What's Happening?
Latrobe Magnesium is advancing plans to establish a 50,000-tonne-per-annum (ktpa) primary magnesium metal plant in South Carolina, U.S. The company has secured Letters of Intent (LOIs) for 32,000 tonnes of committed demand from U.S. consumers and traders,
indicating strong market interest. A preferred site has been identified, offering port and logistics access, with potential for expansion to 100,000 tonnes per annum. CEO Robert Stein emphasized Latrobe's unique position to address the U.S. magnesium supply gap through its intellectual property and capabilities. The LOIs include a commitment from Metal Exchange for a minimum of 25,000tpa, Meridian Lightweight Technologies for 5,000 tonnes, and Twin City Die Castings for 2,000 tonnes. The facility will utilize ferronickel slag feedstock under a 20-year memorandum of understanding with Société Le Nickel (Eramet), with Bechtel nominated as the engineering partner.
Why It's Important?
This project is significant for the U.S. as it aims to bolster domestic magnesium production, a critical metal with diverse industrial applications, including automotive, aerospace, and defense. The U.S. currently relies heavily on imports for magnesium, making this initiative crucial for supply chain resilience and national security. Establishing a large-scale domestic plant would reduce import dependency, create jobs, and foster economic growth in South Carolina. For Latrobe Magnesium, this represents a major expansion into the U.S. market, leveraging its proprietary technology to meet growing demand. The project also aligns with broader U.S. efforts to re-shore manufacturing and secure critical material supplies, enhancing industrial self-sufficiency.
What's Next?
Latrobe Magnesium intends to prioritize the U.S. project, with an estimated $30 million required to fund feasibility studies, site acquisition, and the establishment of a U.S. subsidiary. The company is currently in discussions with several U.S. financial institutions for funding. The goal is to commence a Feasibility Study by Q1 2027, targeting a financial investment decision in March 2028. Construction is projected to take 24 months, with the first production scheduled for April 2030. South Carolina has offered a substantial incentives package, including cash incentives, in-kind services, and tax holidays, contingent on site purchase and formal application. Work on Latrobe's Victorian operation in Australia will proceed pending resolution of the state’s trailing liability scheme for declared mines.
