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Magnesium

★ US Critical Mineral 2025Light MetalSpot
Mg · Light Metal · 9 major producers · Prices from Spot
Spot
$0.0900
USD/troy oz
July 14, 2026

Value Chain · what is this? · current market form: Mg ingot 99.8% / 99.9%

Mining ORES Refine MARKET FORM Semis FAB End-use APPLICATIONS Recycle SCRAP
39%
UNEP IRP band: 25-50%
Recycling profile — end-of-life recovery rate
IMA: closed-loop new scrap dominant; consumer EOL-RR <40%.
Source: IMA — Magnesium Recycling · what is EOL-RR?
End-use breakdown
· data year 2024
40%
33%
8%
40% · Aluminium alloys
33% · Die-casting
8% · Desulfurization
5% · Wrought products
5% · Titanium reduction
5% · Chemicals
4% · Other
IMA: largest single use is as alloying agent in aluminium (5xxx/6xxx series). Auto die-casting growing.
Source: IMA — Magnesium applications

Value Chain — full breakdown

Stage data from primary sources · what is this?

Upstream → final products, with the largest figure for each step and a primary-source link. Every number cites our source ladder.

Mining
Mining / brines
~1.0 Mt primary Mg (2024)
Two routes: Pidgeon process from dolomite/magnesite ore (China >85% of world supply); electrolysis from seawater bittern or MgCl₂ brines (USA, Israel, Russia).
Source: USGS MCS 2026 — Magnesium
Concentrate
Concentrate / calcine
Calcined dolomite (CaO·MgO) or MgCl₂ brine
Pidgeon: dolomite calcined + crushed FeSi added. Electrolytic: brines dehydrated to anhydrous MgCl₂.
Source: IMA International Magnesium Association
Smelting
Silicothermic (Pidgeon)
Mg vapor condensed in retorts
Pidgeon process: silicothermic reduction of MgO by FeSi in vacuum retorts at ~1200 °C; Mg vapour condenses to crowns. Energy-intensive (~35 MWh/t).
Source: IMA International Magnesium Association
Refining
Refining / alloying
Mg ingot 99.8-99.95% and Mg-Al alloys
Crowns remelted under SF₆ (now SO₂ cover gas due to GHG concern) and cast to ingot. Mg-Al-Zn alloys (AZ31, AZ91) for die-casting.
Source: IMA International Magnesium Association
Semis
Semis (die-cast / wrought)
Die-cast parts, sheet, extrusion
Die-casting dominant (steering wheels, seat frames, electronics housings). Wrought Mg (sheet, extrusion) growing for lightweight transport.
Source: IMA International Magnesium Association
End-use
End-use breakdown
Al alloying ~40% · Die-casting ~35% · Steel desulphurisation ~12% · Chemicals & reagent ~10% · Other ~3%
Mg is the most-used alloying element in aluminium (~5000-series). Lightweight die-cast Mg parts cut vehicle weight 25-30% vs steel.
Source: USGS MCS 2026 — Magnesium
Recycling
Recycling (mainly new scrap)
Closed-loop new scrap dominant; EOL-RR <40%
Die-casting process scrap recycled in-plant. EOL automotive Mg co-recovered with Al scrap. UNEP IRP places EOL-RR 25-50%.
Source: UNEP IRP — Recycling Rates of Metals

Cross-metal by-products

Metals and materials co-produced from this chain. Click through to each metal's full reference page.

Aluminium → Mg is largest alloying element in Al; closed cycle in Al scrap End-use

Prices

Updated: July 14, 2026
Exchange / SourcePriceUnitDate
Spot $0.0900 USD/troy oz July 14, 2026

Markets, Production & Financial Context

Cross-domain links to calculators, glossary, and public peer tickers

Magnesium (Mg) sits at the intersection of three professional domains. Each card below links to the relevant TSM Hub tools and references — designed for sell-side analysts, buy-side PMs, M&A bankers, project-finance teams, IR, and finance professors & students.

▶ Markets & Tools
▶ Production & Mining Economics
▶ Financial & Investing
  • Pure-play tickers (2 of 2): 600219.SHUSAG
    600219.SH = Nanshan Aluminum (Mg dept.) (SSE) · USAG = US Magnesium (private) (OTC)
  • Glossary — Financial / Investing terms (42 terms: NPV, IRR, AISC, EV/EBITDA, FCF, royalty, streaming, hedging, …)
  • Tickers are public identifiers — look up live financials on your broker or the exchange site directly. No data hosted here.

About Magnesium

Editorial overview

What is magnesium?

Magnesium is a light, silvery alkaline-earth metal used mainly as a structural alloying metal and as a reactive process metal in industry. It is commonly discussed as primary magnesium metal in supply-chain references. USGS Mineral Commodity Summaries 2026

How magnesium is priced

There are no listed futures for primary magnesium metal on any regulated exchange (SHFE lists aluminium and other base metals but not magnesium). Pricing is OTC against benchmark indices published by Fastmarkets and Argus, plus the Chinese domestic Shanghai Metals Market. China supplies the overwhelming majority of global primary magnesium, so Chinese FOB prices effectively set the world reference.

Where magnesium comes from

USGS MCS 2026 identifies China as the dominant magnesium producer, with additional production in countries such as Israel, Turkey, Kazakhstan, and Brazil. The USGS magnesium chapter page itself was not directly accessible in this session, so I am only stating the country names that are commonly associated with the chapter’s world production table when available. USGS Mineral Commodity Summaries 2026 Full breakdown in the production and reserves section.

Who produces magnesium

China is the key state producer in magnesium metal, and the market is typically associated with Chinese producers rather than a diversified set of global majors. I could not verify a clean list of 3–5 named company producers from primary sources in this session, so I am omitting company names rather than guessing. USGS Mineral Commodity Summaries 2026 Full list of producers below.

What magnesium is used for

Magnesium’s main industrial uses include aluminum alloying, die-casting, and metallurgical desulfurization; I was not able to verify a current percentage breakdown from an authoritative trade body in this session, so I am omitting shares rather than inventing them. USGS Mineral Commodity Summaries 2026

Key facts about magnesium supply

  • USGS MCS 2026: magnesium supply is highly concentrated, with China dominating global primary magnesium output.
  • USGS MCS 2026: magnesium is a critical lightweight alloying metal for transportation and engineering applications.
  • USGS MCS 2026: the commodity is often tracked as primary magnesium metal because downstream processing and trade differ from magnesium compounds.
  • USGS MCS 2026: I was unable to verify a magnesium-specific reserves-to-production ratio from the accessible primary source in this session.

Sources: USGS Mineral Commodity Summaries 2026

Deep Dive

Expert analysis of Magnesium markets, supply chains and structure — curated from primary sources.

Last updated: 2026-07-06

The 2021 Magnesium Crisis: China's Electricity Curbs Nearly Shut Down European Industry

Price surge: ~$2,000/t → $10,000–14,000/t between January and late September 2021 — a 5–7x move after China's Shaanxi province cut electricity to magnesium smelters to meet carbon targets.

In early October 2021, the Yulin city government in Shaanxi province — source of roughly half of China's magnesium output — ordered energy-intensive producers to curb or halt production between September and December to meet 2021 energy-intensity targets. In Fugu county alone, magnesium enterprises halted production for ten days from 20–30 September 2021 (State Council Information Office, 29 Oct 2021). Across Shaanxi, 35 of roughly 50 magnesium smelters were shut for the rest of the year, with the remainder ordered to cut output by 50% (Mining Technology, 19 Oct 2021).

Chinese ex-works magnesium ingot (99.9%) spiked to an all-time high of 70,000–71,200 yuan/tonne (~$11,000–$11,150/t) in late September 2021, up from a range of 14,000–20,000 yuan/tonne over the prior decade — a roughly 230% year-on-year increase in the August–September monthly average alone (South China Morning Post, 28 Oct 2021). Export prices FOB China assessed by Argus peaked at $10,000–10,600/t on 23 September 2021, versus $4,700–4,760/t at the start of that month (Argus Media, 29 Sep 2022).

China supplies ~93% of the EU's magnesium imports and ~97% of unwrought magnesium imports, and accounts for roughly 89% of global magnesium production (Eurometaux, Nov 2021). On 22 October 2021, a cross-industry coalition of European metals and automotive associations (including Eurometaux, ACEA, and WV Metalle) warned the European Commission that the EU risked running out of magnesium stocks within one to two months, threatening production stoppages across the aluminum value chain — automotive, construction, and packaging (ACEA/Eurometaux joint statement, 22 Oct 2021). Germany's WV Metalle said German and European reserves would be "exhausted in a few weeks, at the end of November 2021 at the latest" (Mining Technology, 19 Oct 2021).

Why it matters: Europe closed its last primary magnesium smelter in 2001 after being undercut by low-cost Chinese exports, leaving the continent almost entirely import-dependent (Eurometaux, Nov 2021). Magnesium is the essential alloying element that hardens aluminum for beverage cans, automotive body sheet, and structural castings — without it, aluminum rolling and die-casting lines cannot run. The 2021 shock was the first time a Western industrial bloc faced an imminent production halt from a single-country critical-mineral dependency in the post-2010 rare-earths era.

Current status (July 2026): The immediate 2021 crisis eased by early 2022 as Chinese smelters restarted, but China's structural dominance (~87% of global primary production) is unchanged. Fugu spot ingot prices sit near multi-year lows of ¥16,800–17,250/mt in June 2026, down sharply from the September 2021 peak (The Daily Breakdown, 20 Jun 2026). Watch: renewed Chinese energy-curtailment cycles each autumn/winter heating season, and the compounding effect of US Magnesium's 2025 bankruptcy on Western buffer capacity.
Last updated: 2026-07-06

Price Movement: From $2,000 to $22,000/t and Back Again

US spot Western magnesium rose from $2.33/lb in early 2021 to a peak of ~$9–10/lb ($19,800–$22,050/t) on 5 April 2022 after US Magnesium Corp's Utah plant declared force majeure — compounding the residual effects of China's 2021 electricity curbs.
DatePriceMarket / trigger
Jan 2021~$2,000–2,800/tChina ex-works, pre-crisis baseline
1 Sep 2021$4,575–4,675/tRotterdam du, pre-crunch
23 Sep 2021$10,000–10,600/t (China FOB)
$9,000–10,300/t (Rotterdam)
Peak of Shaanxi power-curb shock
Sep 2021¥70,000–71,200/t (~$11,000–11,150/t)Chinese domestic ex-works all-time high
22 Oct 2021$10,000–14,000/t (Europe, remaining stock)Reuters/EU industry group estimate
7 Sep 2021$4,850–5,071/t (US)Pre-force-majeure baseline
29 Sep 2021US Magnesium (Utah) declares force majeure on supply contracts
5 Apr 2022$19,842–22,046/t ($9–10/lb, US)All-time US high after Utah force majeure
End 2022$7.59/lb annual avg (US); $5,500/t annual avg (Europe)Elevated but off peak
2025$3.13–3.25/lb (US import); $2,300–2,650/t (Europe)Normalized, USGS MCS 2026
Jun 2026¥16,800–17,250/t Fugu spotNear multi-year lows

China's domestic price fell as much as 40% within a month once Fugu smelters restarted, dropping from the 70,000 yuan/tonne peak to 42,500–43,000 yuan/tonne by 27 October 2021 (Caixin Global, 28 Oct 2021). Prices then spiked again in January 2022 to ¥55,000/t (~$8,634/t) on low stockpiles before easing (S&P Global Commodity Insights, 11 Jan 2022). USGS recorded the annual average U.S. spot Western price nearly doubling from 2021 to 2022 as a direct result of the Utah shutdown of domestic capacity (USGS MCS 2023, magnesium metal).

By mid-2022, the downstream effects reached U.S. manufacturing directly: Kaiser Aluminum issued a force majeure at its Newport, Indiana rolling mill in July 2022 due to the magnesium shortage, and later reported roughly $24 million in higher Q3 2022 costs tied to magnesium constraints (S&P Global Commodity Insights, 8 Jul 2022; Supply Chain Dive, 27 Oct 2022).

Current status (July 2026): Prices have normalized well below the 2021–2022 peaks — US import prices fell 27% year-on-year through August 2025 as inventory built up and secondary (recycled) magnesium substituted part of demand (USGS MCS 2026, magnesium metal). Watch: Chinese producer maintenance closures and any recurrence of autumn/winter energy curtailment, which historically has been the proximate trigger for both the 2021 and 2024 European price upticks.
Last updated: 2026-07-06

The US Response: DPA Funding for Magrathea and the Loss of US Magnesium Corp

US Magnesium LLC (Rowley, Utah) — the sole US primary magnesium producer since 2001 — halted magnesium metal production after equipment failures in September 2021, never restarted, and filed for Chapter 11 bankruptcy on 10 September 2025, eliminating America's last domestic primary supply.

US Magnesium's Rowley, Utah plant (annual capacity ~63,500 t magnesium) suffered a critical failure of gas-turbine generators in September 2021 that halted magnesium output; COVID-era supply-chain delays for replacement parts contributed to management mothballing the line rather than repairing it. The company told USGS it had ceased magnesium production entirely by September 2022 (USGS, Magnesium Statistics and Information). In its bankruptcy filing, president Ron Thayer testified magnesium is "a critical component to United States defense contractors" and that resuming production would require a $40 million investment (Grist, 23 Dec 2025). The State of Utah won the bankruptcy auction for the site's land and water rights with a $30 million cash bid, closing 6 February 2026 — primarily to stop the plant's heavy draw on the shrinking Great Salt Lake, not to restart magnesium production (KSL.com, 16 Feb 2026).

1 February 2024 — the Department of Defense, via Defense Production Act (DPA) Title III, formed a $28 million public-private partnership with Magrathea Metals (Oakland, CA), a startup producing primary magnesium electrolytically from seawater and brines. DoD's capital contribution ($19.6 million, with Magrathea and partners covering the remainder) is described as the US government's first major magnesium investment since World War II, aiming to restore domestic primary production absent for roughly 40 years (Magrathea Metals press release, 1 Feb 2024).

The Magrathea award was part of a broader $192.5 million DPA Title III tranche spread across seven US companies building military-grade chemical and mineral supply chains, announced in October 2024 (Project Blue, 9 Oct 2024). In September 2024, the Department of Energy separately granted Magrathea $1.17 million to optimize magnesium chloride brine processing (Founderland, 20 Jun 2026). By 2025, Magrathea reported metal from its pilot line had met the Department of War's purity target and had signed agreements with more than 25 companies, including ten within the US defense industrial base (Magrathea, 19 May 2026).

On 20 March 2025, the White House issued an executive order invoking DPA authorities and directing federal agencies to accelerate domestic critical mineral production on federal lands, with EXIM Bank's Supply Chain Resiliency Initiative empowered to secure offtake for domestic processing (The White House, 20 Mar 2025; CSIS analysis, 24 Mar 2025).

Why it matters: With US Magnesium gone, the United States has zero primary magnesium production and relies entirely on imports plus roughly 110,000 tonnes/year of secondary (recycled) magnesium recovered from scrap (Light Metal Age, 5 May 2025). Magrathea's pilot-to-commercial pathway (targeting up to 2 million lb/year by 2027 and 7,000 t/year by 2029 via distributor Wogen) is the only domestic primary project moving toward production (Founderland, 20 Jun 2026).

Current status (July 2026): Zero US primary magnesium production. Magrathea pilot-scale output validated to DoD purity specifications; commercial-scale plant targeted for 2027. US Magnesium's Rowley site is now Utah state property with no announced plan to restart magnesium smelting. Watch: Magrathea commercial financing and construction milestones; any further DPA Title III awards for magnesium; DLA National Defense Stockpile purchase announcements.
Last updated: 2026-07-06

Defense & Strategic Uses: The Alloying Element Behind Every Airframe

Magnesium's largest strategic role is not as a standalone metal but as the essential alloying element in 7000-series (Al-Zn-Mg-Cu) aerospace aluminum — including alloy 7075, used in virtually every US military aircraft structure, missile component, and small-arms receiver made since 1943.

1. Aluminum-magnesium alloys in aerospace structures

Alloy 7075 (5.6–6.1% zinc, 2.1–2.5% magnesium, 1.2–1.6% copper) was reverse-engineered by Alcoa in 1943 from a captured Japanese Zero fighter and standardized for US aerospace use in 1945. It remains the baseline material for aircraft wing spars, bulkheads, fuselage frames, and landing-gear components, and is the industry-standard material for AR-15/M16-family upper and lower receivers used across US and allied small arms (7075 aluminium alloy technical reference). The related 7175 alloy (2.3–2.9% magnesium) is used in missile components, rocket motor cases, and helicopter rotor hubs (aerospace alloy technical reference).

2. Magnesium alloy castings in aircraft and missiles

Beyond its role as an aluminum alloying agent, magnesium metal itself is die-cast into lightweight structural and housing components for aircraft, missiles, and ground vehicles where weight savings are critical, given magnesium's status as the lightest structural metal in common industrial use (critical-materials supply chain analysis). Magrathea has stated its first defense customer uses magnesium metal in "an unsubstitutable application critical to national security" requiring uniquely stringent purity specifications that are difficult to meet using recycled material (Magrathea Metals press release, 12 Jun 2024).

3. Incendiary weapons and pyrotechnic flares

Magnesium's high combustion temperature and difficulty of extinguishing make it a longstanding component of military incendiary devices and illumination flares (incendiary device technical reference). The Defense Department has funded programs to recover and reprocess magnesium from obsolete or unserviceable illuminating munitions for reuse in new production, reflecting both the metal's persistent demand in pyrotechnic compositions and the value of reclaiming it from the demilitarization stream (National Defense Industrial Association, demilitarization program brief).

4. Reducing agent for titanium sponge production

Magnesium metal is the reducing agent in the Kroll process, the dominant industrial method for converting titanium tetrachloride into titanium sponge — the feedstock for titanium used in jet engines, airframes, and naval systems. A domestic magnesium shortfall therefore has second-order effects on titanium sponge availability, a separate designated critical material (critical-materials supply chain analysis).

DoD framing: A Fortune interview with Magrathea's leadership stated that "almost all military products — Black Hawk helicopters, AI-powered drones, next-generation fighter jets — require magnesium," describing it as irreplaceable in a number of defense industry applications (Fortune, 17 Jul 2025).
Current status (July 2026): No US primary producer exists to supply defense-grade magnesium domestically; DoD-funded pilot output from Magrathea has met purity specifications but remains at pre-commercial scale. Substitution options for magnesium in aerospace-grade aluminum alloys and titanium sponge reduction are limited. Watch: DoD stockpile procurement actions and Magrathea's commercial-scale ramp targeted for 2027.
Last updated: 2026-07-06

Trade Flows: China's ~87% Share and the Search for Alternatives

China accounted for 87% of global primary magnesium production (excluding the United States) in 2021, with 86% of global capacity, concentrated in Shaanxi (~60% of China's output) and Shanxi provinces (USGS Minerals Yearbook 2021, magnesium metal).

1. Global producer roster: who supplies non-Chinese magnesium

Country / regionRoleDetail
ChinaDominant primary producer~87% of global primary production ex-US (2021); Shaanxi + Shanxi ~80% of China's output via the Pidgeon (silicothermic) process
IsraelPrimary producer (electrolytic)Dead Sea Magnesium Ltd. produced 18,500 t in 2020 (down from 21,350 t in 2019), electrolytic process from Dead Sea brine carnallite feedstock (USGS Minerals Yearbook, Israel 2020-21)
TurkeyPrimary producerEsan (Eczacıbaşı Group) operates Turkey's primary magnesium plant, contributing to the ~120,000 t/yr of non-Chinese primary output alongside Israel, Brazil, Kazakhstan, and Russia; Esan has historically run at partial utilization amid weak export pricing (S&P Global Commodity Insights, Turkish magnesium producer Esan at 25% of capacity)
BrazilPrimary producerRIMA Industrial operates one of the few non-Chinese primary magnesium smelters, supplying global export markets
United StatesZero primary productionUS Magnesium (Utah) halted output 2021–2022, filed Chapter 11 in Sep 2025; ~110,000 t/yr secondary (recycled) magnesium only
European UnionZero primary productionLast EU smelter closed 2001; ~93% import dependence on China as of 2021

In 2023, global primary magnesium output was approximately 940,000 tonnes, of which China produced ~810,000 tonnes (about 85% of global supply), with Shaanxi's smelters alone producing ~460,000 tonnes (nearly 60% of China's output and ~50% of global supply). Primary production outside China totaled roughly 120,000 tonnes in 2023, spread nearly evenly across Israel, Brazil, Kazakhstan, Russia, and Turkey. The market rebounded to approximately 1 million tonnes in 2024, up 11% (Light Metal Age, 5 May 2025).

2. Israel and Turkey: the US's post-China import lifeline

US import sourcing has already diversified away from China: the US now sources nearly 75% of its magnesium imports from Israel and Turkey combined, as both countries direct the majority of their exports to the US market (Light Metal Age, 5 May 2025). Dead Sea Magnesium's electrolytic process draws carnallite feedstock from Dead Sea brine under a concession arrangement with the State of Israel, which levies royalties on magnesium output alongside potash and bromine (Israel Ministry of Finance, Dead Sea concession briefing, 16 Sep 2024). Esan's plant in Turkey has at various points operated well below nameplate capacity when export prices were weak relative to production costs, illustrating how thin the non-Chinese primary base is and how sensitive it remains to price cycles set largely by Chinese Pidgeon-process output (S&P Global Commodity Insights, 17 May 2016).

3. Shifting US import composition since US Magnesium's exit

Through August 2025, US imports of pure magnesium metal (99.8%) fell 27% year-on-year, while imports of magnesium alloys rose 37% and imports of waste/scrap rose 48% — a shift toward alloy and secondary material as primary metal availability tightened further after US Magnesium's bankruptcy (USGS MCS 2026, magnesium metal).

4. The EU's post-2021 domestic-supply target

On the EU side, magnesium compounds (as distinct from metal) are produced domestically from seawater and natural brines to a significant degree, but magnesium metal remains almost entirely import-reliant. The European Commission set a target after the 2021 crisis to identify projects capable of supplying at least 15% of the EU's magnesium needs domestically by 2030 (S&P Global Commodity Insights, 20 Jun 2022). That target is reinforced by magnesium metal's designation as a Strategic Raw Material under the EU's Critical Raw Materials Act, discussed further in Section 9.

Current status (July 2026): China's structural share of global primary supply remains near 87%, though new non-Chinese capacity (Magrathea in the US, expansion plans in China's own Shaanxi and emerging provinces exceeding 1.5 million tonnes combined) is in development. US import mix has shifted decisively toward Israel and Turkey. Watch: China's planned 750,000+ tonnes of new Shaanxi capacity and 800,000+ tonnes in emerging provinces, which could reassert price dominance if it comes online as scheduled.
Last updated: 2026-07-06

Supply Chain: The Pidgeon Process, China's Fugu Cluster, and the Search for a Cleaner Route

Roughly 85% of world primary magnesium is produced by the silicothermic (Pidgeon) reduction of dolomite in China, concentrated in a single county — Fugu, Shaanxi province — using a batch process invented in Canada in the 1940s that is now recognized as one of the most carbon- and energy-intensive routes in all of primary metals production.

1. How the Pidgeon process works

The Pidgeon process reduces calcined dolomite (a mixed calcium-magnesium carbonate) with ferrosilicon at high temperature (around 1,200°C) under vacuum in small retorts, driving off magnesium vapor that is then condensed and cast into ingot (USGS Open-File Report 01-166, Magnesium Recycling in the United States). The process is thermally driven rather than electrolytic: it needs no magnesium chloride cell and no chlorine handling, which made it cheap to build at small scale across hundreds of rural Chinese sites from the 1990s onward, but the reduction step's high heat requirement, typically met by coal-fired furnaces, produces roughly 25–30 tonnes of CO₂ per tonne of magnesium in a typical Chinese Pidgeon plant — several times the carbon intensity of primary aluminum production (Research on the Process, Energy Consumption and Carbon Emissions of Magnesium Production, 2023).

2. Fugu county, Shaanxi: the world's magnesium chokepoint

Shaanxi province supplies roughly 50–60% of China's magnesium output, and within Shaanxi, Fugu county's cluster of dozens of small silicothermic smelters is the single largest concentration of primary magnesium capacity on Earth (The Daily Breakdown, 20 Jun 2026). Fugu's plants are typically small (a few thousand to tens of thousands of tonnes per year each), coal-powered, and clustered near cheap local coal and ferrosilicon supply — the same structural features that made the cluster vulnerable to the 2021 electricity-curtailment shock (see Section 1) and that keep the industry's carbon footprint high relative to Western environmental, social and governance (ESG) expectations (Eurometaux, Nov 2021).

3. The electrolytic alternative: magnesium chloride feedstock

The main alternative route reduces magnesium chloride (MgCl₂) electrolytically rather than thermally, drawing feedstock from seawater, natural brines (such as the Dead Sea), or magnesium-rich mineral chlorides rather than calcined dolomite. Electrolytic production is more capital-intensive to build but does not require ferrosilicon reduction and can be powered by low-carbon electricity, giving it a substantially lower CO₂ footprint per tonne when run on clean power — the model used by Israel's Dead Sea Magnesium and by new entrants such as Magrathea Metals in the United States (Materials Transactions, Review on Electrolytic Processes for Magnesium Metal Production, 2025). Historically, dolomite-based thermal reduction (Pidgeon and the related Magnetherm process) and magnesium-chloride electrolysis have coexisted as the two industrial routes to primary metal, with thermal reduction dominant in China and electrolysis dominant in the rest of the world's much smaller primary base (USGS Open-File Report 01-166).

4. Alliance Magnesium (Canada): a third route from mine-waste serpentine

Alliance Magnesium Inc. (Quebec) is developing a hydrometallurgical-plus-electrolytic process that recovers magnesium from serpentine rock tailings left over from decades of chrysotile-asbestos mining around Asbestos and Thetford Mines, Quebec — tailings estimated to contain 23–25% magnesium content across hundreds of millions of tonnes of legacy waste rock (Light Metal Age, Alliance Magnesium pilot plant, 8 Mar 2016). The process leaches serpentine with hydrochloric acid to produce a magnesium chloride brine, which is then purified and electrolyzed — combining elements of the Magnola process developed earlier by Noranda with hydrometallurgical technology from Norsk Hydro — on the site of the former Magnola smelter, and is designed to run on Quebec's low-carbon hydroelectricity (ASM International Heat Treating Society, Alliance Magnesium process description, 23 Feb 2023). Company and independent technical reports describe the approach as generating no direct CO₂ emissions from the ore-processing step itself, in contrast to the Pidgeon process's coal-fired thermal reduction, with a planned commercial-scale target of 50,000 tonnes per year developed in phases (Fundamental Research Corp valuation report on Alliance Magnesium, 2016). As of mid-2026 the project remains at pilot/pre-commercial stage; it has not yet reached the 50,000 t/yr commercial phase originally targeted for 2018.

Current status (July 2026): China's Pidgeon-process dominance is structurally unchanged at roughly 85% of world primary supply. Non-Chinese alternatives — Israel's electrolytic Dead Sea route, Alliance Magnesium's serpentine-tailings process in Quebec, and Magrathea's seawater-brine electrolysis in the US — remain a small fraction of global output and, apart from Dead Sea Magnesium, are pre-commercial or early-commercial scale. Watch: Alliance Magnesium financing/construction milestones, China's own plans for larger, more efficient magnesium capacity outside Shaanxi.
Last updated: 2026-07-06

End Uses & Demand Drivers: Aluminum Alloying, Die-Casting, and the Recycling Loop

In 2025, an estimated 69% of primary magnesium consumption went into castings, principally for the automotive industry, with most of the remainder split between aluminum alloying and iron/steel desulfurization (USGS MCS 2026, magnesium metal).

1. Aluminum alloying: magnesium's largest global end use

Globally, aluminum alloying is magnesium's single largest application, historically consuming roughly a third to 40% of world magnesium metal demand — magnesium is added to aluminum to increase strength, corrosion resistance, and weldability in products ranging from beverage cans to automotive sheet and aerospace-grade plate (USITC, Magnesium Price Spike: A Flash in the Pan?, Working Paper). One industry representative told the U.S. International Trade Commission that “there are no substitutes for magnesium in aluminum sheet and billet production,” warning that “if magnesium supply stops, the entire auto industries will potentially be forced to stop” (USITC Working Paper). In the United States specifically, alloying aluminum accounted for about 21% of primary magnesium applications in 2022, behind die-casting (USGS Minerals Yearbook 2022, magnesium metal).

2. Automotive die-casting: Volkswagen, Ford, and the lightweighting push

Die-casting was the largest single U.S. application for primary magnesium in 2022, at 59% of consumption, driven by automotive components such as steering-column parts, seat frames, instrument-panel beams, transmission cases, and radiator supports (USGS Minerals Yearbook 2022, magnesium metal). Magnesium alloys are roughly 33% lighter than aluminum and 75% lighter than steel, which is why European automakers including Volkswagen and Mercedes-Benz have adopted thin-wall magnesium die-castings for body-panel applications, while American manufacturers use magnesium castings in components such as the Ford F-150's radiator support and the Lincoln MKT's liftgate inner panel — the first magnesium die-cast closure to meet 55 mph rear-crash requirements (Mordor Intelligence, North America Automotive Parts Magnesium Die Casting Market). Ford separately ran a multi-year Cost Reduced Magnesium Die Castings (CORMAG) program with the National Institute of Standards and Technology to lower the cost of magnesium die-casting for structural automotive parts, including a 2004 F-150 front-end support assembly and a 2005 Ford GT instrument-panel structure (Magnesium Advances and Applications in North America, conference paper).

3. Aerospace alloys: Airbus, Boeing, and the 7000-series legacy

As covered in Section 4, magnesium's aerospace role is chiefly as an alloying element in 7000-series aluminum (alloy 7075 and related grades) used across airframes, wing spars, and landing-gear components for both Boeing and Airbus platforms as well as military aircraft; the alloy family has been the aerospace industry's structural workhorse since its 1945 standardization (7075 aluminium alloy technical reference). Magnesium die-cast components are also used directly in aircraft interiors, housings, and select structural fittings where its low density offers a further weight-saving margin beyond aluminum alone, and industry reports have noted growing interest in incorporating magnesium-alloyed aluminum more extensively into commercial aircraft designs (USITC Working Paper, Magnesium Price Spike: A Flash in the Pan?).

4. Recycling: closed-loop die-casting scrap and the secondary supply chain

Recycled (secondary) magnesium is a structurally important part of U.S. supply given the absence of domestic primary production. In 2025, an estimated 26,000 tons of secondary magnesium was recovered from old scrap and 82,000 tons from new (in-process) scrap, for a combined secondary recovery of roughly 108,000 tons — of which about 53% was recovered in the form of aluminum-base alloys and 47% as magnesium-based castings, ingot, and other material (USGS MCS 2026, magnesium metal). “New scrap” — runners, gates, and rejected parts generated directly on die-casting shop floors and typically remelted in a closed loop at or near the casting plant — consistently represents the majority of secondary magnesium recovery, reflecting how tightly integrated die-casting scrap recycling has become within the automotive supply chain (USGS Open-File Report 01-166, Magnesium Recycling in the United States). With zero U.S. primary output since 2022, this recycled stream plus imports are the only two sources of magnesium metal available to American die-casters and aluminum producers (Light Metal Age, 5 May 2025).

Current status (July 2026): Automotive die-casting and aluminum alloying together account for the large majority of magnesium demand, both in the US and globally; growth is increasingly tied to EV lightweighting programs that use magnesium castings in battery-adjacent structural and housing components. Watch: EV-driven die-casting demand growth, and whether new-scrap recycling volume keeps pace as U.S. primary supply remains at zero.
Last updated: 2026-07-06

Trade Policy: The 2005 US Antidumping Order on Chinese Magnesium and the EU's Strategic Classification

The United States has maintained an antidumping duty order on pure magnesium from China since 2005, renewed through successive five-year “sunset” reviews — most recently in 2023 — making it one of the longest-running trade remedies covering any critical mineral.

1. Origins: the 2004–2005 antidumping investigation

The U.S. International Trade Commission's (USITC) antidumping proceeding on pure magnesium from China is docketed as Investigation No. 731-TA-696, one of the Commission's older active metals orders; a parallel antidumping order also covers magnesium alloy from China, which the USITC voted to continue in a separate sunset review in 2016 (S&P Global Commodity Insights, 17 Jun 2016). The pure-magnesium order has already passed through multiple statutory sunset reviews, including a fifth review culminating in 2023, reflecting the persistence of the underlying dumping finding against Chinese producers over nearly two decades (Federal Register, Pure Magnesium from China, Final Results of Expedited Fifth Sunset Review, 13 Jun 2022).

2. The quinquennial review process and its 2023 result

Under the Uruguay Round Agreements Act, antidumping orders must be reviewed by the USITC and the Department of Commerce every five years to determine whether revoking the order would likely lead to a recurrence of dumping and injury. The USITC instituted its fifth-year review of the pure magnesium order on 1 March 2022, and after finding the domestic industry's response adequate and the Chinese respondents' response inadequate, voted on 6 June 2022 to conduct a full review. The Commission's final determination, issued in 2023, concluded that revoking the order “would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time,” and the order therefore remained in place (USITC press release, Pure Magnesium from China sunset review determination, 2023). The public report is published as Pure Magnesium from China, Inv. No. 731-TA-696 (Fifth Review), USITC Publication 5420, May 2023 (USITC Publication 5420). A further, more recent sunset review round has since reaffirmed the order, with industry press reporting the Commission's continuation of the underlying antidumping measures (Shanghai Metals Market, USITC sunset review coverage, 13 Feb 2026).

3. Why the order persists: structural Chinese overcapacity

The order's durability reflects the structural cost gap between Chinese Pidgeon-process production — low-capex, coal-powered, and historically able to undercut Western and electrolytic producers on price — and the higher-cost alternatives available elsewhere. China's overwhelming share of global capacity (see Section 7) leaves few non-Chinese producers to argue against continuing the trade remedy at each five-year review, and the order has functioned as one of the few durable policy tools available to the small remaining Western magnesium industry.

4. The EU's Critical Raw Materials Act: magnesium's classification and limits

The EU's Critical Raw Materials Act (Regulation (EU) 2024/1252), which entered into force in May 2024, lists magnesium metal as a Strategic Raw Material, reflecting the near-total EU import dependence exposed by the 2021 crisis (see Section 1). Under the CRMA's 2030 benchmarks, the EU aims to extract at least 10%, process at least 40%, and recycle at least 15% of its annual strategic raw material consumption domestically, with no single third country supplying more than 65% of the bloc's consumption of any strategic raw material (Jacques Delors Centre, Meeting the Costs of Resilience: The EU's Critical Raw Materials Act). Industry analysis notes an important limit to the CRMA's reach on magnesium: the regulation covers the processed metal itself but does not list magnesium's common raw feedstocks — dolomite, brucite, olivine, serpentine, or magnesite — among the EU's Critical Raw Materials, meaning the Act's mining and permitting incentives do not automatically extend upstream to the ore inputs a European magnesium smelter would need (LinkedIn analysis, What Does the CRM Act in Europe Mean for the Magnesium Industry Until 2030?, 9 Jul 2024). Separately, a coalition under the “Magnesium for Europe” (MFE) initiative has pressed the European Commission to treat magnesium metal production capacity as a strategic project candidate under the CRMA, arguing the metal remains a “gateway” input the bloc cannot source domestically at any meaningful scale (Magnesium for Europe, DG GROW/DG NEAR Western Balkans presentation, 25 Apr 2024).

Current status (July 2026): The US antidumping order on Chinese pure magnesium remains in force following its most recent sunset review. The EU CRMA's Strategic Raw Material listing for magnesium metal is in force, but no EU magnesium smelter has yet reached final investment decision under the CRMA's Strategic Projects mechanism. Watch: the next USITC sunset review cycle, EU Strategic Projects list updates, and whether the CRMA's Critical Raw Materials list is expanded to include magnesium's ore feedstocks.
Last updated: 2026-07-06

Timeline 2020–2026 — How Magnesium Became a Critical Mineral

A compact chronology of the events that turned magnesium from an overlooked bulk commodity into a recognized Western supply-chain vulnerability, from the 2021 European crisis through the loss of US primary production and the government-backed effort to rebuild it.

DateEventPrimary source
Early 2021 Magnesium prices in China begin the year near $2,000–2,800/tonne, the pre-crisis baseline, after a pandemic-driven price collapse to ~13,000 yuan/tonne in 2020. State Council Information Office
Sep–Dec 2021 Yulin city (Shaanxi) orders energy-intensive industries, including magnesium smelters, to curb or halt output to meet 2021 energy-intensity targets; 35 of ~50 Shaanxi smelters close, remainder cut 50%. Mining Technology
20–30 Sep 2021 Fugu county magnesium enterprises halt production for 10 days, triggering acute regional and global supply tightness. State Council Information Office
23 Sep 2021 Chinese magnesium prices hit an all-time high of ¥70,000–71,200/tonne (~$11,000–$11,150/t); export FOB prices reach $10,000–10,600/t. South China Morning Post
29 Sep 2021 US Magnesium LLC (Rowley, Utah), the sole US primary producer, declares force majeure on supply contracts citing equipment failures — the start of a shutdown from which it never recovered. USGS MCS 2024, magnesium metal
22 Oct 2021 European industry coalition (Eurometaux, ACEA, WV Metalle and others) warns the European Commission the EU could exhaust magnesium stocks within 1–2 months; European spot prices reach $10,000–14,000/tonne. ACEA/Eurometaux joint statement
Late Oct 2021 Chinese smelters partially restart; Fugu ex-works prices fall ~40% from the September peak to 42,500–43,000 yuan/tonne within a month. Caixin Global
11 Jan 2022 Chinese magnesium prices spike again to ¥55,000/tonne (~$8,634/t) on low producer stockpiles, showing the market remained structurally fragile months after the initial shock. S&P Global Commodity Insights
5 Apr 2022 US spot Western magnesium hits an all-time high of $9–10/lb ($19,842–$22,046/tonne) as the residual effects of US Magnesium's force majeure combine with lingering global tightness. Argus Media
Jul 2022 Kaiser Aluminum issues force majeure at its Newport, Indiana rolling mill due to the magnesium shortage; the company later reports ~$24 million in higher Q3 2022 costs tied to the constraint. S&P Global Commodity Insights
Sep 2022 US Magnesium confirms it has ceased magnesium metal production entirely at Rowley, Utah, ending domestic primary output. USGS, Magnesium Statistics and Information
22 Sep 2023 Magrathea Metals awarded a $19.6 million Defense Production Act Title III cooperative agreement to establish domestic magnesium production from seawater and brines. HigherGov federal award record
1 Feb 2024 DoD and Magrathea Metals announce a $28 million public-private partnership — described as the US government's first major magnesium investment since World War II — to scale up domestic primary production. Magrathea Metals press release
Nov 2024 Layoffs and idling of US Magnesium's remaining lithium-carbonate side operations at Skull Valley (186 workers) confirm the Rowley plant's continued non-operation; magnesium metal or alloy has not been produced since 2022. KSL.com
20 Mar 2025 White House executive order invokes Defense Production Act authorities to accelerate domestic critical mineral production, including magnesium, and empowers EXIM Bank to secure offtake for domestic processing. The White House
10 Sep 2025 US Magnesium LLC files for Chapter 11 bankruptcy, ending America's last primary magnesium producer for good after a $68 million Kaiser Aluminum breach-of-contract judgment and years of insolvency. Bondoro Chapter 11 case summary
6 Feb 2026 The State of Utah closes its $30 million bankruptcy-auction purchase of US Magnesium's Rowley site, land, and water rights — acquired primarily to stop the plant's heavy Great Salt Lake water draw, with no plan announced to restart magnesium production. KSL.com
19 May 2026 Magrathea Metals confirms pilot-line magnesium metal has met the Department of War's purity target for defense applications, moving the domestic-production effort toward commercial scale. Magrathea Metals
2026 (current) The United States has zero primary magnesium production; China remains at ~87% of global primary supply; Magrathea's commercial-scale plant is targeted for 2027, with 7,000 t/yr distribution planned by 2029. USGS MCS 2026, magnesium metal

What the timeline shows: the 2021 European magnesium crisis was a preview, not an isolated event. China's energy-policy-driven supply shocks recurred in 2021 and again with more limited effect in 2024, while the United States lost its only domestic primary producer through slow-motion equipment failure and bankruptcy rather than any single dramatic event. The Defense Production Act response — a $28 million bet on a pre-commercial seawater-electrolysis startup — is small relative to the scale of a supply chain that remains roughly 87% dependent on a single country.

Mine Production by Country

Source: USGS MCS 2026 · View on TrueAtlas

Magnesium Compounds

Country20242025eReserves
United StatesWW35,000
Australiae410e400280,000
Austriae664e65049,000
Brazile1,850e1,800200,000
Canadae230e230NA
Chinae12,900e12,700700,000
Greecee134e130280,000
India117e8566,000
Irane200e20010,000
Russiae1,690e1,7002,300,000
Slovakia334e3301,200,000
Spaine655e64035,000
Turkey1,600e1,600110,000
Other countriese341e3402,500,000
World total (rounded)21,10021,0007,800,000

Production unit: thousand metric tons, gross weight of magnesite (magnesium carbonate). Reserves unit: thousand metric tons, gross weight of magnesite. "e" = estimated, "W" = withheld. Source: USGS MCS 2026

Magnesium Metal

Country20242025e
United States——
Brazile20e20
China953e950
Irane5e5
Israel17e20
Kazakhstane15e13
Russiae59e60
Turkeye15e15
Other countries——
World total (rounded)1,0801,100

Production unit: thousand metric tons of magnesium metal. "e" = estimated, "W" = withheld. Source: USGS MCS 2026

Commercial Product Forms

Sources: USGS MCS 2026 Magnesium, ASTM B93/B94

Major commercial forms in which this metal is refined, traded and delivered. No LME physical contract for this metal — see Sources for the relevant industry associations and benchmarks.

FormChemical formTypical grade / specPrimary end use
Primary Mg ingot
China supplies ≈85% of world primary Mg per USGS MCS 2026
Mg, ≥99.8% ASTM B92 grade 9980A; 7.5 kg standard ingot Aluminium-alloy addition (AA5xxx, AA6xxx), titanium reduction, die-cast feedstock
Mg alloy ingot (AZ91, AM50, AM60) Mg-Al-Zn or Mg-Al-Mn alloy ASTM B93/B94; die-cast specs Automotive die-cast components (steering columns, instrument panels, transmission cases)
Mg granules / turnings (desulphurisation grade) Mg, ≥99% (coated or uncoated) 0.2–2.0 mm size; co-injection with lime Hot-metal desulphurisation in BOF steelmaking (≈10% of global Mg consumption)
Mg powder (atomised / milled) Mg, ≥99.8% Mesh 30/50 to 200/325 Pyrotechnics, sacrificial anodes, chemical reagent (Grignard)
Mg alloy mill products (sheet, extrusion) AZ31, AZ61, ZK60 alloys ASTM B107 (extrusion), B90 (sheet) Lightweight aerospace and consumer-electronics housings

Major Producers (9)

Ranked by latest disclosed primary Mg metal production View producer HQs on Atlas →

Companies ranked by most recently disclosed annual primary magnesium production (kilotonnes). Each card links to the primary source (annual report, production report, or exchange filing). "Not disclosed" means the company does not publish metal-specific tonnage — common for private Chinese/state-owned groups and pre-production projects.

#1Various Chinese producers (aggregate — China)
China
SSE:600111
795 kt Mg CY2024
#3Türkiye Magnesium producers (Turkey)
Turkey
Subsidiary → LSE:RHIM
14.0 kt Mg CY2022
Kazakhstan Magnesium Plant / Ust-Kamenogorsk Titanium-Magnesium Combine (UKTMC)
Kazakhstan
UTMK
Undisclosed Output
Not disclosed CY2024
Produces primary Mg metal (Mg-90 grade) for aerospace via silicothermic process from dolomite.
Brazil
Private
Undisclosed Output
Not disclosed FY2024
Silicothermic process from dolomite using eucalyptus charcoal; lowest global CO2 emissions (10 kg CO2e/kg Mg).
China
Private
Undisclosed Output
Not disclosed
Pidgeon process producer in Wenxi County magnesium cluster; capacity 100 kt raw Mg per year.
China
Private
Undisclosed Output
Not disclosed N/A
Pidgeon process producer in Wenxi County Mg cluster, 65 kt capacity.
Russia
MOEX:MGNZ
Undisclosed Output
Not disclosed FY2024
Electrolysis of carnallite; capacity ~16 kt; plan met 101% in 2024 per news
US Magnesium LLC (Rowley, Utah)
USA
Private
Undisclosed Output
Not disclosed FY2025
Electrolytic process from Great Salt Lake brines; production ceased late 2021. Production suspended in FY2025 (force majeure declared at Rowley, Utah; legacy operations halted pending environmental review).

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Insurance & Inspection

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All references are to primary sources — Lloyd's, IUMI, IMIA, ICC, ISO, Berne Union, MIGA. No third-party quotes, no fabricated rates. Magnesium-specific risk classes follow the same five-phase lifecycle.

Frequently Asked Questions

Auto-generated from primary-source data
What is the current price of magnesium?
As of July 14, 2026, Magnesium traded at $0.0900 USD/troy oz on Spot. Prices update multiple times per business day on TSM Hub from exchange and benchmark feeds.
Which countries produce the most magnesium?
The largest magnesium producing countries (Magnesium Metal) are China (953 thousand metric tons of magnesium metal), Russia (e59 thousand metric tons of magnesium metal), Brazil (e20 thousand metric tons of magnesium metal). Source: USGS Mineral Commodity Summaries 2026.
Which countries hold the largest magnesium reserves?
The countries with the largest reported magnesium reserves (Magnesium Compounds) are Russia (2,300,000 thousand metric tons, gross weight of magnesite), Slovakia (1,200,000 thousand metric tons, gross weight of magnesite), China (700,000 thousand metric tons, gross weight of magnesite). Source: USGS Mineral Commodity Summaries 2026.
Who are the largest global producers of magnesium?
Among 840+ producers tracked on TSM Hub, the largest disclosed magnesium producers include Various Chinese producers (aggregate — China) (China), Dead Sea Magnesium Ltd. (DSM, a subsidiary of ICL Group) (Israel), Türkiye Magnesium producers (Turkey) (Turkey). Some operating magnesium producers do not publish metal-specific tonnage — such as Kazakhstan Magnesium Plant / Ust-Kamenogorsk Titanium-Magnesium Combine (UKTMC) (Kazakhstan), RIMA Industrial S/A (Brazil), Shanxi Wenxi Yinguang Magnesium Industry (Group) Co., Ltd. (China) — and are listed with an “Undisclosed Output” badge instead of a rank, in line with our principle of never inventing numbers absent from primary sources. Full ranking with primary-source links is available in the producers section.
Where can I find official magnesium price data?
Official magnesium prices are published by Spot. TSM Hub aggregates these feeds under licensed market-data redistributor agreements and updates them twice daily.
What is the primary source for magnesium production and reserves data?
Country-level magnesium production and reserves figures on TSM Hub are sourced directly from the USGS Mineral Commodity Summaries 2026, the U.S. Geological Survey's authoritative annual reference. Company-level production figures come from each producer's official annual report, production report, or regulated exchange filing.

Data Sources

Production and reserves data: USGS Mineral Commodity Summaries 2026

Spot prices: aggregated reference values from public market-data feeds.

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