By J.P. Weiler, Meridian Lightweight Technologies, Inc.
Magnesium is an essential material widely used in the automotive, aerospace, and metallurgical industries due to its lightweight properties, high strength-to-weight ratio, and recyclability. However, supply chain disruptions, price fluctuations, and geopolitical factors significantly impact its market dynamics. Understanding these trends is crucial for industries dependent on magnesium and for policymakers shaping trade and regulatory frameworks.
In the last several years, the global magnesium market has undergone significant changes in the supply and demand of both primary magnesium and magnesium overall. In 2023 and 2024, significant global changes have been seen, primarily regarding U.S. supply. China remains the dominant player in primary magnesium production, although its production has experienced fluctuations due to policy shifts and economic factors. This paper reviews the supply dynamics, trade complexities, and future outlook of the global magnesium industry.
Magnesium Supply
In 2023, the global primary magnesium output was approximately 940,000 tonnes,1-3 a decrease of approximately 15% from 2022. However, the primary market experienced a rebound in 2024 to 1 million tonnes, an increase of 11%,2 and it is projected to grow at a compound annual growth rate (CAGR) of 4.5% until 2034.4 Despite this expected growth, the market faces challenges such as environmental regulations, energy costs, and fluctuating demand.
China
Magnesium production in China was approximately 810,000 tonnes in 2023, a decrease of approximately 20% from 2022.1-3 In 2023, China’s production of primary magnesium accounted for approximately 85% of the global magnesium supply.1-3 Primary magnesium smelters located in the Shaanxi province produced approximately 460,000 tonnes of magnesium in 2023, accounting for nearly 60% of the total production in China and nearly 50% of the global supply. This is a year-over-year decrease of nearly 20% primarily resulting from local furnace upgrade policies.1,3
A rebound in production levels has been reported through 2024.3 Despite this, China’s smelters have been operating at roughly 50% capacity on average due to policy constraints and demand shifts.1,2 The primary magnesium smelters located in two provinces—Shaanxi and Shanxi—are responsible for the production of nearly 80% of China’s magnesium (Figure 1).3
United States
The U.S. had one primary magnesium smelter located on the Great Salt Lake in Utah that recovered magnesium from salt brines using an electrolytic process, but production was reported to have ceased in 2022.2 However, workstreams have been established to recover secondary magnesium through recycling processes using magnesium ingot scrap, magnesium casthouse scrap, and aluminum alloy scrap at secondary aluminum smelters in the U.S. In 2024, approximately 110,000 tonnes of secondary magnesium was recovered from these processes.
Rest of World
In 2023, primary magnesium production outside of China was approximately 120,000 tonnes, reflecting a year-over-year decrease of about 10%.1-2 Magnesium smelters in Israel, Brazil, Kazakhstan, Russia, and Turkey contributed nearly equal shares to this total (Figure 1).2
Future Projects
Numerous projects are currently in various stages of development worldwide, with approximately 550,000 tonnes of new capacity expected to become available within the next 2–3 years.1,3 Within China, over 750,000 tonnes of new capacity is planned in traditional magnesium-producing provinces, such as Shaanxi province, while over 800,000 tonnes of capacity is planned in emerging provinces.1,3 The majority of this capacity is based on the vertical Pidgeon process, while approximately 25% will utilize low-carbon technologies.1 The revitalization of low-carbon production in Qinghai is anticipated adding another 100,000 tonnes of capacity per annum.3
Limited progress has been made in projects in the rest of the world; however, several projects are planned to add a total of over 200,000 tonnes capacity, with the majority using low carbon processes, such as aluminothermic reduction or electrolysis.1 Finally, the development of a pilot plant in California has been supported by the U.S. Department of Defense to produce magnesium metal from sea brine, signaling potential U.S. domestic revitalization.2
Magnesium Demand
The global magnesium market was valued at $4.34 billion in 2023 and is expected to reach $6.67 billion by 2032, growing at a CAGR of 4.9%.5-6 In 2023, the global consumption of magnesium decreased year-over-year by 6.6% to a total of just over 1 million tonnes.1 The automotive industry remains a major consumer of magnesium, primarily for lightweight applications, such as transmission cases, steering wheels, and structural parts as high-pressure die-castings. In addition, magnesium is utilized as a key alloying element in aluminum production, particularly in the aerospace, packing, and automotive industries, as well as being used in iron and steel desulphurization processes and in titanium sponge production.
China
In 2023, China’s primary magnesium consumption was approximately 460,000 tonnes, representing a 2.5% decline from 2022.1 China accounted for 44% of global magnesium consumption, a significant increase from 20% in 2005. This growth reflects the expanding use of magnesium in emerging domestic applications.3
Aluminum alloying was the largest consumer of primary magnesium in China, accounting for 44% of total consumption. Magnesium alloying followed, representing 33% of the demand. Titanium sponge production consumed 11% of primary magnesium, while iron and steel desulfurization accounted for 5%. The remaining 7% was used in other applications.3
When considering secondary magnesium, the total consumption for magnesium alloy production was estimated to be approximately twice that of primary magnesium consumption.3 China retained 51% of its primary magnesium for domestic use, while 49% was exported to international markets.3 This is a significant increase from 2005, where 25% was retained domestically.
United States
Despite the absence of primary magnesium production, it is estimated that the U.S. consumed in the hundreds of thousands of tonnes of magnesium in both 2023 and 2024, demonstrating a strong reliance on imports from the international market.2 Magnesium alloy castings accounted for the largest share of U.S. consumption at 65%, primarily serving the automotive industry. Aluminum alloying made up 22% of demand, driven by applications in packaging, transportation, and the automotive sector. Iron and steel desulfurization accounted for 6% of consumption, while the remaining 7% was used in other applications.2
Future Applications
New applications for magnesium are expanding across multiple industries, highlighting its growing role in future consumption. In the medical field, magnesium is being used in color Doppler ultrasound systems to enhance imaging technology. In the energy sector, magnesium-based solid-state hydrogen storage is gaining attention as a promising solution for fuel cells and energy storage. The aerospace industry is also benefiting from magnesium’s lightweight properties, particularly in the low-altitude economy, where it supports applications such as drones. Additionally, magnesium is being integrated into large, complex cast structures for advanced body construction in the automotive industry.1
Trade Dynamics
Trade data indicate the complexity of the global market for magnesium. Countries with higher demand typically have a trade deficit with little to no primary production, while countries with primary production typically have a trade surplus.2,6 Further, the U.S., a major importer, has been affected by incoming duties on Chinese magnesium, leading to diversification in sourcing and complicated international trade flows.2 In 2023, China exported approximately 405,000 tonnes, nearly 50% of its primary production.1,3 These exports went to a total of 105 different destinations, including locations in Europe, North America, and Asia.3
The global magnesium market is a complex system. Figure 2 highlights key trends in global magnesium trade of pure magnesium. Although China exports only about 50% of its production, it remains the leading global importer of pure magnesium.3 Most of the world’s top five magnesium-importing regions rely heavily on Chinese exports, with the exception of the U.S. Instead, the U.S. sources nearly 75% of its magnesium imports from Israel and Turkey, as both countries export the majority of their trade to the U.S.
Figure 3 illustrates the complexity of global magnesium trade when considering all forms of magnesium, including pure, alloy, and scrap.6 While China’s trade distribution remains largely unchanged, other regions without primary magnesium production play a significant role in exports, maintaining multiple trade partnerships worldwide. The U.S. relies on a diverse range of suppliers, primarily importing from Israel, Europe, Asia, and North America. Unlike most importing regions, which typically depend on one or two key trade partners, the U.S. maintains trade relationships with five primary suppliers. Notably, the U.S. stands as the largest importer from five of the world’s key magnesium-exporting regions.
Future Outlook
The global magnesium market is projected to grow steadily through 2033, fueled by expanding production capacity and rising demand from key industries, such as automotive and aerospace. This growth is supported by significant global investments in advanced production technologies, including aluminothermic reduction and electrolysis-based methods. These advancements aim to stabilize international markets and diversify the global supply chain.
Beyond traditional applications, magnesium’s role in green technologies presents significant opportunities for future market expansion. Its potential use in hydrogen storage is gaining attention, while ongoing research into magnesium-based batteries and structural applications in sustainable construction could further drive demand.
Conclusion
As a critical material in global manufacturing, magnesium will continue to play a vital role in automotive, aerospace, and metallurgical applications. While China remains the dominant producer, shifts in trade dynamics, new production projects, and evolving regulations will shape the industry’s trajectory. The stability and profitability of the magnesium sector in the coming years will depend on sustained demand growth and strategic supply chain adaptations.
References
- Clark, A., “Global Magnesium Industry Overview,” presented at the 81st Annual World Magnesium Conference, Fukuoka, Japan, 2024.
- Bray, E.L., “Magnesium Metal,” Mineral Commodity Summaries, U.S. Geological Survey, January 2025.
- Chunming, D., “New Progress of China’s magnesium industry and the follow-up of carbon reduction and sustainability improvement,” presented at the 81st Annual World Magnesium Conference, Fukuoka, Japan, 2024.
- “Magnesium Alloy Ingot Market Analysis,” ChemAnalyst, April 2024, www.chemanalyst.com/industry-report/magnesium-alloy-ingot-market-4173.
- “Metal Magnesium Market Size, Share & Trends,” Straits Research, June 13, 2024, straitsresearch.com/report/metal-magnesium-market.
- “Magnesium,” Observatory of Economic Complexity (OEC), accessed February 2, 2025, www.oecd.org/en.
Editor’s Note: This article first appeared in the April 2025 issue of Light Metal Age. To receive the current issue, please subscribe.