Global Green Magnesium Industry Race: U.S. and Australian Enterprises Accelerate Technological Breakthroughs and Capacity Layout [SMM Survey]

U.S. Tidal Metals Deepens Chlorine Gas Distribution Cooperation, Electrolytic Seawater Magnesium Extraction Technology Accelerates Industrialization

On December 9, 2025, U.S. Tidal Metals signed a memorandum of understanding with Alexander Chemical Corporation. The two parties will collaborate on the marketing, packaging, and distribution of high-purity chlorine gas produced during the seawater magnesium extraction process. For every metric ton of magnesium produced, Tidal Metals co-generates nearly three metric tons of chlorine gas. Against the backdrop of the ongoing U.S. asbestos ban and the restructuring of the traditional chlorine gas supply chain, this cooperation will help establish a more resilient, low-cost, and localized chlorine gas supply chain.

Tidal Metals was founded by a team of PhDs from top research institutions such as MIT and Princeton. Its core breakthrough lies in the clean electrolysis process that directly extracts magnesium metal from seawater or desalination brine. Unlike traditional energy-intensive and high-emission smelting methods, this technology consumes only electricity throughout the process and generates no harmful waste, offering dual advantages in environmental impact and cost. The company is currently advancing the industrialization of this technology, and this chlorine gas distribution cooperation is a key part of that effort.

As demand for supply chain autonomy and low-carbon transition of critical metals becomes increasingly urgent in the U.S. and Europe, Tidal Metals' seawater magnesium extraction technology is expected to disrupt the existing industry landscape. It promises to provide a sustainable source of magnesium metal for strategic sectors such as transportation lightweighting, aerospace, and hydrogen storage, further driving the global magnesium industry towards cleaner and more localized production.

Australia's Latrobe Magnesium Secures U.S. Funding Support, Advances Domestic 10kt Plant and Malaysian Mega-Project Simultaneously

Australia's Latrobe Magnesium recently received a financing indication letter of up to $122 million (approximately A$187 million) from the U.S. Export-Import Bank (EXIM). This supports the construction of a commercial magnesium plant with an annual capacity of 10,000 metric tons in the Latrobe Valley. This financing is part of an $8.5 billion U.S.-Australia critical minerals cooperation agreement aimed at breaking the long-standing global magnesium supply reliance on China and Russia.

The company utilizes its self-developed fly ash magnesium extraction technology to convert fly ash from the Yallourn power station into high-value-added magnesium metal. This approach not only enables the recycling of industrial scrap but also significantly reduces the environmental footprint and carbon emissions associated with traditional mining. Currently, Latrobe Magnesium operates a 1,000-metric-ton per year demonstration plant north of Hazelwood and plans to complete the 10,000-metric-ton commercial production line by the end of 2027. The company has signed a long-term offtake agreement with the Metal Exchange, and all magnesium metal produced is intended for export to the U.S. market, including for national defense procurement needs.

Meanwhile, Latrobe Magnesium is accelerating its international expansion, collaborating with Bechtel to plan a 100,000 mt per year magnesium metal super plant project. Located in the Samalaju Industrial Park in Sarawak, Malaysia, the project will utilize local hydropower resources to achieve fully renewable energy production. The company has signed a 20-year binding memorandum with a subsidiary of a major European nickel group for an annual supply of 450,000 mt of nickel-containing iron slag, ensuring stable raw material provision. The project has completed the first phase of pre-feasibility studies and is currently seeking joint venture partners to advance towards production within five years, positioning it to become a significant global low-carbon magnesium production site.

TETRA Technologies Teams Up with Magrathea to Establish Magnesium Joint Venture, Betting on Arkansas Critical Mineral Project

US-based TETRA Technologies (TTI) recently signed an agreement with Magrathea Metals to form a joint venture for magnesium metal production at the Evergreen project in Arkansas, marking the company's strategic shift into the critical minerals sector. This move has received positive market response—its stock price rose 64.15% over 90 days, with a year-to-date cumulative increase of 110.48% and a five-year total shareholder return of 802.18%.

Although current profitability remains under pressure and analysts maintain cautious expectations for its target price, mainstream valuation models indicate the current stock price trades at approximately a 4.1% discount to its fair value of $8.17, while the discount rate has slightly decreased from 7.86% to 7.37%, reflecting improved investor confidence. However, execution risks related to capital expenditures for the Arkansas bromine project, coupled with slower-than-expected growth in battery ESS demand, may exert downward pressure on the current valuation.