TSXV:WMG.H - Post by User
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Zebec2021on Oct 21, 2021 1:58am
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Post# 34031040
RE:WMG
RE:WMG Magnesium shortage. As global supply chains stretch and snap, the concentration of production in China—creating numerous vulnerabilities—has become more obvious. The latest example is magnesium, an element in aluminum alloys that are critical to the automotive industry. Eighty-five percent of the world’s magnesium comes from China, and 60 percent of that is concentrated in the city of Yulin, in the mining-heavy province of Shaanxi.
Power shortages across China have caused the Yulin government to impose sharp production curbs on magnesium processing, shutting down 70 percent of smelters and ordering the remainder to operate at half power. As with other materials, China both has abundant deposits of magnesium and has formed a complete industrial chain for its processing—something that will take time and effort to replicate elsewhere.