Global Magnesium Market - 2025-2032

Global Magnesium Market reached US$ 27.65 billion in 2024 and is expected to reach US$ 42.98 billion by 2032, growing with a CAGR of 5.67% during the forecast period 2025-2032.

The increased demand for magnesium alloys in numerous end-use sectors has resulted in a tremendous expansion in the magnesium market. Magnesium alloys are alloys composed of magnesium with additional metals such as aluminum, zinc, manganese, silicon, copper, rare earth and zirconium. For instance, in September 2023, Baosteel Metal, a Chinese lightweight material company, made an agreement with the Hebei local government to make magnesium alloy industrial park in the city of Henan province, North China.

Magnesium Market Trend

A major trend in the global magnesium market is the resuscitation of local magnesium production in places other than China, with the goal of reducing reliance on Chinese imports and increasing supply chain resilience. Europe is resuming magnesium mining for the first time in over a decade. In 2024, Verde Magnesium, backed by US investor Amerocap, was awarded a mining license in Romania, with intentions to invest US$ 1 billion in a derelict mine near Oradea. This effort seeks to produce 90,000 tons yearly by 2027, covering half of the EU's demands and contributing to Europe's green transformation.

The approach is consistent with broader efforts to obtain crucial raw resources for industries like automotive and aerospace, which rely significantly on magnesium for lightweight aluminum alloys used in automobiles and packaging. By diversifying production sources, regions want to reduce the risks associated with supply disruptions and price volatility in the magnesium market.

Dynamic

Growing Demand for Lightweight Materials

The surge in demand for magnesium alloys in the electric vehicle (EV) and electronics industries, fueled by the global shift toward decarbonization and energy efficiency, is a key driver of the global magnesium market. Magnesium has a density that is 78.5% lower than steel and magnesium alloys are up to 35% lighter than aluminum, greatly lowering the overall weight of components, which is critical for enhancing energy efficiency in EVs and battery-powered systems.

As manufacturers seek to fulfill stricter pollution standards, they are increasingly resorting to magnesium for components such as transmission casings, steering wheels, battery housings and seat frames. Major manufacturers, such as Volkswagen, BMW and Tesla, are already using magnesium alloys into their car layouts to improve range and reduce battery strain.

High Production Costs

The high production costs associated with magnesium extraction and processing are a key barrier to growth in the global magnesium market. Magnesium production is energy-intensive, needing large amounts of electricity, which leads to high operating costs. This pricing aspect may limit magnesium's competitiveness relative to competing materials, thus impeding its widespread adoption in a variety of industries.

The scarcity of magnesium resources presents a concern because the metal is predominantly mined in a few nations, resulting in supply chain weaknesses. For example, in 2019, China became the major producer of magnesium, accounting for 94% of the global export market. This concentration exposes the worldwide supply to disruptions from geopolitical tensions, trade restrictions or manufacturing constraints in these important regions.

Segment Analysis

The global magnesium market is segmented based on product, application, end-user and region.

Rising Strength of Aluminum Alloys Drives the Segment Growth

Aluminum alloys are employed in structural applications because they have the maximum strength. Magnesium is added in amounts ranging from less than 1% to nearly 10%, improving the mechanical properties and corrosion resistance of aluminum alloys. The rising expansion and increased investments in the aluminum packaging industry will fuel demand for aluminum alloys, which are used to create aluminum packaging material.

For example, in July 2020, Showa Aluminum Can Corporation, a can manufacturer, opened its third aluminum can manufacturing facility in Vietnam, with a total plant capacity of 1.3 billion cans annually. Furthermore, the Aluminum Beverages Can Association of India supports the use of aluminum as a packaging material in the country's food industries, rather of plastic and glass.

Geographical Penetration

Expanding Automotive Manufacturing in Asia-Pacific

Asia-Pacific is predicted to increase at the fastest rate during the forecast period. Rapid industrialization and the expansion of the automotive manufacturing base, particularly in China and India, are significant drivers. As the global need to lower vehicle emissions and increase fuel efficiency grows, magnesium alloys are increasingly being used to reduce weight by 30-70% in automotive parts such as gearboxes, steering columns and seating arrangements.

China, the world's largest magnesium producer and user, is a leader in this field, incorporating magnesium into electric car components and lightweight structural applications. Furthermore, government measures that promote electric mobility, such as China's New Energy Vehicle mandate and India's FAME-II scheme, are indirectly raising magnesium demand. Automotive OEMs such as BYD and Tata Motors are looking into magnesium alloys to reduce weight and improve battery performance. The expansion of the region's infrastructure and electronics sectors drives market growth.

Impact of US Tariff

The imposition of US tariffs on Chinese magnesium imports has significantly influenced the global magnesium market. US imposed a 10% tariff on Chinese magnesium imports starting February 4, 2025, raising procurement costs for American importers. This increase has been particularly impactful in sectors like automotive and aerospace, where magnesium is essential for producing lightweight components. The tariffs have diminished the price competitiveness of Chinese magnesium in US market, prompting buyers to seek alternative sources.

For instance, Latrobe Magnesium Limited (LMG) from Australia has capitalized on this shift, as its exports to US are exempt from the new tariffs, enhancing its market position. US tariffs on Chinese magnesium imports have led to higher costs for American importers, benefited alternative suppliers like Australia's LMG, caused supply chain adjustments and influenced global market dynamics, underscoring the interconnected nature of international trade policies and commodity markets.

Competitive Landscape

The major global players in the market include Dead Sea Magnesium Ltd., US Magnesium LLC, Gossan Resources, Wenxi YinGuang Magnesium Industry (Group) Co. Ltd, Latrobe Magnesium, POSCO, RI.MA Group srl, Solikamsk Magnesium Works OAO, Shanxi Wenxi Hongfu Magnesium Co., Ltd. and Taiyuan Tongxiang Magnesium Co., Ltd.

Key Developments

• In February 2023, Western Magnesium Corporation announced its plan to build a new production plant for magnesium metal with an initial annual capacity of 25,000 metric tons and a new R&D center in Nevada.

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