Security of supply, using renewable energy & getting on a pathway to net-zero
are the challenges facing the magnesium industry
Relying on coal-based fossil fuels, Chinese producers brought magnesium technology back some 60 plus years to the highly polluting, energy and labour-intensive Pidgeon process. Even so, China managed to capture over 80-85% of world production within a few short years. As a result, the magnesium supply structure fractured into large free markets supplied almost exclusively by Chinese producers and smaller pockets where punitive tariffs or other barriers protected higher priced regional suppliers.
However, in the post - COVID era, renewable energy, reduced emissions & security of supply have increasingly become the world’s focus. Investment is moving away from assets that are not compatible with the transition to a net-zero world. In response to regional supply monopolies, countries around the world increasingly realize their future prosperity depends on establishing and maintaining resilient, clean critical mineral value chains - magnesium now appears on many western countries list of critical materials indicating government support is available to transition to a more secure regional supply source.
In such an environment, future magnesium metal production cannot be supported either by fossil fuel, energy & pollution intensive thermal processes as used by Chinese producers or by the high CAPEX, low ROI electrolytic process used pre-2000.
Tech Magnesium's ULTRA Clean Magnesium Aluminothermic Process is a “transformative" electricity-based, low CAPEX technology exhibiting high productivity, energy efficiency & magnesium yield with a significantly reduced carbon footprint of 3.84 kg CO2 per kg Mg (before adding in MgO). For reference, when using MgO from calcined magnesite, the total ULTRA Clean Process carbon footprint is 5.97 which is on par with the cleanest aluminum plants.
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