Accelerated Deployment of Brine Magnesium Smelting Projects Outside China Brings Incremental Local Magnesium Supply to Europe and the US [SMM survey]

Published: Jun 18, 2026 13:54
[SMM Magnesium Survey: Overseas Brine Magnesium Smelting Projects Accelerate, Bringing Incremental Local Magnesium Supply to Europe and the US] The Canada Greenland Malm bjerg project is advancing preliminary works, conducting tests on magnesium extraction from brine and rare earth recovery. The European Innovation Council's due diligence on a €50 million investment will be completed by the end of June, which can supplement the EU's local magnesium supply. In the US, Magrathea, in collaboration with TETRA, has achieved commercial production of high-purity magnesium through brine-based smelting, marking the only new magnesium smelting capacity built in the US in recent years. Phase one has commenced, filling the gap in domestic high-end magnesium raw material supply.

Greenland Resources advances pre-development works at the Malmbjerg project while concurrently tackling brine-based magnesium extraction and by-product magnesium and rare earth recovery

Canada’s Greenland Resources has disclosed the latest progress of its Malmbjerg project, an EU priority critical mineral asset primarily producing molybdenum, with magnesium and rare earths as by-products. The company has secured mining licenses for molybdenum and magnesium. The enterprise will carry out on-site engineering from August to September, completing detailed designs for mine infrastructure and supporting facilities including a 23-kilometer conveyor corridor. Concurrently, it is initiating metallurgical testing, collecting ore core and seawater samples to test ore and brine-based magnesium extraction and rare earth recovery processes, and plans to incorporate by-product revenues into project revenue estimates. Due diligence for the European Innovation Council’s €50 million investment is expected to be completed by month-end June. The project’s environmentally friendly mining approach can produce high-magnesium brine, and the associated magnesium extraction process is expected to supplement the EU’s domestic magnesium supply.

Magrathea & TETRA Arkansas Brine Magnesium Smelting: Breakthrough in Domestic High-Purity Magnesium Production, Reshaping the US Magnesium Supply Chain

The Magrathea and TETRA joint-venture Arkansas magnesium project achieved a technological breakthrough, leveraging local Smackover brine and a proprietary electrolysis process to produce primary magnesium metal with purity exceeding 99.9% that meets the ASTM B92 standard, representing the only newly-built magnesium smelting capacity in the US in recent years. This partnership integrates both parties’ operational and process strengths in resources and technology, compresses plant construction and production costs, and once operational will reverse the situation where the US’s high-quality magnesium resources have lain idle and the country has long relied on overseas imports, filling supply chain gaps for strategic minerals critically needed in defense, aerospace, nuclear energy and other sectors. Currently, first-phase plant engineering has commenced and received strong support from the local government.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Analysis] Macro sentiment boosts transactions, traders proactively clear inventory, and stainless steel inventory continues a slight destocking.
49 mins ago
[SMM Analysis] Macro sentiment boosts transactions, traders proactively clear inventory, and stainless steel inventory continues a slight destocking.
Read More
[SMM Analysis] Macro sentiment boosts transactions, traders proactively clear inventory, and stainless steel inventory continues a slight destocking.
[SMM Analysis] Macro sentiment boosts transactions, traders proactively clear inventory, and stainless steel inventory continues a slight destocking.
[SMM Analysis] Macro Sentiment Lifts Trading, Traders Actively Clear Inventory; Stainless Steel Inventory Extends Mild Destocking SMM, June 18 – This week, stainless steel social inventory continued its prior destocking trend, with inventory pulling back slightly again amid off-season market conditions. Total inventory in the two core markets of Wuxi and Foshan edged down slightly, from 932,900 mt on June 11, 2026 to 932,200 mt on June 18, down 0.08% WoW. Amid the traditional off-season with weak end-use demand, inventory still maintained a mild destocking pace. This week, the stainless steel market was in the traditional consumption off-season, with overall rigid end-use demand remaining weak. However, marginal improvement in macro sentiment drove a periodic recovery in market trading. During the week, easing US-Iran tensions boosted market risk appetite, driving SS futures sharply higher. Although spot price gains were limited, this effectively repaired end-user pessimism. At the start of the week, downstream purchasing enthusiasm picked up notably, leading to a periodic improvement in spot transactions. Mid-week, futures pulled back somewhat, cooling the market's trading fervor. The underlying weak demand in the off-season was not completely reversed. However, effective hedging formed between the supply side and the circulation side. Expectations for maintenance-driven production cuts at stainless steel mills continued to build during the month, with a contraction in future market supply anticipated. At the same time, traders, facing a weak off-season market, generally adopted an active destocking approach, selling actively to accelerate inventory turnover. These multiple factors together drove the slight destocking this week. Overall, the recovery in futures spurred a periodic improvement in transactions, traders’ active destocking in the off-season, and expectations for mill production cuts were the core reasons why inventory continued to destock this week. Short-term sentiment and circulation...
49 mins ago
Sluggish downstream procurement and insufficient export orders keep the magnesium ingot market on a weak footing [SMM Magnesium Weekly Review]
1 hour ago
Sluggish downstream procurement and insufficient export orders keep the magnesium ingot market on a weak footing [SMM Magnesium Weekly Review]
Read More
Sluggish downstream procurement and insufficient export orders keep the magnesium ingot market on a weak footing [SMM Magnesium Weekly Review]
Sluggish downstream procurement and insufficient export orders keep the magnesium ingot market on a weak footing [SMM Magnesium Weekly Review]
[SMM Magnesium Weekly Review: Downstream Purchasing Weakness and Insufficient Export Orders, Magnesium Ingot Market Remained Weak] This week, the overall market for dolomite and magnesium-related products was stable, presenting a pattern of strong supply and weak demand. Quarries in Wutai, Shanxi, halted production due to environmental protection requirements, leading to localized tightness in high-grade dolomite, but nationwide inventory remained ample. Downstream users purchased as needed, and prices stayed stable. In major production areas, magnesium ingot supply was plentiful, and downstream only made just-in-time procurement. The market was in a stalemate, with sluggish export orders and strong wait-and-see sentiment. Magnesium powder followed the raw material trend; the industry was in the off-season, and both domestic and export transactions were mediocre. Magnesium alloy production was steady, but enterprises experienced divergent order situations. Inventories at some producers rose, and the increase in low-priced supply widened price spreads. The tug-of-war between sellers and buyers intensified across the entire industry chain. In the short term, price fluctuations for each product will be limited, and the market will continue to run steadily.
1 hour ago
Conflicting supply-demand forces persist amid buyer-seller standoff. What’s next for magnesium prices?
3 hours ago
Conflicting supply-demand forces persist amid buyer-seller standoff. What’s next for magnesium prices?
Read More
Conflicting supply-demand forces persist amid buyer-seller standoff. What’s next for magnesium prices?
Conflicting supply-demand forces persist amid buyer-seller standoff. What’s next for magnesium prices?
Since the start of June, the tug-of-war between sellers and buyers over magnesium prices has been intensifying. The EXW price of 99.90% magnesium ingot (Fugu, Shenmu) moved sideways around 16,300–16,400 yuan/mt, with the trading range narrowing significantly. The magnesium market was mired in a supply-demand stalemate, as end-users' acceptance of high magnesium prices declined markedly, while primary magnesium smelters held their bottom line supported by costs.
3 hours ago
Register to Continue Reading
Gain access to the latest insights in metals and new energy
Already have an account?Sign in here