Advances in Magnesium Extraction From Australian Lignite and Magnesium Alloy R&D Both Make Progress, Local Supply Capacity and High-End Applications Both Enhanced [SMM Survey]

Published: Jul 16, 2026 15:29
[SMM Magnesium Survey: Australian Brown Coal Magnesium Extraction and Mg Alloy R&D Both Make Progress, with Enhanced Domestic Supply Capacity and High-End Applications] Latrobe Magnesium has secured $16 million in financing for the commissioning of the magnesium metal section of its demonstration plant, plans to start production in H2, and has already locked in sales to the US market. Monash University, in partnership with CSIRO, has developed a new-type magnesium alloy that increases shear stress by 33 times, providing a new material foundation for automotive and aerospace lightweighting.

Latrobe Magnesium Secures $16 Million Funding: Brown Coal Ash Magnesium Demo Plant Races Toward H2 Production Start

Australia's Latrobe Magnesium has signed a financing agreement of up to $16 million with strategic investor Long State Investment. The first tranche of $6 million will be received by September 30, 2026, for completing the installation and commissioning of the magnesium metal section at the demonstration plant in Victoria. The remaining funds will be flexibly utilized by the company based on development milestones over the next 36 months, to expand the demo plant to an annual output of 1,200 mt and complete refinery construction. The project uses a patented process to extract magnesium metal and by-products such as magnesium oxide from waste fly ash generated by brown coal power generation, and has previously produced about 20 mt of 90%-purity magnesium oxide. The company plans to achieve first magnesium metal delivery in H2 2026, with future output entirely locked in by US distributors.

Monash University Develops New-Type Magnesium Alloy, Breaking Through Lightweight Application Bottleneck

Monash University, in collaboration with CSIRO and Chongqing University, has made a breakthrough in the field of magnesium alloys. The research team used 120kV low-voltage atomic-resolution X-ray technology to clearly observe for the first time the segregation patterns of neodymium and silver elements at twin boundaries. Experiments show that the new segregation pattern enhances the boundary pinning effect by over 30 times and improves shear stress by 33 times, significantly boosting the strength and deformation resistance of magnesium alloys. This achievement solves the longstanding challenge of magnesium alloys being prone to deformation during thermomechanical processing and difficult to replace steel, offering a lighter and stronger material choice for automotive, aerospace and other fields. It is expected to significantly improve fuel efficiency and structural integrity, driving large-scale application of magnesium alloys in high-end manufacturing.

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Magnesium Ingot Inventory Down 3.2% MoM, Prices Rise Amid Weak Demand and Trader Stock Clearing
1 hour ago
Magnesium Ingot Inventory Down 3.2% MoM, Prices Rise Amid Weak Demand and Trader Stock Clearing
Read More
Magnesium Ingot Inventory Down 3.2% MoM, Prices Rise Amid Weak Demand and Trader Stock Clearing
Magnesium Ingot Inventory Down 3.2% MoM, Prices Rise Amid Weak Demand and Trader Stock Clearing
【SMM Magnesium Flash】This week, the social inventory of magnesium ingots decreased by 3.2% month-on-month, showing a trend of destocking. At the beginning of the week, domestic magnesium ingot prices continued to rise. Downstream customers and traders exhibited a strong aversion to high prices, and there were no large-scale proactive stock-up operations. Only rigid demand transactions were maintained, and market trading was relatively weak. Against the backdrop of rising ex-factory prices for magnesium ingots and no substantial recovery in demand, traders took the initiative to clear early low-priced stockpiles. As a result, the inventory transitioned from the previous pattern of accumulation to destocking. The continuous release of low-priced supply suppressed magnesium prices, coupled with the market mentality of "buying when prices rise and not buying when prices fall," the market continued to operate under pressure.
1 hour ago
Magnesium Prices Consolidate Amid Coal Price Fluctuations, End-use Demand Weakness Drags Down Rise [SMM Magnesium Weekly Review]
2 hours ago
Magnesium Prices Consolidate Amid Coal Price Fluctuations, End-use Demand Weakness Drags Down Rise [SMM Magnesium Weekly Review]
Read More
Magnesium Prices Consolidate Amid Coal Price Fluctuations, End-use Demand Weakness Drags Down Rise [SMM Magnesium Weekly Review]
Magnesium Prices Consolidate Amid Coal Price Fluctuations, End-use Demand Weakness Drags Down Rise [SMM Magnesium Weekly Review]
[SMM Magnesium Weekly Review: Coal Price Fluctuations Drive Magnesium Price Consolidation, Weak End-Use Demand Caps Upside] This week, dolomite supply structure diverged, with high-quality local ore sources in Wutai remaining tight. Enterprises purchased from other provinces to supplement supply, keeping overall ore supply sufficient and prices stable. Driven by wild swings in coal prices, magnesium ingot prices in main production areas rose first and then fell. At the start of the week, raw material cost push shot up magnesium prices, but downstream clients balked at high prices and reduced purchases. Coupled with the subsequent coal price pullback, magnesium ingot prices gave back all gains. Export FOB quotes edged down in tandem with domestic prices, export orders fell short of expectations, September-October peak season demand failed to materialize, and traders held a strong wait-and-see sentiment. Downstream magnesium powder and magnesium alloy were also under pressure. Magnesium powder followed magnesium ingot fluctuations, processing fees were under pressure, and downstream buyers only maintained rigid demand. Magnesium alloy saw weak supply but even weaker demand, with die-casting plant operating rates declining, inventory rising, and processing fees weakening. Overall, this week's magnesium industry chain was primarily disrupted by coal cost fluctuations, end-use demand showed no substantive recovery, and the entire industry lacked strong support, maintaining a fluctuating trend on a subdued note in the short term.
2 hours ago
Europe and the US Accelerate Local Magnesium Resource Projects to Advance Critical Minerals Supply Chain Independence [SMM Survey]
2 hours ago
Europe and the US Accelerate Local Magnesium Resource Projects to Advance Critical Minerals Supply Chain Independence [SMM Survey]
Read More
Europe and the US Accelerate Local Magnesium Resource Projects to Advance Critical Minerals Supply Chain Independence [SMM Survey]
Europe and the US Accelerate Local Magnesium Resource Projects to Advance Critical Minerals Supply Chain Independence [SMM Survey]
[SMM Magnesium Survey: Europe and the US Accelerate Local Magnesium Resource Projects to Advance Critical Minerals Supply Chain Independence] Romania's MPI and the US's Magrathea are successively advancing integrated magnesium projects. A €400 million magnesium ore project in Europe has obtained a mining permit, and a US enterprise has secured over $100 million in funding to develop magnesium extraction from brine, with both regions aiming to reduce reliance on magnesium imports and ensure raw material supply for high-end manufacturing and military industries.
2 hours ago
Register to Continue Reading
Gain access to the latest insights in metals and new energy
Already have an account?Sign in here