The Department of Labor’s

Exposing Exploitation in Global Supply Chains Series

Aluminum. It’s everywhere.

It is in the bicycles we ride and the cars we drive, the electronics we use, and the satellites that get us where we need to be. It provides a roof over our heads and allows skyscrapers to soar. It's a chameleon in industry: light enough for fuel-efficient vehicles and strong enough for aircraft fuselages. Best of all, it's endlessly recyclable.     

With global aluminum demand expected to increase by 40% by 2030 as the world shifts to cleaner energy and transportation, scrutinizing its global supply chain to safeguard against labor exploitation is now more important than ever.

Photo Credit: Breakingpic/Pexels
Aluminum soda cans.

An industrial area in Xinjiang that is protected behind a fence lined with barbed wire and guard towers.

 

The Tarnished Path of China's Aluminum Industry

China is the world's largest aluminum producer, generating over half of the global supply. Production is increasingly concentrated in the Xinjiang Uyghur Autonomous Region, where over one million Uyghurs and members of other persecuted groups are targeted as part of state-sponsored labor transfer programs. The region has become a notable hub for producing aluminum and automotive components in China, and the eight major aluminum companies in Xinjiang are associated with these programs.

Workers in Peril

Laborers face perilous conditions in aluminum facilities, working in sweltering and dangerous smelting rooms and hazardous carbon anode manufacturing plants. Not only are the workers’ movements restricted, but they are also under constant surveillance and allowed little or no contact with family member They receive little pay, work long hours, and have reported experiencing severe overcrowding and deprivation of sleep and food.

Photo Credit: © Zhaojiankang via Getty Images
Metal smelting furnace in Chinese steel mills.

The consequences of Xinjiang's forced labor practices don’t end at the factory gates. They ripple through the global aluminum supply chain, potentially tainting goods in multiple industries and markets.

Generally, aluminum produced in Xinjiang is shipped to other provinces in the form of unprocessed metal blocks or ingots and blended with aluminum from other regions. This, combined with the country’s opaque supplier trading system, makes traceability efforts extremely difficult.

From Xinjiang to Global Markets:

In 2023, China maintained its position as a global aluminum powerhouse, exporting $34.9 billion worth of aluminum products. The country also dominates the supply of aluminum components essential for automotive manufacturing, with Mexico emerging as the top importer of these products.

Aluminum:1 China’s leading export markets, 2018–2022

Downstream Goods at Risk

Once exported, tainted aluminum can infiltrate international markets undetected, impacting various sectors and goods, including cars, aircraft, appliances, healthcare equipment, electronics, food packaging, beverage cans, and construction supplies and tools.

Major car companies are at risk of sourcing materials tainted by labor abuses in Xinjiang

China plays a pivotal role in the global automotive sector as a leading manufacturing hub and exporter of auto parts and vehicles. The region's aluminum is integrated into a vast network of auto parts suppliers, many of whom have direct relationships with global car brands. Numerous global car brands also have extensive manufacturing operations in China and are deeply integrated with local supply chains. This leaves companies vulnerable to unknowingly incorporating Xinjiang-sourced aluminum in their vehicles.

Photo Credit: Nur Photo/Getty Images
A large number of Chinese-made cars at a shipping port.

Mexico's Growing Auto Industry: A Highway for Potentially Tainted Aluminum

Mexico is now the world's fourth-largest auto parts producer. This growth, coupled with Mexico’s significant imports of Chinese aluminum products and auto parts, raises concerns about potential pathways for tainted aluminum products to infiltrate international markets. Numerous global car brands operate assembly plants in Mexico, and approximately 85% of the country's finished vehicles and auto parts are exported to the United States. The interconnectedness of these supply chains underscores the need for automotive companies to have vigilant quality control measures.

Photo Credit: © Susana Gonzalez/Bloomberg via Getty Images
An employee works on the production line of the new generation Volkswagen AG Beetle at the company’s assembly plant in Puebla, Mexico.

Recommendation for the Auto Industry

  • Take measures to mitigate risks of forced labor within the auto supply chain, including with direct suppliers in Xinjiang and other suppliers or sub-suppliers outside Xinjiang that source aluminum directly or indirectly from the region
  • Establish a sophisticated, comprehensive approach to due diligence that reflects the complexity of modern supply chains
  • Collaborate with suppliers and intermediaries to improve or develop compliance programs aligned with the Uyghur Forced Labor Prevention Act UFLPA requirements

To learn more, visit our supply chain hub!

DOL Supply Chain Research