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.

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.

China’s Ruitan Commences Construction of Xinjiang Anode Material Plant

Chinese lithium-ion battery anode material producer Xinjiang Ruitan has officially begun the construction of a major new facility in Khorgos, Xinjiang. The plant is designed to reach a production capacity of 100,000 tons per year (t/yr) of anode materials, with the initial phase set to produce 50,000 t/yr. The first phase of construction commenced on August 28, and Ruitan expects to start production by May of the following year.

Resource Utilization and Market Position

Xinjiang’s rich supply of photovoltaic power and petroleum coke is expected to play a crucial role in supporting the new plant's operations, providing both energy and feedstock. This strategic advantage aligns Ruitan with broader industry trends. In addition to Ruitan, competitor Yuexing is also advancing in Xinjiang, with a new plant in Korla city boasting a capacity of 200,000 t/yr. Yuexing’s operations will utilize resources from local suppliers, including petroleum coke from the Xinjiang Tahe Refining plant and photovoltaic power from Xinjiang Ruibao Qianyuan Power.

Xinjiang Nonferrous in China Begins Lithium Carbonate Production

Lithium Carbonate

Xinjiang Nonferrous Metal, a state-owned producer in China, has commenced lithium carbonate production at a facility located in the Hetian area of northwest China's Xinjiang region.

This project, with a designed capacity of 100,000 tons per year for lithium salts, will be developed in two phases. The initial phase includes the production of 30,000 tons per year of lithium carbonate, 30,000 tons per year of lithium hydroxide, and 15,000 tons per year of lithium chloride.

Construction of the first phase began in July of last year, and by the end of May, the company had produced its first batch of qualified products from the 30,000 t/yr lithium carbonate line. The goal for this year is to produce 12,000 tons.

Details regarding the construction timelines and launch dates for the second phase, which will produce 25,000 tons per year of lithium salts, remain undisclosed.

Xinjiang Nonferrous is developing an integrated facility encompassing mining, separation, and processing, with the capacity to process 3 million tons of lithium ore annually to produce 600,000 tons of high-grade lithium concentrate. The company plans to commence mining operations in the coming months, aiming for an annual production of 130,000 tons of concentrate this year.

In 2019, the company acquired exploration rights for rare metals in the Hetian area for 2 billion yuan ($276 million). The area's measured and controlled lithium ore resources total 50 million tons, equivalent to 700,000 tons of lithium oxide. Resource estimates are expected to increase to 100 million tons, equivalent to 1.5 million tons of lithium oxide, upon completion of exploration.

Chinese lithium producers are ramping up production both domestically and internationally to meet strong demand from the electric vehicle battery industry. Another domestic lithium producer, Hunan Anneng Ganfeng, is also set to commence production at a 25,000 t/yr lithium carbonate plant in October.

The rapid increase in output has outpaced demand growth, leading to a decline in prices. On June 19, Metalnomist assessed prices for 99.5% grade lithium carbonate at 94,500-99,500 yuan per ton ex-works, down by over 80% from their record highs in November 2022. Increased supplies from Qinghai, China's main production hub for lithium extracted from brines, have continued during the warmer summer months. Some major producers may reduce output if prices continue to fall.

China's Tsingshan Partners in Major LFP Project

Collaborative Development in Guizhou

China's largest stainless steel producer, Tsingshan, is teaming up with Huayou Cobalt, a leading battery materials and metals producer, and Huafon, an adipic acid manufacturer, to develop a significant phosphate-coal-chemical integration project in Zhijin county, Guizhou province. The project, valued at 73 billion yuan ($10.3 billion), aims to establish a comprehensive production complex.

The new facility will feature a range of production lines, including 1.5 million tons per year of iron phosphate, 800,000 tons per year of lithium iron phosphate (LFP), and 1 million tons per year of dimethyl carbonate. Additionally, it will produce 800,000 tons per year of synthesis ammonia, 500,000 tons per year of methanol from coke oven gas, and 5 million tons per year of coking. Zhijin county, known for its rich mineral resources, is an attractive site due to its coal reserves exceeding 15 billion tons and phosphate rock reserves nearing 3.5 billion tons.

Industry Trends and Government Regulations

The growing demand for LFP materials, driven by the electric vehicle sector, has led many Chinese firms to expand their capacities. For instance, in August, CATL, China's largest power battery manufacturer, announced plans to collaborate with Jiangxi Shenghua New Material on a new plant. However, concerns about potential oversupply have prompted the Chinese government to implement measures to curb overcapacity and encourage technological advancements. Xinjiang International Industry's decision to terminate its LFP energy storage battery project in June reflects these regulatory pressures.

China Plans to Boost Domestic Copper Resources and Scrap Usage by 2027

China Copper Resources

The country's strategy focuses on expanding copper production and enhancing secondary material utilization.

China has announced plans to increase its domestic copper resources by 5-10% by 2027, along with a significant push to boost the use of secondary materials such as copper scrap. According to a February 11th statement from China’s Ministry of Industry and Information Technology (MIIT), the country will focus on expanding copper exploration and production in several key regions. These efforts align with China’s broader strategy to enhance its copper supply chain and reduce dependency on external sources.

Increased Domestic Copper Exploration and Smelting Projects

As part of its initiative, China will promote exploration in regions such as Tibet, Xinjiang, Yunnan, and Heilongjiang provinces. The country has already made substantial progress in discovering new copper resources, with over 20 million tonnes of new copper found in the Qinghai-Tibet Plateau since 2021. This is double the quantity discovered during the 2016-2020 period. To further boost copper production, China plans to develop new copper mines in these regions and integrate new smelting projects with concentrate production facilities. These projects are expected to play a key role in meeting the country’s growing demand for refined copper.

Boosting Copper Scrap Utilization

Another significant aspect of China’s strategy is increasing the use of copper scrap. Copper smelters will be encouraged to use more secondary copper, which has already become a major feedstock in the production of refined copper. In 2023, more than 31% of China's refined copper came from scrap, according to the China Nonferrous Metals Industry Association (CNMIA). To support this, the government plans to back the construction of new copper scrap recycling facilities and increase imports of copper scrap. In 2024, China’s copper scrap imports rose by 13%, reaching over 2.25 million tonnes, as smelters shifted to more cost-effective scrap rather than concentrates due to higher concentrate prices.

Global Copper Supply and Smelting Capacity

China’s increased demand for copper concentrate, along with the country’s focus on smelting capacity expansions, is expected to tighten global copper concentrate supply. This supply crunch has already led to a decline in treatment and refining charges (TC/RCs) since 2024. Market participants suggest that smelting capacity expansions may outpace new copper mine projects, contributing to continued global supply tightness in 2025.

Conclusion

China’s push to increase domestic copper resources and enhance the use of secondary materials, such as copper scrap, reflects a strategic move to secure its position in the global copper market. With growing demand for refined copper and a constrained global supply of copper concentrates, the country’s efforts to expand production capacity and increase recycling will be essential to meeting future copper needs.

Global Battery Expansion Set to Propel Anode Material Demand

Battery Anode Materials

NEV Growth and Energy Storage Boom Drive Anode Market Outlook

Rapid growth in the global battery industry is poised to boost long-term demand for anode materials and feedstocks, according to panelists at the 2024 Battery and Anode Summit in Changzhou, Jiangsu province. This demand surge reflects ongoing expansion in new energy vehicles (NEVs), energy storage systems, and consumer electronics.

Battery and Anode Output Set for Major Expansion

Global battery output is expected to reach 1,852GWh in 2025, while anode material production may hit 2.17 million tonnes. By 2028, this figure could exceed 4 million tonnes, according to ICC Sino. China produced 2.12 million tonnes of anode materials in 2024, with domestic demand reaching 1.83 million tonnes. Demand is forecast to rise steadily, reaching 3.4 million tonnes by 2028.

China’s NEV sector continues to lead global momentum, driven by sustained policy support. NEV sales in China rose 36% to 12.87 million units in 2024. Sales are projected to grow to 16 million units in 2025, supported by extended government incentives.

Renewable Energy and Silicon Anodes Add Tailwinds

Energy storage demand is also rising, with major wind and solar infrastructure developments underway in China’s Xinjiang, Gansu, Ningxia, and Inner Mongolia. Dalat county's solar generation saved 680,000 tonnes of coal in 2024 and curbed carbon emissions by 1.65 million tonnes.

Silicon-based anode materials, with energy densities up to 4,000 mAh/g, are seeing significant traction. Shipments are projected to surge from 5,300 tonnes in 2024 to nearly 81,900 tonnes by 2030, according to producer C-One.