Shaanxi Nonferrous Invests 2 Billion in Xinjiang to Boost Magnesium Industry and Central Asia Exports

[SMM Magnesium Express]Yesterday, Jiangxi Zhongke Yamei New Materials Technology Co., Ltd., after 17 years of technological research, achieved a full closed-loop process from magnesium alloy smelting, extrusion, and die casting to waste recycling, overcoming the safe recycling technology for magnesium alloy cutting waste, further reducing comprehensive production costs by 10%. The company, established in Fuzhou High-Tech Zone, leverages the local new energy vehicle industry ecosystem. Its customized automotive magnesium alloy components for BYD have entered the prototype verification stage, aiming to increase magnesium usage per vehicle from the current approximately 10 kilograms to 50 kilograms by 2028. Upon full production capacity, the company can annually produce 100,000 tons of magnesium alloy ingots and 20,000 tons of high-performance lightweight components, with an annual output value expected to exceed 3 billion yuan. With the maturation of the full-process technology and capacity release, the large-scale application of magnesium alloy in the new energy vehicle sector is expected to accelerate.

[SMM Magnesium Express]Today, according to China Securities Journal, Xu Hong, Chairman of Yongmaotai, elaborated systematically on the company's magnesium alloy strategic layout in an exclusive interview. The company defines its magnesium alloy business as a "second growth curve," establishing a magnesium alloy division and building new magnesium alloy die-casting factories in two major bases in Anhui and Chongqing. The planned production lines will exceed 20, covering models from 650T to 7000T, and introduce semi-solid forming technology, targeting core structural components such as automotive instrument panel beams, electric drive housings, and rear floor panels. Xu Hong noted that by 2030, the per-vehicle magnesium usage in China is expected to increase from the current 8 kilograms to 45 kilograms, corresponding to an incremental market of approximately 50 billion yuan. As production capacity gradually ramps up, the large-scale application of magnesium alloy in automotive and robotics sectors is anticipated to accelerate.

[Magnesium Ingot: Price Holding and Concessions Coexist, Weak Demand Drags on Transactions] Today, on the supply side, after consecutive price cuts, magnesium ingot producers’ willingness to hold prices firm strengthened, but some continued to offer concessions to facilitate transactions amid inventory pressure. On the demand side, markets in and outside China remained mediocre, with export quotations under pressure. It is expected to be in the doldrums in the short term.