Banchao Magnesium Builds New Magnesium Plant in Xinjiang’s Hami City

Magnesium

Expansion Targets 2026 Launch Amid Growing Regional Output

Xinjiang Banchao Magnesium has started building a new magnesium plant in Hami, a key resource hub in northwest China’s Xinjiang province. Construction began on 1 March and is scheduled for completion by the end of 2025, with production expected in 2026.

The facility is designed to produce 20,000 tonnes/year of magnesium metal and 30,000 tonnes/year of magnesium alloy. The project reflects rising demand for lightweight metals used in automotive, aerospace, and green energy applications.

Banchao Magnesium is a subsidiary of Xinjiang Banchao, active in coal and non-ferrous metals mining as well as solar and wind power generation.

Xinjiang’s Magnesium Output Rises Sharply in 2024

The new Hami plant adds to Banchao’s five existing facilities, which already produce 20,000 t/yr of magnesium metal, 1.2 million t/yr of carbon products, and 600,000 t/yr of coke.

According to the China Nonferrous Metals Industry Association (CNMA), China’s magnesium metal output reached 953,100 tonnes in 2024, marking a 16% year-on-year increase.

Xinjiang province alone produced 86,300 tonnes, up 26% year-on-year, thanks to its rich dolomite and coal reserves—essential inputs for magnesium smelting. Most of the region’s magnesium facilities are concentrated in Hami due to resource accessibility and industrial infrastructure.

Xinjiang Jinsheng Also Expands Magnesium Capacity

Another local producer, Xinjiang Jinsheng, is constructing phase two of its Hami plant, adding 35,000 t/yr of capacity. Construction started in April 2024, with production scheduled for 2026.

Jinsheng’s first-phase plant, operational since 2011, reached full utilization in 2024, producing 20,000 tonnes/year. This continued regional investment reinforces Xinjiang’s strategic position in China's magnesium supply chain.

As global industries seek lightweight, sustainable metals, Xinjiang’s magnesium sector is poised for further growth.