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 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.

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.

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.

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.

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.

China's Antimony Market Faces Weak Demand but Tight Supply in 2025

China antimony

Antimony Prices to Remain High Amid Supply Constraints

China's antimony market is bracing for a dual challenge in 2025: a decline in demand driven by export restrictions, substitution efforts, and slowing solar glass industry growth, coupled with persistent supply tightness due to global resource depletion. These dynamics suggest that while demand-side pressures may lead to short-term price fluctuations, antimony prices are unlikely to drop significantly from their recent record highs.

Export Controls Limit Overseas Sales

Since late August 2024, antimony prices in China’s domestic market have softened slightly, falling from approximately Yn164,000/t to Yn140,000-142,000/t ex-works for 99.65% grade antimony metal. This decline follows export restrictions that have curbed overseas demand, forcing more material into the domestic market.

Market observers remain cautious about additional trade barriers, as critical minerals like antimony are increasingly entangled in geopolitical tensions. In 2021-2022, China produced 20,000t of antimony metal and exported 2,700t, while antimony trioxide production reached 29,600t, with 12,400t exported.

Substitution Pressures Threaten Antimony Demand

Antimony's dominant role in flame-retardant applications has long been challenged by substitute materials such as tin dioxide, cerium dioxide, magnesium hydroxide, and certain rare earth compounds. The World Health Organization (WHO) classifies antimony trioxide as a probable carcinogen, prompting some European countries to restrict its use in consumer products like toys, electronics, and cosmetics.

With antimony prices still elevated—hovering well above Yn90,000/t, the level many buyers in the flame-retardant industry consider viable—substitution pressures are expected to rise. However, complete replacement is unlikely, as antimony-bromine flame retardants remain unique in preserving plastic structure, unlike most alternatives. Plastic manufacturers are likely to continue using antimony-bromine compounds as long as bromine prices remain low.

Solar Glass Industry Slowdown May Curb Demand

The solar glass sector, a key growth driver of antimony demand, has been a major consumer of sodium pyroantimonate, a refining agent. Consumption surged from 22,000t in 2022 to 30,000t in 2023, but demand has slowed since July 2024 due to overcapacity concerns.

In November 2024, the Chinese government tightened photovoltaic manufacturing regulations, shifting the focus from rapid expansion to technological innovation and quality improvements. This policy change is expected to curb antimony demand from the photovoltaic (PV) industry in 2025.

Tight Concentrate Supply to Prevent Major Price Declines

Despite weakened demand, China's antimony prices are unlikely to return to 2022-2023 levels due to ongoing supply constraints. Since November 2024, Chinese antimony metal producers have been reluctant to cut prices, citing concentrate shortages as their primary concern.

To compensate for declining domestic reserves, China increased antimony concentrate imports by 44% year-on-year, reaching 45,136t from January to October 2024, according to customs data. However, low metal content (20-30%) in these imports has limited their effectiveness.

China’s annual metal content production of antimony fell from 6,000-8,500t pre-2020 to 3,500-4,100t in 2021-2023, reflecting severe resource depletion. 2024 production is estimated at 4,500t, with no significant rebound expected in 2025.

Conclusion

China's antimony market is caught between declining demand and supply shortages. While export restrictions, substitution risks, and a slowdown in solar glass production threaten consumption, resource depletion and low-grade imports will keep supplies constrained. As a result, antimony prices are expected to remain elevated despite short-term volatility.

Ukraine’s Titanium Industry Moves Towards Privatization with $95.6 Million UMCC Sale

UMCC

In a major step in Ukraine's titanium sector privatization, the State Property Fund of Ukraine auctioned United Mining and Chemicals Company (UMCC) for 3.94 billion UAH (approximately $95.6 million). Tsemin Ukraine acquired UMCC, pending approval from Ukraine's Cabinet of Ministers. This sale is part of Ukraine’s broader effort to privatize key titanium assets, aiming to enhance the sector’s productivity and independence amid ongoing economic challenges.

The sale agreement stipulates that Tsemin Ukraine must maintain UMCC’s operations, invest a minimum of 400 million UAH in technical modernization, and resolve any outstanding debts, including wages. As one of the world’s largest titanium producers, UMCC manages the Irshansk and Vilnohirsk Mining and Processing Plants, producing over 500,000 metric tonnes annually. The company has recently strengthened its European market position by resuming ilmenite concentrate shipments, contributing to a more stable supply of titanium materials within the continent.

VSMPO Titan and ZTMC Also Slated for Privatization

Alongside UMCC, Ukraine is preparing to privatize additional titanium-related assets, including VSMPO Titan Ukraine and the Zaporizhzhia Titanium-Magnesium Combine (ZTMC). VSMPO Titan Ukraine, which specializes in seamless titanium pipes, was seized from Russian oligarch Mikhail Shelkov in 2023. Meanwhile, ZTMC, under state control since 2020 after the government took it from Group DF owned by Dmitry Firtash, is positioned for new investment and modernization through privatization efforts.

The State Property Fund is also evaluating options for the Zaporizhzhia Titanium Institute after an initial auction failed to secure a buyer. This focus on privatizing titanium assets underscores Ukraine’s commitment to revitalize and safeguard its strategic metal production industry amid heightened demand and geopolitical pressures.

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.

EU Launches Safeguard Investigation into Manganese, Silicon Alloys Imports

The European Commission

The European Commission has initiated a safeguard investigation into the import of manganese and silicon-based alloys and silicon metal, following concerns about the erosion of market share for EU producers. The probe, launched on December 19, focuses on a range of materials, including silicon metal, ferro-manganese, ferro-silicon, ferro-silico-manganese, ferro-silico-magnesium, and calcium-silicon.

The investigation, driven by industry body Euroalliages and certain member states, comes in response to a surge in global production capacity and rising imports, particularly from China, which has significantly impacted EU producers. Euroalliages Secretary-General Bob Lambrechts highlighted that China's excess production capacity could meet the EU’s demand multiple times over, raising alarm over increasing import shares.

Global spare production capacity for these materials exceeds 21 million tons per year, with another 13 million tons per year expected to be added. Meanwhile, declining demand in the EU’s steel and aluminium industries leaves the region unable to absorb these volumes.

Timeline and Possible Measures

The commission will accept comments, evidence, and information from stakeholders within 21 days of the announcement. If safeguard measures are deemed necessary, they could be implemented within nine months, with an optional two-month extension for exceptional circumstances.

In cases of urgent harm, the commission may impose provisional measures for up to 200 days while continuing its analysis. These actions are critical for stabilizing the market and protecting EU producers from potential dumping and unsustainable competition.

Strategic Materials and Trade Policies

Euroalliages emphasized the strategic importance of manganese, silicon alloys, and related materials to the EU’s industrial base. Lambrechts noted, “Times have changed, and you cannot primarily rely on countries that you cannot be sure will continue to supply.”

The investigation is part of a broader effort to strengthen the EU’s industrial value chain against external pressures and ensure long-term competitiveness. Lambrechts also underscored that this effort goes beyond traditional anti-dumping and anti-subsidy measures, signaling a more comprehensive approach to trade policy.

The Risk of Import Surges

The commission warned of potential imminent increases in imports due to trade protectionism measures in external countries, which could divert more volumes to the EU. Addressing these risks is crucial to preserving the EU’s industrial capacity and reducing reliance on unstable supply chains.