EU flags need to invest €2B by 2025 to revive magnesium production – Reuters

The European Commission outlined the need to invest up to €2 billion by 2025 to revive the European Union's magnesium smelting industry and reduce reliance on top producer China, Reuters reported May 20, citing documents and officials.

Magnesium is used in aluminum and steel products. The commission expressed concern that any drop in shipments from China, which supplies 93% of Europe's magnesium needs, might impact the production of cars, airplane parts and other products.

Russia is also a major producer of magnesium, but sanctions due to its invasion of Ukraine made Moscow an unlikely alternative source of supply for the EU.

"Magnesium has been consistently flagged as one of the critical raw materials with the highest supply risk but with no improvement over time," the EU document said.

Under the action plan, 15% of the EU's magnesium needs should come from domestic sources by 2030, Reuters said.

Two magnesium projects in Romania and one in Bosnia, both within the EU, could potentially start production in the coming years, Reuters said, citing Krzysztof Kubacki, an official with EIT RawMaterials, an EU-funded group that implements the EU's action plan for critical minerals.

The EU's last magnesium operations in Norway and France shut down in 2001, partly due to competition from China, Reuters said.

The EU and the U.S. recently pledged to cooperate on strengthening supply chains for critical minerals to lessen the impact of disruptions caused by the Russia-Ukraine conflict. The EU and Canada also made a similar commitment in June 2021.

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