Magnesium Die-Casting Growth Constrained by China Supply Chain Dominance

International Magnesium Association (IMA)

Magnesium die-casting adoption remains limited despite cost advantages over aluminum, as supply chain risks and price volatility concerns overshadow material benefits. Primary magnesium prices have reached parity or dropped below aluminum prices over the past year, theoretically supporting substitution in automotive applications. However, magnesium die-casting expansion faces significant headwinds from China's 90% global market share and associated geopolitical supply risks that discourage automotive manufacturers from switching materials.

Material Advantages Drive Theoretical Demand for Magnesium Applications

Magnesium offers compelling technical advantages for automotive die-casting applications, particularly in electric vehicle lightweighting strategies. The metal's density equals approximately two-thirds that of aluminum, making it the lightest structural metal available for automotive components. Meanwhile, magnesium's lower melting point reduces energy consumption during casting processes, while higher thermal conductivity improves heat dissipation performance.

Automotive manufacturers currently use magnesium die-casting for engine blocks, transmission cases, steering wheels, and interior brackets where weight reduction delivers maximum benefit. These applications leverage magnesium's superior strength-to-weight ratio compared to aluminum alloys. However, aluminum maintains advantages in tensile strength for high-stress structural applications, limiting magnesium's potential market penetration.

Supply Chain Concentration Creates Investment Hesitation

China's overwhelming dominance of global magnesium production creates substantial supply security concerns for automotive manufacturers considering magnesium die-casting adoption. The country produces approximately 950,000 tonnes annually, representing 90% of global output, while other production remains limited to Brazil, Russia, Turkey, and Israel. As a result, no active primary magnesium production exists in Europe or the United States following US Magnesium's suspension in November 2024.

Recent price volatility reinforced automotive industry caution regarding magnesium die-casting investments, with the 2021 price spike prompting some manufacturers to halt new magnesium component development. CM Group managing director Alan Clark noted that die-casters remain concerned about magnesium price exposure without sufficient long-term supply guarantees. Therefore, automotive companies prioritize aluminum's supply security over magnesium's material advantages and cost benefits.

Environmental restrictions, semi-coke limitations, slag disposal procedures, VAT enforcement, capacity cuts, and tight dolomite supply have compounded Chinese production volatility. Brazilian magnesium producer Rima's CEO Ricardo Vicintin emphasized that geopolitical concerns explain widespread reluctance to increase magnesium usage. Consequently, magnesium die-casting growth remains constrained despite favorable economics and technical performance characteristics.

The Metalnomist Commentary

The magnesium die-casting market exemplifies how supply chain concentration can limit material adoption despite superior technical and economic attributes. While non-Chinese projects like Latrobe Magnesium, Verde Magnesium, and MFE Magnesium offer future diversification potential, none currently operate at commercial scale, leaving the automotive industry dependent on Chinese supply for the foreseeable future.

US Magnesium bankruptcy exposes fragility in US primary magnesium supply

US Magnesium

The US Magnesium bankruptcy marks a major blow to US primary magnesium supply. Filed under Chapter 11 in Delaware, the US Magnesium bankruptcy covers an estimated $100mn–500mn in liabilities. The US Magnesium bankruptcy follows legal rulings over failed deliveries to Kaiser Aluminum Warrick. As a result, the collapse threatens domestic supply from America’s only commercial-scale primary magnesium producer.

Court ruling and force majeure set stage for US Magnesium bankruptcy

A recent court ruling played a central role in triggering the US Magnesium bankruptcy. In August, a court ordered US Magnesium to reimburse Kaiser Aluminum Warrick $55mn for higher magnesium costs. The award included an additional $12.9mn in interest linked to missed contractual deliveries. However, the operational stress began earlier, when US Magnesium declared force majeure in September 2021. That decision later forced Kaiser to declare force majeure at its Warrick rolling mill in July 2022.

These cascading disruptions reveal how concentrated the US magnesium supply chain had become. When the sole producer faltered, downstream rolling and alloy operations had few alternative sources. Therefore, contractual penalties and higher replacement costs quickly translated into mounting financial liabilities.

US Magnesium bankruptcy leaves strategic gap in domestic supply

The US Magnesium bankruptcy removes America’s only commercial-scale primary magnesium producer from the market, at least temporarily. US Magnesium produced primary metal, lithium carbonate and other chemical products from Great Salt Lake brines. Its closure risks deeper import dependence for lightweight alloys used in automotive, aerospace and defense. Meanwhile, lithium carbonate and specialty chemical customers must now reassess sourcing and inventory strategies.

US policymakers have highlighted magnesium as a critical input for aluminum rolling and casting. However, domestic primary capacity now effectively sits in Chapter 11 restructuring. As a result, buyers will lean harder on imports, potentially from jurisdictions with higher geopolitical or ESG risk. Price volatility could increase if logistics disruptions or trade measures limit available supply.

The bankruptcy process may ultimately restructure US Magnesium rather than eliminate the asset base entirely. Creditors and potential buyers will evaluate whether operations at the Great Salt Lake remain economically viable. Therefore, the Chapter 11 outcome will shape how quickly any domestic primary magnesium capacity can return.

The Metalnomist Commentary

US Magnesium’s collapse highlights the risks of single-point dependence for metals with specialised production routes. For aluminum producers and alloy users, diversifying supply and investing in recycling now look less optional and more urgent. Investors should also note how legal liabilities from failed deliveries can cascade into full-scale restructuring when markets tighten.

Xinjiang Jinsheng Magnesium Expands Production Capacity in China

Xinjiang Jinsheng, New plant

New phase of plant construction to increase magnesium metal and alloy production by 35,000 t/yr.

Chinese magnesium producer Xinjiang Jinsheng has officially commenced the construction of the second phase of its Hami-based plant in Xinjiang province. This phase will add 35,000 tonnes per year of production capacity for magnesium metal and alloy. The construction, which began in April 2024, is expected to be completed and operational by the end of 2026, significantly boosting Jinsheng's production capabilities.

Expansion of Jinsheng’s Magnesium Production

The Hami plant’s first phase, which began production in 2011, has reached a full capacity utilization of 20,000 tonnes per year by 2024. With the addition of the second phase, Jinsheng will increase its total production capacity for magnesium metal and alloys to 55,000 tonnes per year. This expansion is a key development for the company, as it strengthens its position in the competitive magnesium industry.

Qixin Alloy's Role and Acquisition by WZ Group

Xinjiang Jinsheng Magnesium is a subsidiary of Zhejiang Qixin Alloy, which operates three magnesium plants in China: Jinsheng Magnesium in Hami, Taiyang Magnesium in Wuzhong (Ningxia), and Jinshi Magnesium in Alashan (Inner Mongolia). Together, these facilities contribute a total production capacity of 80,000 tonnes per year.

In August 2023, Zhejiang Qixin Alloy was acquired by WZ Group, a state-owned enterprise with a significant presence in the industrial sector. WZ Group’s acquisition of Qixin is part of its strategy to strengthen its foothold in the magnesium industry. The synergy between WZ’s existing subsidiaries and Qixin is expected to optimize WZ’s industrial structure and enhance its overall competitiveness.

China’s Magnesium Industry Growth

China remains the world’s leading producer of magnesium, with a total output of 953,100 tonnes of magnesium metal in 2024. Of this, 52,800 tonnes were produced in Xinjiang province, where Jinsheng’s Hami plant plays a critical role. The continued growth in China’s magnesium production is driven by the increasing demand for magnesium alloys in industries such as automotive, aerospace, and electronics.

Conclusion

The expansion of Xinjiang Jinsheng’s magnesium production capacity represents a major step in the company's growth and China's broader efforts to maintain its dominance in the global magnesium market. With the support of WZ Group, Jinsheng’s enhanced production capabilities will strengthen its position as a leading supplier of magnesium metal and alloys.

Aluminium-Magnesium Alloy Foundry Output Rises as China’s Auto Lightweighting Demand Grows

Al-Mg alloy foundry

Aluminium-magnesium alloy foundry output in China rose strongly in 2025 as the automotive sector increased demand for lightweight structural materials. Output climbed by 8.8% from a year earlier to 9.05mn t, making it the fastest-growing major foundry product category.

Aluminium-magnesium alloy foundry output outpaced grey cast iron, ductile iron and steel castings, according to the China Foundry Association. The increase reflects the growing role of aluminium and magnesium in vehicle weight reduction, emissions reduction and new energy vehicle design.

Aluminium-magnesium alloy foundry output has also expanded steadily over a longer period. Compared with 6.8mn t in 2020, production rose by 33.1% over five years, equal to a compound annual growth rate of 5.9%.

The figures show that China’s foundry sector is shifting toward lighter, higher-value materials. Automotive demand remains the main driver, especially as electric vehicle and hybrid platforms require more weight-efficient structures.

Automotive Lightweighting Drives Alloy Casting Growth

China’s automotive sector consumed 15.8mn t of foundry products in 2025, up 5% from a year earlier. The sector accounted for 30.2% of total foundry demand, making it the largest and most important end-use market.

Lightweighting is becoming more important because automakers need to improve energy efficiency, extend driving range and reduce lifecycle emissions. Aluminium-magnesium castings support those goals by replacing heavier components in selected structural and mechanical applications.

New energy vehicles are a major demand source. Electric vehicles and plug-in hybrids need lighter body structures to offset battery weight, while also supporting higher efficiency and better performance.

This trend benefits aluminium-magnesium alloy producers, die casters and foundries with automotive qualification. It also supports demand for higher-quality feedstock, tighter process control and more consistent alloy chemistry.

China’s total foundry output across all materials reached 52.3mn t in 2025, up 3.1% from a year earlier. That was the second-highest level since 2001, after 54.05mn t in 2021.

The overall foundry market is therefore growing, but the strongest momentum is in lightweight alloys. This shows how vehicle electrification and emissions policy are reshaping metal demand inside China’s manufacturing base.

Magnesium Feedstock Demand Strengthens With Foundry Expansion

Magnesium alloy feedstock consumption rose by 32% on the year to 215,000t in 2025. The increase was driven by stronger aluminium-magnesium alloy foundry output and broader use of lightweight casting materials.

This matters because magnesium is a smaller but strategically important metal. It is used in aluminium alloys, die casting and lightweight components, making it closely tied to automotive and transport applications.

Upstream magnesium metal output also increased. China produced 391,200t of magnesium metal in January-April, up 21.6% from a year earlier.

The rise in magnesium production suggests that upstream supply is responding to stronger downstream alloy demand. However, the sector remains exposed to energy costs, environmental controls and regional production concentration.

For aluminium and magnesium markets, China’s foundry data confirm a structural demand trend. Lightweight casting demand is no longer a niche story. It is becoming a core part of automotive materials strategy.

The next phase will depend on vehicle production growth, new energy vehicle penetration and the ability of foundries to meet stricter quality standards. As automakers push for lighter platforms, aluminium-magnesium alloys should remain one of the main beneficiaries.

The Metalnomist Commentary

China’s foundry data show that lightweighting is becoming a real metals demand driver, not just an automotive design concept. Aluminium-magnesium alloys are gaining because EVs and hybrids need lighter structures to offset battery weight and improve efficiency.

Magnesium Added to Greenland Resources License for Malmberg Project

Greenland Resources

Greenland Resources has confirmed that magnesium will be included in its draft exploration license for the Malmberg project in east-central Greenland. The updated scope expands the project’s strategic value beyond molybdenum, as the magnesium Greenland Resources license now aligns with critical mineral priorities in both the US and EU, where domestic magnesium production is absent.

The Greenland government verified magnesium’s presence in the Malmberg deposit, prompting regulators to recommend formal inclusion. The magnesium will be recovered as a byproduct of molybdenum extraction and may also be recovered from saline tailings water, according to Greenland Resources. This multi-source extraction strategy enhances the site’s economic and critical materials relevance.

Dual Critical Mineral Strategy Enhances Malmberg Project Value

The expanded magnesium Greenland Resources license adds new momentum to the Malmberg project, which is already positioned as a high-grade molybdenum source. In February 2025, Greenland Resources signed a 10-year, $1.6 billion offtake deal with Outokumpu, a Finland-based stainless steel producer, for molybdenum oxide. The addition of magnesium strengthens the project’s appeal to industrial buyers facing supply shortfalls.

Magnesium is widely used in lightweight alloys, defense applications, and battery systems, making it a key focus for strategic sourcing. The company’s plan to extract magnesium from both ore and tailings brine also reflects a growing industry trend toward zero-waste and water-integrated metallurgy.

US and EU Magnesium Dependence Highlights Strategic Importance

Neither the United States nor the European Union currently hosts domestic magnesium production, despite listing the metal as a critical raw material. The magnesium Greenland Resources license positions Greenland as a potential supplier to Western markets seeking non-Chinese sources of magnesium.

As supply chain resilience becomes central to industrial policy, Greenland’s geostrategic location and mineral endowment could play a more prominent role in EU and US critical mineral strategies. With permitting underway and magnesium officially recognized, Greenland Resources gains leverage in future financing, offtake, and export agreements.

The Metalnomist Commentary

Adding magnesium to the Greenland Resources license broadens the Malmberg project’s relevance in critical mineral geopolitics. In a supply environment dominated by China, even byproduct recovery from molybdenum mining becomes a strategic lever for Western industrial resilience.

China's Magnesium Sector Faces Oversupply and Price Challenges Despite Rising Output

China's Magnesium

China’s magnesium industry, which accounts for a staggering 83% of the world’s magnesium production, is grappling with challenges of oversupply and volatile prices, according to insights shared at the 27th annual conference of the China Magnesium Association (CMA) held in Xi'an.

Decade-Long Capacity and Utilization Issues

Over the past decade, China’s magnesium production capacity has ranged between 1.3 million and 1.5 million tonnes per year (t/yr). However, actual output has lagged behind at 800,000 to 1 million t/yr, resulting in an average utilization rate of just 63%, according to data from the China Nonferrous Metals Industry Association (CNMA).

Dependence on Traditional Sectors

The sector’s primary consumption is still tied to traditional industries like aluminium alloys, steel, and titanium sponge. Attempts to diversify into new applications, such as magnesium alloy construction sheets, consumer electronics, and new energy vehicles, have been slow. This limited innovation has contributed to an oversupply and pushed magnesium prices to near production costs.

Shifting Trends in Titanium Sponge Production

The use of magnesium in titanium sponge production has declined due to its environmental impact and price volatility. According to Jiang Baowei, lead engineer at Pangang Vanadium and Titanium Resources, many producers now use in-house magnesium obtained through electrolysis of titanium tetrachloride residue, reducing environmental pollution and stabilizing costs. In 2023, China’s titanium sponge production capacity reached 220,000 t/yr, supported by 250,000 t/yr of in-house electrolytic magnesium production.

Rising Production Amid Challenges

Despite these hurdles, China’s magnesium production rose to 702,900 tonnes during January-September 2024, an 18% year-on-year increase, fueled by resumed production in Shaanxi, the country’s largest magnesium-producing region. Output in Shaanxi grew by 14%, while neighboring Shanxi saw a 10% rise. Shaanxi alone houses 50 producers with a combined capacity of 678,000 t/yr, including 34 producers in Fugu County.

CMA’s Call to Action

Ge Honglin, CNMA president, urged the industry to emphasize magnesium’s benefits as a light structural metal and explore emerging markets like hydrogen storage and new energy vehicles. He also called for price stabilization to ensure affordability and reduce market volatility.

Sustainable Production Gains

The industry has made strides in energy efficiency, reducing the energy required to produce 1 tonne of magnesium from 5.2 tonnes of standard coal in 2012 to just 4 tonnes in 2023. Over the same period, magnesium consumption in structural materials more than doubled to 192,100 tonnes, contributing to a sharp rise in overall consumption, up by 76% since 2012.

China’s magnesium sector continues to grow in global prominence, but it faces an urgent need to diversify its applications, reduce environmental impacts, and stabilize pricing to maintain its leadership in the global market.

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.

ABM Utah Lithium Project Targets Direct Extraction and Magnesium Output

ABM

ABM Utah lithium project plans could add a new US domestic source of lithium carbonate equivalent and magnesium if feasibility work supports development. American Battery Materials is assessing a direct lithium extraction facility in Utah tied to its Lisbon Valley project.

The ABM Utah lithium project is designed to produce 10,000 t/yr of lithium carbonate equivalent. The proposed facility would also produce 20,000 t/yr of magnesium ingots, giving the project a broader critical minerals profile.

The ABM Utah lithium project is located in the Paradox Basin, which straddles southern Utah and Colorado. The region sits in a historic seabed and contains lithium, magnesium, bromine, potash and potassium.

Historical data from Lisbon Valley show lithium values ranging from 81-500ppm. The next test is whether those values can support a commercial direct lithium extraction operation with competitive recovery, cost and product quality.

Direct Lithium Extraction Could Support US Battery Supply

Direct lithium extraction is becoming more important as the US seeks domestic lithium supply without relying only on hard-rock mining or traditional evaporation routes. DLE can potentially recover lithium from brines faster and with a smaller surface footprint.

For ABM, the strategic opportunity is to convert Lisbon Valley brine resources into battery-linked lithium carbonate equivalent. A 10,000 t/yr project would not dominate the market, but it could become a useful domestic supply source if successfully developed.

The project also fits US policy priorities. Washington is trying to secure more lithium, magnesium and other critical materials for batteries, defence, energy storage and manufacturing.

However, DLE projects remain technically demanding. Brine chemistry, recovery rates, reagent consumption, water handling, scaling, impurity control and operating cost will determine whether the Lisbon Valley project can move beyond feasibility.

Product qualification will also matter. Battery customers need consistent lithium carbonate quality, and that requires reliable processing from brine extraction through purification and final product production.

Magnesium Adds Strategic Value to the Project

The planned magnesium output gives the project an additional industrial angle. Magnesium ingots are used in aluminium alloys, die casting, lightweight components and specialty applications.

US magnesium supply has strategic relevance because magnesium supports automotive lightweighting, aerospace materials and defence-linked manufacturing. A domestic source could help reduce exposure to imported material.

The Paradox Basin’s broader mineral endowment also strengthens the project’s optionality. Lithium, magnesium, bromine, potash and potassium create potential for multi-product development, depending on commercial recovery and market conditions.

Multi-product projects can improve economics if by-products are saleable and processing flows are integrated efficiently. However, they can also add complexity because each product requires its own specification, market and operating route.

For ABM, feasibility work will need to prove both the lithium and magnesium business cases. Investors and customers will watch the project’s recovery assumptions, capital cost, permitting path and development timeline.

If successful, the Lisbon Valley project could support a more diversified US critical minerals base. Its importance lies not only in lithium supply, but in the possibility of linking battery materials with magnesium production from one regional resource system.

The Metalnomist Commentary

ABM’s Utah plan shows how US lithium projects are increasingly being framed as multi-mineral supply platforms. The key question is whether direct lithium extraction can turn Paradox Basin brines into qualified lithium carbonate and meaningful magnesium output at commercial cost.

Verde Magnesium Listed as EU Strategic Project

Verde Magnesium

CRMA recognition boosts Romania’s plan to revive European magnesium production

EU Backs Verde Magnesium for Local Supply Security

The EU has designated Verde Magnesium’s Romanian project as a strategic initiative under the Critical Raw Materials Act (CRMA). This decision aims to re-establish magnesium production within the EU for the first time in over two decades. Verde Magnesium will build an integrated mining and processing facility in Budureasa, Bihor County.

Currently, the EU imports 97% of its magnesium metal from China, creating significant supply risk. As a result, the EU seeks to diversify sourcing and enhance resilience through domestic production. Verde’s project aligns with this goal and will benefit from fast-tracked permitting and regulatory support.

Production Timeline and Investment Outlook

Verde Magnesium expects to begin commercial operations by the end of 2028. Initial production will range from 15,000 to 20,000 t/yr, increasing to 30,000 t/yr in 2030. By 2036, the facility aims to reach peak output of 90,000 t/yr.

However, earlier targets were delayed due to licensing issues with Romania’s National Agency for Mineral Resources. The company finally secured the mining licence in April, allowing development to move forward. Though CRMA designation does not guarantee EU funding, it may unlock institutional investment.

Strategic Material for EU Industry

Magnesium is vital for alloying in aluminium, automotive, aerospace, and defence applications. Its inclusion on the CRMA’s strategic materials list highlights its industrial importance. Verde CEO Alexandru Rosu said the site will become a low-carbon hub for extraction, processing, and recycling in Europe.

France’s Pechiney operated the EU’s last magnesium facility until Chinese imports forced its closure in 2001. Verde’s return could reduce reliance on volatile global supply chains and restore European production capability.

The Metalnomist Commentary

Verde Magnesium’s CRMA status reflects Europe’s intent to de-risk supply chains and revive critical material independence. With high demand across strategic sectors, restoring EU-based magnesium production is both a geopolitical and industrial imperative.

Verde Magnesium low-CO2 magnesium pilot advances EU supply security

Verde Magnesium

Verde Magnesium low-CO2 magnesium pilot delivered 99.9% purity with a 1–3 t CO₂/t footprint. The Verde Magnesium low-CO2 magnesium pilot processed Budureasa brucite and generated valuable by-products. As a result, Verde Magnesium low-CO2 magnesium progress positions Romania in Europe’s strategic metals push.

Pilot results and product qualification

The pilot produced 99.9% magnesium metal from Romanian brucite ore. By-products included Al-Mg spinel and calcium aluminate for steel and refractories. Meanwhile, Verde has begun pre-certification with a tier-one EU auto supplier. Pilot ingots will support downstream qualification across Europe and the US.

Scale-up plan and policy tailwinds

Verde is developing a feasibility study for a 30,000 t/yr mine-smelter. The first step is a 500 t/yr pilot smelter by late-2026 to early-2027. Earlier this year, the EU listed the project as strategic, streamlining permits. Therefore, financing, LCA work, and environmental assessments are underway to de-risk execution.

Europe seeks alternatives to Chinese magnesium dominance. EU production ceased in 2001, creating supply vulnerability and price shocks. However, Verde’s pathway, alongside Bosnia’s MFE Magnesium for Europe, could rebuild regional capacity.

The Metalnomist Commentary

If Verde sustains a 1–3 t CO₂/t profile at scale, EU automakers gain a credible low-carbon source. Certification timelines and power pricing will decide cost competitiveness against Chinese supply.

Greenland Resources Malmberg project financing advances Mo-Mg development

Greenland Projects

Greenland Resources Malmberg project financing totals C$11.5mn to accelerate engineering and magnesium metallurgical studies. Greenland Resources Malmberg project financing also supports offtake talks and working capital. The raise follows a 30-year exploitation permit for molybdenum and magnesium, extendable to 50 years. Greenland Resources Malmberg project financing aims to convert permits and partnerships into near-term project readiness.

Funding details and use of proceeds

The company placed 6.7mn shares on 5 August, raising C$10mn. It then sold 1mn shares on 11 August for C$1.5mn. The fresh capital funds engineering, magnesium test work, offtake negotiations, and operations. As a result, technical de-risking should progress in parallel with market outreach.

Permits, offtakes, and market fit

The Malmberg project holds a long-life exploitation permit covering molybdenum and magnesium. Earlier, regulators added magnesium to the draft license in April. Greenland Resources has offtake agreements with Outokumpu and Cogne Acciai Speciali. Therefore, stainless and specialty steel demand can anchor initial volumes.

Molybdenum strengthens steel, cast iron, and superalloys. Meanwhile, magnesium alloys with aluminum and supports die casting. The combined product slate targets diversified end markets. Consequently, the project aligns with European supply security goals and lightweighting trends.

Execution now turns on disciplined studies and commercial validation. Expanded metallurgical data should inform flowsheet selection and product specs. In turn, buyers can refine contract terms and delivery windows. Offtake traction will guide financing structure and construction sequencing.

The Metalnomist Commentary

This raise is modest but well-timed. With permits, named offtakers, and focused studies, Malmberg can move up the readiness curve. Watch for metallurgy results and binding offtakes as the next catalysts.

Greenland Resources Grant Supports Malmbjerg Molybdenum Processing Study

Greenland Resources

Greenland Resources grant approval from Natural Resources Canada could advance technical work on the Malmbjerg molybdenum project in east Greenland. The Canadian federal department has conditionally approved C$7mn for the company to evaluate processing options and byproduct recovery potential.

The Greenland Resources grant will support feasibility work for primary molybdenum processing. It will also assess whether magnesium and rare earths can be recovered as byproducts, potentially improving the project’s value and strategic relevance.

The Malmbjerg project already holds a 30-year exploitation permit for molybdenum and magnesium. However, the project has not yet entered commercial production, making technical validation and financing support important steps before development can move forward.

Malmbjerg Could Add Strategic Molybdenum Supply

Malmbjerg is positioned as a primary molybdenum project, which gives it importance beyond normal base metals development. Molybdenum is used in stainless steel, specialty steel, high-performance alloys, energy infrastructure, and industrial equipment that require strength, corrosion resistance, and high-temperature performance.

The Greenland Resources grant therefore supports a project linked directly to advanced manufacturing and steel supply chains. In a market where many molybdenum units come as byproducts from copper operations, primary molybdenum projects can offer a more direct supply source.

Greenland Resources has already signed long-term supply agreements with European industrial customers. These include Outokumpu, Hempel Metallurgical, Cogne Acciai Speciali, and Georgsmarienhütte Holding, showing downstream interest from stainless steel, specialty steel, and metal supply companies.

Byproduct Recovery Could Strengthen Project Economics

The study of magnesium and rare earths byproduct recovery could increase the strategic value of Malmbjerg. If technically and economically viable, these materials could broaden the project’s role within critical minerals supply chains.

Magnesium is important for lightweight alloys, aluminium alloying, steel desulphurisation, and industrial applications. Rare earths are central to permanent magnets, advanced electronics, defence systems, and energy transition technologies.

The Greenland Resources grant also reflects Canada’s interest in supporting critical mineral development beyond its domestic borders when projects can strengthen allied supply chains. Greenland’s location and resource base make it increasingly relevant to North American and European raw materials security.

The Metalnomist Commentary

Malmbjerg’s importance lies in its potential to link Arctic resource development with European alloy and steel demand. The next test is whether processing studies can turn molybdenum, magnesium, and rare earth potential into a bankable supply-chain project.

IBAT Begins Lithium Production via DLE Plant in Utah

International Battery Metals (IBAT) has commenced commercial-scale lithium production using a separation method touted as a greener alternative crucial for electric vehicle (EV) batteries. The Houston-based company announced on Thursday that it has started operations at its modular plant for direct lithium extraction (DLE), producing lithium chloride from a brine by-product of magnesium production.

The brine feedstock is provided by US Magnesium, following an agreement made in May to position the facility near its operations outside Salt Lake City, Utah. Under the terms of the agreement, IBAT will supply US Magnesium with lithium chloride, which will then be refined into battery-grade lithium carbonate. IBAT will earn royalties from the lithium sales and rental fees for its proprietary equipment.

DLE is promoted as a more cost-effective and environmentally friendly alternative to traditional brine mining methods, which rely on extensive evaporation pools that consume large amounts of water and yield only 20-40 percent lithium recovery on average, raising both ecological and profitability concerns.

IBAT claims its technology can extract over 97 percent of available lithium from brine sources and recycle up to 98 percent of the water used. The portable 5,000 metric tonne per year DLE plant can reach production within 18 months from the start of construction, according to the company.

China Copper Trading Slows as Invoice Crackdown Hits Market Liquidity

China Copper

China copper trading has slowed as tax authorities intensify enforcement against circular invoicing and fraudulent metals trades. The crackdown is targeting the so-called invoice-driven economy, where companies use invoices to support fabricated or partly fabricated transactions.

China copper trading has been affected more than other non-ferrous metals because copper carries strong financial attributes. Many traders use copper invoices to support bank financing, revenue reporting and liquidity management.

China copper trading is now facing tighter scrutiny after eight government bodies, including the State Taxation Administration, held a meeting in Beijing on 16 April to co-ordinate action against tax-related crimes. Since then, inspections of trading firms have intensified nationwide.

The enforcement push is not designed to restrict normal physical trade. However, it can still reduce market activity if companies lose invoice quotas or if compliant sales become harder to process.

Copper Finance Channels Face Tighter Tax Scrutiny

The invoice-driven economy refers to irregular practices built around fapiao issuance. These can include fake transactions, inflated trade flows, tax rebate abuse and revenue manipulation.

Some companies have used these invoices to improve apparent financial performance. Others have used them to support bank loans or bond issuance by showing higher trading volumes.

Tax authorities are now cutting invoice quotas for companies that issue non-compliant invoices. In severe cases, quotas can be reduced to zero, effectively stopping firms from conducting trading activity.

This directly affects metals traders. Without sufficient invoice capacity, even legitimate transactions may be delayed or cancelled because invoices are required to complete normal commercial sales.

Copper is especially exposed because it is often used in financing structures. Its high value, liquidity and benchmark status make it attractive for invoice-backed funding.
As inspections spread, some downstream copper consumers are shifting away from traders and buying spot material directly from smelters. This reduces the role of intermediary trading firms in the physical market.

Traders’ spot offers have become firmer because sales volumes have fallen sharply. This does not necessarily mean physical copper demand is stronger. It reflects tighter trading channels and reduced willingness to sell under compliance pressure.

The crackdown could also reduce spot availability. If traders cannot issue enough invoices, some material may not move even when buyers and sellers are willing to transact.

Export Controls and Compliance Pressure Spread Beyond Copper

The compliance push is not limited to copper. China’s customs authorities have also increased enforcement against companies without export qualifications that forge or illegally purchase customs clearance certificates.

Magnesium traders said this enforcement is expected to reduce lower-priced material in the export market. Illegal magnesium exports typically evade value-added tax and income tax, allowing prices to sit $80-100/t below authorised trade.

The authorities began targeting these violations last October. The latest enforcement suggests China is tightening control over both domestic invoicing and export documentation.

This matters for industrial metals because trade flows often depend on paperwork as much as physical availability. Invoices, tax records, customs certificates and export qualifications are now becoming more important parts of market access.

For compliant producers and traders, stricter enforcement could improve market discipline. It may reduce unfair competition from firms using illegal invoicing or tax evasion to offer lower prices.

For buyers, the impact may be more complicated. Reduced informal trade can tighten availability, lift transaction costs and push more demand toward qualified suppliers.
The broader market meaning is clear. China’s metals trade is becoming more compliance-driven. This may reduce speculative or financing-led activity, but it can also lower liquidity in the short term.

For copper, the immediate effect is weaker trading activity and a shift toward smelter-direct purchasing. For magnesium and other export markets, the effect may be less low-priced material and tighter documentation requirements.

The Metalnomist Commentary

China’s invoice crackdown shows that metals liquidity can tighten even without a physical supply shock. Copper’s financing role makes it especially vulnerable, and the wider compliance push could reshape how traders, smelters and exporters manage metal flows.

EU Russia Sanctions Package Tightens Shadow Fleet and Metals Trade Controls

EU, Russia

EU Russia sanctions package measures have formally expanded as Brussels adds new pressure on Russia’s oil logistics, maritime services and raw materials trade. The 20th sanctions package adds 46 vessels to the EU’s shadow fleet list and creates the legal basis for a future ban on maritime services linked to Russian crude and oil product shipments.

The EU Russia sanctions package brings the total number of designated shadow fleet tankers to 632. These vessels face port access bans and restrictions on a broad range of maritime transport services.

The EU Russia sanctions package aims to close loopholes around the G7 oil price cap. Brussels is targeting vessels, ports, terminals, tanker sales and service providers that may help Russia move crude and oil products outside the sanctioned framework.

The package also expands trade restrictions to several raw materials and metals, including aluminium products, silicon, lithium oxide, cobalt, molybdenum, magnesium, platinum, rhodium and iridium. This widens the impact from energy sanctions into industrial supply chains.

Shadow Fleet Measures Push Sanctions Deeper Into Maritime Logistics

The main focus of the package is Russia’s shadow fleet. These tankers have become central to Moscow’s efforts to move crude and products while avoiding price-cap restrictions and western maritime services controls.

The EU has now banned transactions with the Russian ports of Murmansk and Tuapse, as well as the oil terminal at Karimun in Indonesia. Brussels said these locations are being used to bypass the price cap.

Earlier sanctions already covered Ust-Luga, Primorsk and Novorossiysk. The wider port and terminal coverage shows that the EU is moving from targeting ships alone to targeting the infrastructure that supports Russian oil flows.

Georgia’s Kulevi port was not included after EU officials said they received strong commitments. This shows that Brussels is also using sanctions pressure to influence third-country port behaviour.

The package introduces mandatory due diligence and a “no-Russia” clause for tanker sales. This is intended to prevent vessels from moving into Russian-linked fleets through resale channels.

The EU has also prohibited maintenance and other services for Russian LNG tankers and icebreakers. From January 2027, LNG terminal services to Russian entities, or entities controlled by Russian nationals or operators, will also become illegal.

The future maritime services ban is especially important. Under current rules, shipping, insurance and other services are still allowed for Russian oil shipments sold at or below the G7 price cap.

The new framework prepares the legal basis for a stricter system. The EU plans to co-ordinate any future ban with G7 partners and other price-cap countries.

This would mark a significant escalation. A broader maritime services ban could reduce Russia’s ability to use western-linked insurance, shipping support, technical services and terminal access even when cargoes claim price-cap compliance.

Metals Restrictions Extend Pressure Into Industrial Supply Chains

The sanctions package also expands pressure beyond oil and gas. It adds 120 individuals and entities to the EU sanctions list, including 36 designations linked to the upstream and downstream oil sector.

Some listings involve entities based in third countries. This reflects the EU’s increasing focus on sanctions circumvention through non-EU jurisdictions.

The trade measures are also important for metals and industrial materials. The EU introduced a yearly ammonia import quota of 688,000t and widened import restrictions to additional raw materials and metals.

The restricted materials include steel, aluminium products, silicon, salt, calcium oxide, rubber, lithium oxide, cobalt, molybdenum, magnesium, platinum, rhodium and iridium.

This matters because Russia remains connected to several industrial raw material flows. Even when volumes are not dominant, sanctions can affect procurement, compliance, documentation and alternative sourcing decisions.

Platinum, rhodium and iridium are particularly sensitive because they support automotive catalysts, hydrogen technologies, electronics, chemicals and high-performance industrial applications. Any restrictions on Russian-linked flows could increase attention on South African, recycled and alternative supply.

Cobalt, molybdenum and magnesium restrictions also carry strategic relevance. These materials feed batteries, superalloys, specialty steels, aerospace, automotive and defence-related supply chains.

Aluminium product restrictions may add another layer of complexity to European aluminium procurement, especially as the market already faces higher premiums, energy cost pressure and disrupted trade flows.

The package was adopted after Russian pipeline crude flows resumed to Hungary and Slovakia through the Druzhba system. That restart removed a political obstacle that had delayed approval.

The EU also formally adopted a €90bn loan package for Ukraine. Disbursements could begin next month to support urgent budgetary and defence needs in 2026 and 2027.

The combined measures show that Brussels is linking sanctions enforcement, energy security, Ukraine financing and industrial trade policy more tightly. Russia sanctions are no longer limited to direct oil and gas restrictions. They now reach vessels, ports, financing, raw materials, metals and third-country trade channels.

The Metalnomist Commentary

The 20th EU Russia sanctions package shows that enforcement is moving from headline bans toward logistics, ports and material flows. For metals buyers, the key risk is not only direct Russian origin, but the growing compliance burden around third-country routing, documentation and restricted raw materials.

US-Australia rare earths investment targets critical minerals security

US-Australia rare earths Investment

The US-Australia rare earths investment is emerging as a flagship effort to reduce reliance on China’s critical minerals supply. Under a new bilateral deal, Washington and Canberra will each co-invest at least $1bn in priority projects over the next six months. As a result, the US-Australia rare earths investment will anchor an $8.5bn pipeline of mines, refineries and midstream assets across both countries.

US-Australia rare earths investment anchors $8.5bn project pipeline

The US-Australia rare earths investment centres on co-funding processing and refining capacity rather than just upstream mining. Initial commitments include around $200mn of support for a 100 t/yr gallium plant in Western Australia, adjacent to Alcoa’s Wagerup alumina refinery. Canberra has also approved a fresh $100mn equity injection into Arafura Rare Earths’ Nolans project, taking total state support for that asset above A$1bn.

Meanwhile, the US Export-Import Bank has signalled potential co-funding of up to $2.2bn for seven Australian developers. These include Northern Minerals, Graphinex, La Trobe Magnesium and VHM, which have received non-binding letters of intent. Together, these facilities could accelerate timelines for rare earths, gallium, graphite, magnesium and other strategic materials. The US-Australia rare earths investment therefore acts as a capital de-risking tool for projects that struggle with high upfront costs.

US-Australia rare earths investment reshapes pricing, permitting and project risk

The agreement also extends beyond direct finance, targeting structural barriers around pricing and permitting. Both governments will work through a new US-Australia Critical Minerals Supply Security Response Group to identify priority materials and address supply vulnerabilities. They have pledged to fast-track approvals and to explore pricing frameworks, including floors, to reduce price opacity and volatility in critical mineral markets.

Industry leaders argue that this support tackles a key bottleneck. Australian developers often face weak bankability because contract prices for rare earths and battery metals remain highly volatile. At the IMARC conference in Sydney, Arafura’s chief financial officer highlighted how the deal signals serious government commitment to resilient value chains. Likewise, Critical Minerals Queensland noted that price instability has historically discouraged investment, even when project geology is attractive.

The US-Australia rare earths investment also dovetails with domestic regulatory reforms. Western Australia recently released draft permitting changes that would enable a state “co-ordinator general” to shepherd priority projects through multiple agencies. This institutional support could shorten timelines for mines, refineries and midstream facilities feeding the bilateral critical minerals alliance. In parallel, industry groups such as the Minerals Council of Australia say the deal underscores Australia’s strategic role in future-facing sectors.

The Metalnomist Commentary

This agreement marks a shift from rhetoric to structured capital in the critical minerals space, with clear project pipelines and named beneficiaries. If pricing floors and permitting acceleration materialise, Australia could move from “potential supplier” to cornerstone hub for rare earths and allied materials. The next test will be whether these public commitments crowd in sufficient private capital to deliver bankable, on-time projects at scale.

Pursuit Aerospace Aluminum Castings Acquisition Expands Light-Alloy Capabilities

Pursuit Aerospace

Pursuit Aerospace aluminum castings acquisition broadens the company’s portfolio and footprint. The deal adds aluminum and magnesium castings through Aeromet International. Pursuit Aerospace aluminum castings acquisition follows June’s Larson Forgings purchase. Together they extend forgings, rings, and light-alloy components. Pursuit Aerospace aluminum castings acquisition strengthens engine, structures, and systems content for Boeing and Airbus programs.

How Aeromet strengthens Pursuit’s product and service stack

Aeromet supplies aluminum and magnesium castings via sand and investment processes. It also offers machining, heat treatment, and sub-assembly services. Therefore, Pursuit gains vertical scope from casting to finished assemblies. The target operates three UK sites, expanding Pursuit’s global reach. Customers include Boeing, Airbus, and leading defense primes. Parts span heat exchangers, exit doors, winglets, and fuel connectors.

Strategic fit after Larson Forgings and industry outlook

June’s Larson Forgings deal added open-die forgings and rolled rings. Aeromet now fills the light-alloy casting capability gap. As a result, Pursuit can bundle forgings, rings, and castings. This should improve win rates on multi-process packages. Meanwhile, aerospace backlogs support multi-year demand. Qualification depth, yield, and delivery discipline will decide margin capture.

The Metalnomist Commentary

Pursuit is building a balanced aero metals platform across castings and forgings. Execution now hinges on integrating UK operations and synchronizing NADCAP flows. Watch on-time delivery and cross-sell traction on Airbus and Boeing platforms.

EU Selects 47 Strategic Raw Materials Projects Under CRMA

EU

New Projects Aim to Boost European Raw Material Independence

The European Commission has announced 47 strategic raw materials projects across 13 EU countries under the Critical Raw Materials Act. These initiatives are part of the EU’s push to reduce foreign dependence and strengthen domestic supply chains by 2030.

The selected projects span extraction, processing, recycling, and substitution of key metals like lithium, nickel, and graphite. In total, they are expected to require €22.5 billion ($24.3 billion) in capital investment, with an accelerated permitting timeline.

Lithium and Nickel Dominate Strategic Focus

Among the 47 projects, 22 are focused on lithium, 12 on nickel, and 10 on cobalt—metals vital for green energy transitions. Projects also cover graphite, manganese, tungsten, and magnesium, all critical for battery, defense, and digital industries. The EU has set targets to meet 10% of its raw material extraction and 40% of processing needs internally by 2030. Savannah Resources’ Barroso lithium project in Portugal is among the featured initiatives with strategic classification status.

Stockpiling and Geopolitical Implications

The Commission is now gathering data on national stockpiles to assess safe storage levels for critical materials across the bloc. An EU raw materials center may coordinate stockpiling efforts starting next year, aligning with global practices in the US and China.

Given global geopolitical shifts, including US leadership changes, the EU is intensifying its focus on material security strategies. Officials stress that European clean tech independence should not lead to new forms of dependency—especially on China.

The Metalnomist Commentary

The EU's selection of 47 strategic raw materials projects signals a shift toward regional autonomy in critical mineral supply chains. If executed on time, the CRMA framework could reshape Europe's role in the global energy and defense materials landscape. However, execution speed and political cohesion across member states will ultimately determine the strategy’s success.

Constellium Recycles Aluminum from Aircraft for New Aerospace Use

Constellium Recycling

Constellium Advances Circular Economy in Aviation

French aluminum producer Constellium has successfully recycled aluminum scrap from retired commercial aircraft into new aerospace-grade materials. The company announced that the process produced 2024 aluminum alloy that meets strict performance standards for new plane manufacturing. This milestone strengthens efforts to build a circular economy in aviation, reducing reliance on emissions-intensive primary aluminum.

Constellium partnered with Tarmac Aerosave, an aircraft dismantling company formed by Airbus, Safran, and partners, to carry out the trial. The company now plans to scale operations and improve throughput rates, extending the recycling process to additional alloys used in aircraft construction.

Recycled Aerospace Alloys Meet Industry Demands

The 2024 aluminum alloy produced in the project is widely used in fuselage skins, wing structures, and engine nacelle coverings. Its composition includes 4.4% copper, 1.5% magnesium, and 0.6% manganese, with the balance aluminum. These properties make it essential for aerospace applications requiring strength and durability.

Historically, recycling aerospace-grade alloys posed challenges because coatings and attachments distorted the chemistry during remelting. Constellium claims its new process overcomes these barriers, making aircraft aluminum recycling technically and commercially feasible. As a result, the company’s innovation could reshape supply chains by reducing waste and lowering carbon emissions.

The Metalnomist Commentary

Constellium’s breakthrough highlights a critical step toward decarbonizing the aerospace sector. By demonstrating that high-performance alloys can be recycled without compromising quality, the company positions itself as a leader in sustainable metals innovation. Scaling this process could significantly cut emissions and create a new standard for closed-loop manufacturing in aviation.

China’s Titanium Sponge Exports Surge While Imports Decline in 2023

Titanium Sponge

China’s Titanium sponge exports saw a significant increase during January-September 2023, driven by heightened demand from countries like the United States, Japan, and South Korea amid the ongoing Russia-Ukraine conflict. However, imports into China decreased due to ample domestic availability and declining local prices, which remained highly competitive compared to international markets.

Export Trends: Rising Demand from the U.S. and Japan

During the first nine months of 2023, China exported 4,362 tons of Titanium sponge, reflecting a 24% increase compared to the 3,516 tons shipped during the same period in 2022, according to customs data. This surge was largely fueled by reduced global spot supplies following the start of the Russia-Ukraine conflict in February 2022. Russia and Ukraine are significant producers of Titanium sponge, alongside other nations such as Kazakhstan, Saudi Arabia, and Japan.

In September 2023, exports totaled 567 tons, a 38% rise from the 411 tons shipped in September 2022. However, this was a 24% decline from the 744 tons exported in August. Key export destinations included Japan (224 tons), the United States (100 tons), and Sweden (60 tons). A notable contract by a Yunnan-based producer to supply 1,000 tons of 99.7% sponge to a U.S. buyer, with shipments scheduled for May 2025, highlights China’s growing footprint in the global Titanium sponge market.

Import Decline: Sufficient Domestic Supply and Competitive Pricing

China’s Titanium sponge imports fell by 25%, with only 100.4 tons brought in during January-September 2023, compared to 133.7 tons in the same period in 2022. The decline is attributed to adequate domestic availability and weaker prices in the local market. The average price for 99.7% grade Titanium sponge in China during the period was ¥50,712 per ton (approximately $7.10 per kg), significantly lower than the European average of $11.45 per kg.

Domestic Market Stability Amid Thinner Margins

Despite rising exports, China’s domestic Titanium sponge market remains stable, though profit margins have thinned, with some producers operating at a loss. Prices for 99.7% grade sponge as of early November were assessed at ¥43,000-44,000 per ton ex-works, the lowest levels since February 2016. Similarly, 99.6% grade sponge was priced at ¥42,000-43,000 per ton ex-works.

Producers in regions such as Panzhihua have also shifted focus to export markets, including India and Europe, to compensate for declining domestic profitability. Notably, the continued suspension of production by Ukraine’s Zaporozhe Titanium and Magnesium (ZTMC) since February 2022 has further solidified China’s position as a key supplier to international markets.

Outlook: Competitive Advantage Amid Global Supply Constraints

China’s robust export growth underscores its critical role in the global Titanium sponge market, especially in light of supply disruptions caused by geopolitical factors. Competitive pricing and stable domestic production ensure that China remains a leading supplier, even as other producers face challenges in meeting global demand.