International Trends Focus on Upgrading Recycled Magnesium and Reconstructing Supply Chains: New Tariff Policies May Reshape Trade Patterns [SMM Survey]

According to the latest survey data from SMM, the magnesium market this week has witnessed the following international developments and changes in trade flows:

Germany's Speira Group upgrades magnesium recycling production line
The Töging magnesium recycling plant, owned by Germany's Speira Group, recently completed an upgrade of its automated production line, adding specialized sorting equipment to handle oily magnesium alloy scrap. The production line employs innovative separation technology to efficiently remove cutting fluid contaminants, achieving a regenerated magnesium purity of 99.2% and a 15% increase in annual processing capacity. The plant plans to commence trial supplies to European battery manufacturers in the fourth quarter of this year, a move expected to alleviate the European new energy vehicle (NEV) industry chain's reliance on primary magnesium.

Clontarf Energy achieves breakthrough in lithium-magnesium extraction technology
Clontarf Energy announced at its shareholders' meeting that the pilot performance of its self-developed direct lithium-magnesium extraction technology exceeded expectations. This technology, which extracts lithium and magnesium elements simultaneously from salt lake brine through a special process, is now ready for commercial application. The company is actively advancing legal approval procedures and engaging in negotiations with potential off-takers. The EU Green Infrastructure Fund has expressed interest in providing financial support to help the project achieve an annual production scale of 10,000 mt.

Greenland molybdenum-magnesium mine project approved for development
The EU has made significant progress in building its critical raw material supply chain, with the Greenland Malmbjerg molybdenum-magnesium mine project officially receiving mining permits. According to the plan, the project will meet 25% of the EU's demand while also constructing facilities for magnesium extraction from brine. Notably, the project party has signed a long-term off-take agreement worth $1.6 billion with Finland's Outokumpu, which will significantly reduce the EU's reliance on China for molybdenum (accounting for 87% of global supply) and magnesium (accounting for 97% of imports).

New US-Vietnam tariff policy takes effect on July 9
The US Department of Commerce's latest announced tariff policy on Vietnam will officially take effect on July 9. The new regulation sets the benchmark tariff rate for Vietnamese exports at 20%, a significant reduction from the originally planned 46%, but maintains a 40% punitive tariff on "transshipped" goods (containing Chinese parts simply processed in Vietnam). The policy covers major export categories such as textiles, electronic components, and aquatic products, but the specific criteria for identifying transshipped goods remain unclear, potentially leading to subsequent trade disputes. Industry insiders point out that the policy aims to balance bilateral trade while curbing tariff evasion.

The global magnesium market currently exhibits a tug-of-war between sellers and buyers, with prices in China's main producing areas maintaining sideways movement, while European demand faces short-term pressure due to the summer break. However, with enterprises like Germany's Speira Group promoting upgrades in regenerated magnesium production capacity and the EU's localization of critical raw material supply chains, global magnesium trade flows may gradually adjust, potentially alleviating reliance on Chinese supplies in the long term. The short-term market is still affected by policy uncertainties and seasonal demand fluctuations, and prices are expected to maintain a fluctuating trend. However, in the second half of the year (H2), attention should be paid to whether the growth in new demand for new energy vehicles (NEVs) and the energy storage system (ESS) sector can drive magnesium prices to stabilize and rebound. It is also necessary to monitor the new international market trade trends brought about by tariff policy adjustments. SMM will continue to conduct surveys and tracking.