Great Wall Motor to Buy Australian Lithium Resources for Electric Vehicle Production

【SMM Magnesium Flash】 On September 17th, according to foreign media reports, Latrobe Magnesium has received a conditional non-binding support letter from a large American financial institution, proposing to provide $15 million in equity funding for the feasibility study of its 50,000-ton annual magnesium metal plant in South Carolina, USA. The availability of funds is subject to conditions such as financing matching, due diligence, and regulatory approval. The project uses nickel-iron slag as raw material and has the potential to expand to a production capacity of 100,000 tons in the long term. The company's demonstration plant located in Australia is expected to be fully operational in the second half of 2026, with all production sold to the US market through distributors.

[SMM Magnesium Weekly Review: Cost-Inventory Tug-of-War Keeps Magnesium Industry Chain Consolidating Near Lows] This week, dolomite prices remained stable. Affected by fluctuations in coal and ferrosilicon prices, magnesium ingot in main production areas moved lower initially before strengthening, with raw material declines dragging magnesium prices down early in the week. After prices dipped, downstream restocking at lower levels drove a slight rebound in magnesium ingot, but social inventory remained high and supply pressure persisted. Export FOB prices declined in line with the domestic market, and overseas demand did not recover as expected, with the September-October peak season expectations falling through. Traders mostly stayed on the sidelines, and further downside room for prices was limited. Meanwhile, downstream magnesium powder prices fluctuated in tandem with magnesium ingot, with end-users purchasing only small volumes for immediate needs and no concentrated restocking. Supply and demand for magnesium alloy weakened simultaneously, with smelting-side production cuts but existing inventory remaining high. Downstream die-casting enterprises operated at low rates with insufficient orders, and processing fees remained under pressure. Overall, this week the magnesium industry chain was caught in a tug-of-war between costs and high inventory, with no substantial improvement in end-use demand, and short-term prices are expected to continue consolidating near lows.

[SMM Magnesium Survey: Latrobe Magnesium Shifts Strategy to Prioritize 50,000 mt Magnesium Smelting Project in South Carolina, US] Australia's Latrobe Magnesium (ASX:LMG) has announced its latest plan to build a new primary magnesium plant with an annual capacity of 50,000 mt in South Carolina, US, with a long-term expansion potential to 100,000 mt/year, while its commercial project in Australia has been postponed. The project has secured a site and a long-term raw material supply agreement for nickel-iron slag, obtained letters of intent for 32,000 mt/year of offtake, and is supported by matching subsidies and tax incentives from South Carolina, with the company currently in financing negotiations. North America currently has no commercial primary magnesium capacity, and magnesium is included on the US critical minerals list, so the project aims to fill the gap in North America's magnesium supply chain.