Supply Chain

Magnesium Supply Chain: From Mine to Market

China produces ~85% of global primary magnesium using the Pidgeon process, a thermal reduction method that heats dolomite with ferrosilicon in retorts. This process is concentrated in Shaanxi and Shanxi provinces and is extremely energy-intensive. Israel (Dead Sea Magnesium) and the US (US Magnesium) are the only other significant primary producers, using electrolytic processes. The extreme Chinese concentration creates recurring supply crises: the 2021 energy policy-driven cuts nearly halted European automotive production due to magnesium alloy shortages. Major consuming sectors include aluminum alloying (~40%), die casting (~30%), and steel desulfurization (~15%). Recycled magnesium from manufacturing scrap and post-consumer sources provides ~33% of supply.

Production Geography

Global Magnesium production is led by China, which accounts for approximately 85% of world output, followed by Russia. The full list of major producing nations includes China, Russia, Israel, Kazakhstan, Turkey. This geographic concentration means that disruptions in key producing regions can have outsized impacts on global supply and pricing.

Extraction Methods

Magnesium is extracted using the following primary methods:

• Electrolytic reduction (seawater/brine)
• Pidgeon process (thermal reduction of dolomite)
• Open-pit mining (magnesite)

Processing and Intermediate Products

Magnesium is primarily sourced from Dolomite (CaMg(CO3)2), Magnesite (MgCO3), Carnallite (KMgCl3·6H2O), Seawater/brine. After extraction, the raw material undergoes multiple processing steps including beneficiation, chemical treatment, and refining to reach the purity levels required by downstream industries. Typical ore grades range from Various (dolomite/magnesite mining or brine extraction).

Key Supply Chain Participants

The Magnesium supply chain involves these major companies:

Supply Chain Vulnerabilities

Key vulnerabilities in the Magnesium supply chain include concentration of 85% of production in China, limited processing capacity diversification, and long lead times for new mining projects. The high supply risk rating reflects the severity of these concentration risks and the difficulty of rapidly establishing alternative supply sources.