WASHINGTON, D.C. - TheNewswire - May 10, 2022 - New research into several critical industries says the global market for magnesium metal will grow by nearly 50 percent by 2028, a surge that will give Western Magnesium Corporation (TSXV:WMG.V ) ( OTC:MLYF ) Frankfurt-3WM) ("Western Magnesium" or the "Company") a significant advantage as it begins the process of building up production capacity in North America.
Recent reports, including one released by Acumen Research and Consulting , predict the $4.3 billion global market will be worth $6.4 billion before the end of the decade thanks to surging post-COVID 19 demand from auto, aerospace, and electronics industries.
After a record low demand during the COVID pandemic, Acumen now believes the industry's compounded annual growth rate will be above 5 percent through 2028 as these industries recover. And while China has supplied close to 90 percent of the world's magnesium, the report noted the difficulties that Chinese producers have had accessing the energy they need to keep up.
These hurdles in China have opened the door to new production sites. Acumen noted that production is expected to grow in India and listed Western Magnesium Corporation as a "major player" that will shape production trends in the coming years.
The Company's senior leadership said the report reinforces their belief that it's time to return magnesium production to North America, both for economic and national security reasons. Magnesium is used in the production of high-tech aluminum used in a range of civilian and defense goods, which means reestablishing production in the Americas is much more than just a "jobs" issue.
Acumen noted that one set of restraints on production is the concern that "mining activities harm the surrounding environment." But while mining has historically been an environmental challenge, Western Magnesium's proprietary technology promises to deliver this critical mineral with near zero toxic by-products.
"Over twenty years ago, North America gave up on its share of producing magnesium metal and ceded the market to China," said Western Magnesium's Executive President & CEO Sam Ataya. "Now, with demand rising, we are about to bring production back and put the United States on a footing to first supply domestic needs and then focus on supplying the global demand with the magnesium it needs to produce the next generation of goods that will be the most environmentally friendly since the start of the Industrial Revolution."
"In the coming years, when the world buys magnesium to produce the aluminum used in cars, planes, and a range of electronics, they will be buying from America," said Western Magnesium's Global President & COO Lisa Maxwell. "That puts us back in control of our destiny and reduces the threat that overseas hiccups pose to our economic and security goals."
The Company is expected to start production of magnesium metal by the end of this month. The location of the first full-scale commercial plant will be in Harrison County, Ohio, and leadership is currently working to select future plant locations in the United States.
About Western Magnesium
Western Magnesium's goal is to be a low-cost producer of green, primary magnesium metal, a strategic commodity prized for its strength and light weight. Unlike outdated, costly, and highly polluting production processes, Western Magnesium intends to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and energy costs relative to current methods and processes, while being environmentally friendly.
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