Magnesium

Do you know that the biggest headache for global car owners now is not the lack of chips, but the lack of a magical metal that is lighter than aluminum, harder than steel, and cheaper than plastic, magnesium. China holds 70% of the world's reserves and 92% of its production. Europe and the United States are embarrassed to get stuck. This time it's our turn to call the shots. Today we are going to talk about why magnesium is ushering in a historic turning point and why the industrial logic behind it has suddenly become popular. There are three core reasons.

Firstly, new energy vehicles are collectively experiencing weight loss anxiety. Tesla, BYD, and NIO are all researching how to make their cars lighter, as every 10% weight loss can increase the range of electric vehicles by 6-8%. Magnesium alloy is 33% lighter than aluminum alloy and 75% lighter than steel. The latest data shows that the global demand for magnesium for new energy vehicles is expected to reach 500000 tons by 2025, but the production capacity is only 800000 tons, with a gap of nearly 40%.

Secondly, China holds absolute discourse power, with 92% of global coal production in China. It is unrealistic for Europe and the United States to break free from dependence in the short term. Although the European Union is imposing carbon taxes to restrict imports, China has already conducted transit trade through processing plants in the United Arab Emirates. The price of each aircraft in the United States has risen to $2.75 per pound, equivalent to about $19000 per ton, and export profits are recovering.

The third technological breakthrough has transformed magnesium from an edge material into a core component. Previously, magnesium could only be used as a steering wheel skeleton, but now it can not only be used as a battery housing, but also in electric drive systems to reduce weight by 20% and increase power density by 30%. The breakthrough in semi-solid injection molding technology has doubled the strength of magnesium alloys and completely solved the problem of corrosion,

Has the price of Midea reached a turning point?

From a supply perspective, although the domestic raw coal production capacity is 1.02 million tons this year, the cost support is very obvious, with a production cost of 16800 yuan per ton of coal. The current spot price is 17900 yuan, and small and medium-sized manufacturers are close to the brink of losses. Production reduction is inevitable, but it depends on whether the new production capacity in Qingyang, Shaanxi will be delayed. There is no need to worry about the demand side, as the new energy vehicle and energy storage markets are booming. Tesla, BYD, and other car companies are increasing their use of magnesium alloys, increasing single vehicle demand by 60%. What's even more impressive is magnesium fuel cells, which have an energy density 15 times that of lithium batteries. They have enormous potential in the military and off grid energy storage markets,

Policies are also very awesome. The subsidy for regenerated magnesium in the industrial and information technology forces is 3000 yuan per ton. The National Nonferrous Metals Standardization Committee is currently formulating standards for automotive grade magnesium alloys. For this track, we need to pay attention to several key points. Firstly, the supply and demand game near the cost line. Secondly, the actual volume of new energy vehicle orders. Finally, the commercialization progress of magnesium fuel cells. From a longer-term perspective, magnesium may evolve from a purely metallic material to a strategic resource with spacing energy properties.