Metal Magnesium Market

Market Overview

The global metal magnesium market size was valued at USD 4.09 million in 2022. It is expected to reach USD 6.29 billion by 2031, growing at a CAGR of 4.9% during the forecast period (2023–2031).

The companies that sell light structural metals used to make lightweight products like car covers, car seats, cameras, laptops, fuel tank covers, steering wheels, and others make up the metal magnesium market. Magnesium is also used in fireworks, sparklers, flares, and other items to melt iron and steel and remove sulfur atoms. Magnesium is ideal for these applications due to its good electromagnetic screening property and heat conductivity. It also adds strength to aluminum, which is widely used for these applications. Furthermore, the rising demand for lightweight components, mainly in the automotive and aerospace sectors, is anticipated to augment the market growth over the forecast period.

Market Dynamics

Global Metal Magnesium Market Drivers

Expanding Need for Alloy Metals

The demand for Magnesium for alloying with other metals rises due to the various uses for magnesium alloys. The production of aluminum-base alloys used in packaging and other applications uses about 35% of the primary magnesium metal. The lightest structural alloys are widely acknowledged to be those made of Magnesium. The most lightweight structural metal, Magnesium, is combined with other metals to improve its physical properties. The low specific gravity and the high strength-to-weight ratio of Magnesium are benefits. The alloying elements that are most frequently used are manganese, aluminum, zinc, silicon, copper, zirconium, and rare-earth metals. 

Additionally, magnesium alloys are used in various industries, including electronics and biology. Magnesium alloys are employed in both industrial and commercial contexts for structural purposes. Due to their lightweight, high strength-to-weight ratio, high stiffness-to-weight ratio, castability, machinability, and excellent damping qualities, magnesium alloys are ideal for various applications. Magnesium alloys are used in high-speed operating machinery for industrial purposes, such as textile and other machinery. In addition, they are used for hand tools, ladders, computer housings, and other industrial purposes.

Global Metal Magnesium Market Restraints

Fluctuations in Metal Prices

The rise in U.S. spot dealer and U.S. spot Western import prices was the cause of the protracted shutdown of an unknown percentage of capacity at U.S. Magnesium LLC's smelter in Rowley, UT, U.S. On September 29, Magnesium issued a notice of force majeure and told contract customers that deliveries would be modified due to equipment failure at its 63,500 metric ton per year smelter. As a result of the factors above, the market under study is likely to be constrained by changes in the price of magnesium metal. In the earth's crust, Magnesium is the eighth most prevalent element. There are over 60 different mineral forms of Magnesium. 

However, the most widely used and economically viable minerals are olivine, dolomite, magnesite, brucite, and carnallite. In brines such as seawater and other liquids, Magnesium is also present in the chloride form. Gossan Resources, Latrobe Magnesium, Alliance Magnesium, and Korab Resources Ltd. are some magnesium mining companies. Minerals containing Magnesium are mined and extracted by mining companies. To cut costs by eliminating intermediaries, the metal Mg companies have direct contracts or mine leases. Thermal reduction and the electrolytic process are the methods used to separate the pure magnesium metal from the mineral forms.

Global Metal Magnesium Market Opportunity

Possible Increase in the Use of Magnesium Metals in Electric Vehicles

Magnesium metal and its alloys are lightweight and give vehicles an equivalent amount of strength or more than other materials; their use in electric vehicles is anticipated to increase. Vehicles would have a greater overall range capacity due to their lighter weight, giving them better mileage per battery charge. Numerous vehicle parts, including brake pads, brake drums, driveshafts, and engine components, will likely require magnesium metal as the market for electric vehicles continues to grow. 

As consumers hesitate to purchase engines with more emissions than electric vehicles, changing emission policies and strict regulations will likely expand the market for electric vehicles in the coming years. The following significant recent developments and government initiatives in the electric vehicle sector will likely increase demand for the market under study in the coming years: France's government lowered taxes on electric trucks to encourage the purchase of these vehicles. According to its Mobility Law, the government wants the road freight industry to be carbon neutral by 2050.

Regional Analysis

The global metal magnesium market is segmented by region into Asia-Pacific, North America, Europe, South America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 6.99% during the forecast period. China is anticipated to represent more than 18% of the global economy and contribute more than 25% of the growth in the worldwide economy in 2021, according to the National Bureau of Statistics (NBS). In addition to other uses, the metal magnesium is used in die-casting, iron and steel, metal reduction, and aluminum alloys. Die-casting and aluminum alloys have become more frequently used in producing equipment and parts for the aerospace, automotive, and other end-user industries.

Due to the rapid development brought on by rising government initiatives, an increase in the number of manufacturing companies, and an expansion of the charging infrastructure, it is anticipated that China's demand for electric vehicles will experience strong growth during the forecast period. The country's demand for electric vehicles is expected to rise due to factors like the sizeable market, growing government support, and the availability of online electric vehicle reservations. Thus, it is anticipated that the growing electric vehicle industry will increase the demand for metal magnesium in aluminum alloys and die-casting applications, driving the market under study to expand in the coming years.

North America is expected to grow at a CAGR of 5.43% during the forecast period. The automotive, aerospace, and electronics industries use aluminum alloys, die casting, and other magnesium metal applications. After China, the United States is the country with the largest market for electric vehicles. More than 500,000 electric vehicle sales were made in 2021. The nation's auto industry has recovered, and sales of electric vehicles have increased by 2.5% to 4.5%. More than half of all-electric vehicles sold nationwide are manufactured by Tesla, which commands the largest market share. In the next ten years, half of the American adults (51%) say they are likely to consider buying an electric vehicle, up from 39% in January and 43% in March-April. Over the forecast period, the country's booming growth in the manufacturing of electric vehicles and aircraft is anticipated to drive market expansion.

Germany is the world's largest consumer of aluminum casting. Due to the high demand for aluminum-made parts from the automotive sector. There is a growing market for lightweight components due to fuel economy and aerodynamic improvements. This tendency tends to increase demand for aluminum alloys, which raises magnesium metal consumption—Europe's largest automobile producer in Germany. With 41 assembly and engine production facilities, Germany dominates the European automotive market and produces one-third of all the cars sold on the continent. Manufacturers from various segments, including equipment producers, suppliers of materials and components, manufacturers of engines, and integrators of complete systems, can be found in Germany, one of the top manufacturing hubs for the automotive industry. 

In parallel, the German Aerospace Center (DLR) is developing additive manufacturing process chains for less expensive, more functional satellite components. Constellium's operations align with DLR's objectives, but using new alloys for space parts requires a thorough comprehension of the interactions between microstructure, part geometry, and mechanical behavior. This factor is predicted to increase the demand for metal magnesium and increase the demand for aluminum alloys for casting.

In Brazil, the production of innovative aluminum alloys that are particularly well suited for their application across the automotive, aerospace, and electronic industries is rising in Brazil, where different manufacturers collaborate and acquire. Due to the availability of resources and skilled labor, major auto manufacturers have established facilities in Brazil. Additionally, it is anticipated that rising electric vehicle popularity and passenger vehicle demand will positively affect the nation's auto industry. As a result, it will probably support the market during the projection period.

In Egypt's GDP growth, textiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, building, cement, metals, light manufacturing, and other industries play a significant role. There are automobile manufacturing facilities in Egypt that well-known global market leaders have established. A few of these are G.M., BMW, Hyundai, and Toyota. The country's rising demand for passenger cars and light trucks is anticipated to increase auto vehicle production, which will likely support the market. Due to its role as a regional hub and re-exporter of devices, the United Arab Emirates is one of the most important markets in the Middle East for trade flows in consumer electronics. Additionally, the expansion of the electronics industry is being aided by the demand for industrial electronic components in application industries. The country's market for electronics is anticipated to increase due to high consumer spending, high-end digital gadget trends, and expanding demand for cutting-edge electronic goods.

Segmental Analysis

The global market for metal magnesium is segmented by the end-user industry.

Based on the end-user industry, the global metal magnesium market is bifurcated into aluminum alloys, die-casting, iron and steel, and metal reduction.

The aluminum alloy segment is the highest contributor to the market and is expected to grow at a CAGR of 5.6% during the forecast period. Without affecting the ductility of the metals, especially aluminum alloy, Magnesium provides moderate and high strength characteristics. Aluminum alloys with Magnesium added fall under the 5xxx series and are marketed as plates and sheets. Aluminum gains strength through solid solution strengthening and has improved strain-hardening capabilities thanks to adding Magnesium. Due to their high strength and non-heat treatability, these alloys are frequently used in structural applications. Manufacturing aerospace parts, automobile parts, industrial parts, tools, and machinery are just a few examples of the primary uses for aluminum alloys.

Magnesium has a tremendous strength-to-weight ratio when used in die casting. It offers lightweight properties, weighing about 75% less than steel and 33% less than aluminum. Magnesium metals can be used in die casting to produce tools with a longer lifespan and superior durability. Additionally, these products are simple to machine, making them popular in die-casting applications. Products made of Magnesium that are die-cast have excellent noise and vibration-dampening qualities, excellent thin-wall complex part performance, good thermal and electrical conductivity, and more. Additionally, since scrap magnesium parts are 100% recyclable, they have many uses in contemporary engineering.

Recent Developments

• April 2022- Western Magnesium Corporation announced a non-brokered private placement of USD 3,000,000 in principal amount of unsecured convertible notes (the "Convertible Note").