourages the construction of recycling bases for secondary copper and aluminum. The target output of recycled non-ferrous metals will exceed 20 million tons from 2026 to 2027, and the proportion of recycled raw materials used in the casting industry will keep rising.
The High-Quality Development Plan for the Aluminum Industry requires the capacity of recycled aluminum to surpass 15 million tons by 2027, and promotes the widespread adoption of clean energy smelting and flux-free green casting technologies in foundry processes.
2. Shandong Implements Regional Cluster Planning for Copper and Aluminum Castings
Shandong Province has released detailed measures to stabilize the growth of the non-ferrous metal sector, planning four major copper industry clusters and four major aluminum casting industrial zones.
Yantai and Weifang focus on ultra-high-pressure and new-energy vehicle castings; Linyi specializes in deep processing of recycled copper and aluminum castings.
The province targets an operating income of 660 billion yuan for the aluminum industry and a total output value of over 200 billion yuan for the copper industry in 2026. Targeted support will be provided for the launch of integrated die-casting and high-purity copper alloy casting projects.
3. EU CBAM Carbon Tariff Forces Green Transformation for Casting Enterprises
The EU Carbon Border Adjustment Mechanism (CBAM) will be fully implemented in 2026, with aluminum castings included in the taxable product list.
Chinese enterprises exporting aluminum castings to the EU are accelerating the renovation of energy-saving smelting furnaces and installing waste gas and residue recovery systems. Low-carbon casting has become a mandatory market access requirement for export castings.
High-energy-consuming small and medium-sized foundries will be phased out rapidly, leading to higher industrial concentration.
