EU policymakers have launched a drive to restart domestic output of the critical material and intend that Europe should source 15% of its magnesium needs domestically by 2030.

A European Commission staff working document made available to Reuters places a new emphasis on magnesium and a target of cutting dependence on China, saying that investment of up to US$2.12Bn will be needed to restart smelting activity in Europe by 2025.  There are three potential European projects that could produce magnesium in the coming years, two in Romania and one in Bosnia.

There has been no production in Western Europe since 2001 when plants in France and Norway closed down in part due to competition from China which is now by far the world’s biggest producer of magnesium accounting for around 85% of supply.  China supplies over 90% of Europe’s magnesium requirements and the continent’s supply risk concerns are compounded by the fact that Russia is the world’s second-largest producer. 

Magnesium metal is used in aluminium alloys (~40% in the EU) and magnesium alloys (also ~40% in the EU) for its lightness, in a variety of industry sectors including transports, packaging and construction.  Other applications include in the steel industry as a desulphurisation agent, as well as pharmaceutical and agricultural chemical production.