Magnesium metal is one of the most alkaline-earth metals which belongs to group 2 of the periodic table. It is lightest structural metal and is widely used across construction, aerospace, medical, and automotive industries. They are highly beneficial to make the product lightweight such as luggage, laptops, cameras, car seats, and power tools. Moreover, it is also added to molten steel and iron in order to remove sulfur. Furthermore, it is also used in the production of aluminum alloys and die casting components which can be used across a wide range of applications. Additionally, magnesium metal is also used across robots, wind turbines, capturing carbon dioxide, producing hydrogen, batteries.
The global magnesium metal market was estimated to account for around US$ 3.5 billion, in terms of revenue in 2018 and is predicted to grow at a CAGR of 7.2% during the forecast period (2019 to 2027)
Growth in the automotive industry coupled with the rising need to curb the greenhouse emission is expected to propel the market growth of magnesium metal. Increasing focus of manufacturers to introduce fuel-efficient vehicle is projected to accelerate the market growth of magnesium metal. Moreover, rising production of crude steel production due to the growing demand for steel is expected to augment the market growth of magnesium metal.
The growing production of consumer electronic goods around the globe is expected to augment the market growth of magnesium metal. Magnesium metal is widely used in the production of lightweight electronic devices such as cameras where it is used in the body and lens shell of the camera. Hence, the growing application of magnesium metal from electronic industry is expected to accelerate the market growth of magnesium metal.
Among application, aluminum alloys dominated the global magnesium metal market in 2018 with a 32% of market share in terms of revenue, followed by die-casting and metal reduction, respectively.
The growing investment by the manufacturer to increase production is expected to accelerate market growth. For instance, in September 2019, Western Magnesium Corporation announced a non-brokered private placement with a U.S. based private investment firm. The private placement will provide the Company with US$ 5 Million to finance the Company’s growth strategy and ongoing operations.
A growing number of research programs for exploring more properties of magnesium metal is expected to accelerate the market growth. For instance, in January 2020, ALLITE Inc. and Xi'an Jiaotong University collaborate to pave the way for meaningful discoveries in magnesium alloy research. The purpose of this research activities is to develop its core offering and capabilities, ALLITE Inc. will support a 5-year, multi-million-dollar partnership with top material science professors at Xi'an Jiaotong University, with focus on further advancing the proprietary ALLITE Super Magnesium alloys.
Key players operating in the global magnesium metal market are US Magnesium LLC., Dead Sea Magnesium Ltd., POSCO, RIMA Group, Solikamsk Magnesium Works OAO, Wenxi YinGuang Magnesium Industry (Group) Co., Ltd., Shanxi Wenxi Hongfu Magnesium Co., Ltd., Shanxi Wenxi Zhenxin Magnesium Co., Ltd., and Taiyuan Tongxiang Magnesium Co., Ltd.