U.S. Magnesium Bankruptcy Hinders Pollution Control, New-Type Rock Refining Technology Impacts Aluminum and Magnesium Supply Chain Landscape [SMM Survey]

Published: Dec 17, 2025 13:19
[SMM Survey: US Magnesium Bankruptcy Hinders Pollution Control, New Rock Refining Technology Impacts Aluminum and Magnesium Supply Chain Landscape] Following the bankruptcy of US Magnesium, the remediation of severe pollution at its Utah plant has stalled due to a funding gap exceeding $100 million. Meanwhile, Brimstone has launched a "fourth-generation refinery" strategy centered on rock refining technology. This technology utilizes silicate rocks to produce various metals such as aluminum and magnesium through a fully electrified process, while simultaneously generating low-carbon cement. A demonstration plant is already under construction and has secured an order from Amazon. If successful, this approach could reshape the global aluminum and magnesium supply chain landscape by revolutionizing raw material and energy structures.

US Magnesium's Bankruptcy and Environmental Liabilities Deepen, Great Salt Lake Pollution Cleanup Stalled

US Magnesium's Rowley plant on the west shore of Utah's Great Salt Lake ceased operations in 2021 due to equipment failure and filed for bankruptcy protection for the second time in the fall of 2024. Its legacy environmental issues and high cleanup costs have raised serious public concerns. According to the US Environmental Protection Agency (EPA), if the plant is permanently closed, the cost of removing site contaminants will "far exceed $100 million." The company, however, claims that resuming production requires a $40 million investment, with an additional $30 million to $100 million needed for lithium extraction. Currently, it lacks the funds to fulfill its environmental obligations.

The plant has been listed on the National Priorities List since 2009. After reaching an agreement with the EPA in 2021, it initiated projects such as a containment wall, but construction halted after only six months due to funding shortages. Geologists warn that an acidic groundwater plume resulting from decades of leakage may be flowing toward the Great Salt Lake, though the company denies this risk. During bankruptcy proceedings, an affiliate of its parent company proposed an asset acquisition and sought to modify the environmental agreement. However, state and federal regulators advocate for liquidating assets, emphasizing the need to avoid repeating the 2001 precedent where liabilities were shifted through bankruptcy.

Amid the legal conflict between bankruptcy law and the Superfund law, it remains undecided whether creditor repayment or environmental remediation takes precedence. Utah residents and regulators are awaiting a court ruling to determine who will pay for the future of this highly contaminated site.

 

Brimstone Unveils Diversified Metals Strategy, Rock Refining Technology Targets Low-Carbon Aluminum and Magnesium Production

US industrial technology company Brimstone recently released its "fourth-generation refinery" strategic plan, extending its patented Rock Refining® process to the production of various metals, including aluminum, magnesium, steel, and titanium. The technology uses calcium-rich silicate rock as a raw material and employs a fully electrified system to co-produce high-value-added products. It claims to significantly reduce carbon emissions and provide decarbonization pathways for high-emission industries such as cement and alumina.

Brimstone's first demonstration plant in Reno, Nevada, is under construction. Initially, it will produce cement, metallurgical-grade alumina, and supplementary cementitious materials, with plans to gradually expand to the refining of key metals like magnesium and titanium. The company has signed a bulk pre-order agreement with Amazon for cement and cementitious materials, providing early support for the technology's commercialization.

If successfully scaled, this technology could alter the raw material dependency patterns of light metal industries such as aluminum and magnesium. Traditional magnesium and aluminum production is highly concentrated in specific mining regions and energy-intensive processes. The Rock Refining model, through raw material diversification and electrification, could enhance supply chain resilience, reduce reliance on existing refining hubs, and offer a new technological option for autonomous supply of critical metals in Europe and the US.

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.

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