MAGNESIUM INDUSTRY

The principal uses of magnesium in an industrial context include: 

   • alloying with aluminum - 40-45%,

   • structural metal – magnesium alloy - 33-35%,

   • iron and steel processing - 13%,

   • electrochemical processing.

One of the greatest benefits of magnesium is its weight to strength ratio, it is 75% lighter than steel and 33% lighter than aluminium. Although one of the lightest metals, it is considerably strong, especially when mixed with other metals.

World production of magnesium is currently close to 800,000 tonnes per annum.  This figure is increasing, particularly due to the demands of the automotive industry. 

New magnesium alloys are being increasingly used to reduce weight, increase fuel efficiency and reduce greenhouse gas emissions.   As well, several innovative projects are underway around the world that utilize Magnesium as a key component. 

Over the past 30 years, China has become the world’s largest producer of magnesium.  However, production capacity was overbuilt and most use an older and highly polluting production process, with the result that several significant operations have been shut down recently.  In addition, domestic demand for Mg in China has been increasing.

Prices for Mg vary widely around the world.  Over the past ten years, US equivalent prices have been in the range of $2,000 to more than $7,000 per tonne.  Current US prices are about $2,200 per tonne.  Prices from China are typically the lowest however their exports typically have duties imposed by receiving countries.  In the US, for example, duties are in excess of 100%.

The Magnesium industry appears to be dominated by longer term supply contracts whereby major customers commit to buying production from manufacturers over a period of one to several years.

Some Uses for Magnesium

   • Cars, Consumers, Computers

   • As an alloy in other metals – most typically in aluminum (45% of Mg is used by the aluminum industry)

   • A key benefit of Mg is it’s low weight to strength ratio. 

 

An emerging opportunity for Mg is in the production of new energy storage (battery) devices. See article 1 and article 2.