Published on 4 Sep 2023 on Insider Monkey via Yahoo Finance
12 Largest Magnesium Producing Companies and Best Magnesium Stocks To Buy
In this article, we will discuss the 12 largest magnesium-producing companies and the best magnesium stocks to buy now. If you want to skip our discussion on the growth prospects of the industry, go to the 5 Largest Magnesium Producing Companies and Best Magnesium Stocks To Buy.
According to a report issued by market intelligence firm SkyQuest Technology, the global magnesium market is set to compound annually at an average rate of 5.3% from a size of $4.8 billion in 2022 to $7.25 billion by the end of this decade. Another report says the production of magnesium is set to increase at a compound annual growth rate (CAGR) of 5.30% from 1.09 million tons in 2023 to 1.42 million tons by 2028. Magnesium is considered one of the lightest metals in the use of mankind today. It is considered 30% lighter than aluminum and is widely used in alloys. Given the benefit of being lightweight and having a high melting point, magnesium is widely used by aircraft and automotive industries. Around 70% of the total global production of magnesium is used to make alloys. Meanwhile, 10% of global magnesium production is used as a raw material in making titanium, which is known for its resistance to corrosion. Another 10% of global magnesium production is diverted towards making steel for the construction industry. The significance of magnesium is further reiterated by the fact that most of the beverage cans in the US are made by forming an alloy with 5% magnesium.
The automotive industry combines aluminum with magnesium to form an alloy for various components. According to the US Automotive Material Partnership, one pound of magnesium can replace two pounds of steel and 1.67 pounds of aluminum. This can result in automobile companies reducing the weight of their vehicles by 15%. Any reduction in weight means an improvement in fuel efficiency, which helps reduce carbon emissions and contribute towards safeguarding the environment. According to Australia-based company Latrobe Magnesium (LMG.AX), automobile manufacturers in China intend to increase the weight of magnesium in cars from 18.95 pounds in 2017 to 99.2 pounds by the end of this decade.