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Developments in the Magnesium Alloy Sector: Yizumi and DGS Tackle Technical Challenges, Latrobe Magnesium Advances Plant Construction [SMM Survey]

iconSep 2, 2025 13:12
[SMM Survey: Dynamics in the Magnesium Alloy Sector: Yizumi and DGS Tackle Technical Challenges, Latrobe Magnesium Advances Plant Construction] Recent overseas developments in the magnesium alloy industry: Yizumi signed a cooperation agreement with a subsidiary of Switzerland's DGS Group to jointly overcome technical challenges in magnesium alloy die-casting, supporting manufacturing in related fields. Australia's Latrobe Magnesium (ASX: LMG) commenced operations at its Hazelwood North demonstration plant, producing magnesium oxide, with commissioning to be completed by 2025. The company is also advancing its commercial plant with an annual capacity of 10,000 mt, scheduled for completion in 2027. The project incorporates scrap recycling to practice ESG principles. Both initiatives contribute to the magnesium alloy industry from perspectives of technological breakthroughs and resource circularity.

Focusing on Challenges Such as Mold Precision, Yizumi and DGS Deepen R&D Collaboration

Recently, according to Yizumi Weekly, Yizumi signed a strategic cooperation agreement with Guangzhou Dezhi Metal Products Co., Ltd., a subsidiary of Swiss DGS Group. The two parties will jointly develop and apply magnesium alloy semi-solid injection molding technology. This collaboration integrates Yizumi's expertise in die-casting system technology with the production and technical experience of DGS, an international automotive supplier, focusing on overcoming technical challenges such as mold precision, efficiency, and process stability, while strengthening R&D synergy. According to the plan, the two parties will establish a "DGS-Yizumi Magnesium Alloy Semi-Solid" joint project team to formulate a global market strategy, and will further deepen cooperation through mutual visits, knowledge transfer, and training. It is reported that Yizumi has long been committed to R&D and collaborates with universities. Its semi-solid molding equipment, known for its precision and stability, has been applied in the automotive and 3C fields. Founded in 1925, DGS Group is a leader in aluminum and magnesium alloy die-casting, with factories in Switzerland, the Czech Republic, and China, supplying products to brands such as BMW, Mercedes-Benz, and Volkswagen. This cooperation will help both parties expand their market presence.

From an industry perspective, this collaboration represents a precise alignment of "technical expertise + market resources," providing dual-drive for breakthroughs in magnesium alloy semi-solid die-casting technology while injecting new momentum into automotive lightweighting and precision manufacturing in the 3C sector. The global production and supply chain coverage of both parties may accelerate the commercialization of this technology.

Latrobe Magnesium's Demonstration Plant Launches, Commercial Plant to Be Completed by 2027

Australia's Latrobe Magnesium (ASX: LMG) recently provided an update on the launch of its Hazelwood North Demonstration Plant. Although strong rainfall previously caused a short-term delay in fly ash supply, the team has now officially commenced plant operations. Fly ash deliveries have been rescheduled, and full-capacity, efficient screening will begin once the material moisture content is sufficiently dried. The company's magnesium metal demonstration plant in Victoria's Latrobe Valley uses a patented extraction process to produce and sell magnesium metal and cementitious materials from industrial fly ash (a waste resource) generated by lignite power generation. The demonstration plant has successfully produced magnesium oxide, with full plant commissioning expected to be completed by 2025. Additionally, Latrobe Magnesium is advancing the construction of a commercial plant with an annual capacity of 10,000 mt of magnesium metal, targeting completion in H2 2027. The project embodies ESG best practices, promoting circular economy development by recycling power plant waste.

This progress marks a critical step for Latrobe Magnesium in the field of "waste resource utilization." The patented process transforms industrial scrap into high-value magnesium products, providing a replicable green transformation path for the industry. In the long run, if the planned commercial plants are successfully implemented, they will not only alleviate the supply chain pressure of magnesium metal but also drive the deep penetration of circular economy in the field of energy waste treatment.

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