Australia's Latrobe Magnesium will build a new primary magnesium plant with an annual capacity of 50,000 tonnes in the C

September 22, 2026

Dernières nouvelles de l'entreprise Australia's Latrobe Magnesium will build a new primary magnesium plant with an annual capacity of 50,000 tonnes in the C

September 15, 2026, Victoria, Australia: Latrobe Magnesium Limited (ASX: LMG) is pleased to announce that it will proceed with the construction of a primary magnesium metal plant with an annual capacity of 50,000 tonnes, to be located in South Carolina, USA. The company has signed Letters of Intent (LOIs) representing 32,000 tonnes per annum of committed demand from US consumers and traders and has secured strong support from the State of South Carolina. LMG has secured feedstock for the new facility through a binding 20-year Memorandum of Understanding (MOU) with Société Le Nickel (Eramet) regarding ferronickel slag. The facility will help meet US strategic magnesium needs across sectors including defense, aerospace, automotive, and aluminum.

Incoming LMG CEO Mr. Robert Stein stated: "This strategic update is the result of years of pioneering work and tireless effort by David Paterson and the Latrobe Magnesium team. With our intellectual property and capabilities, LMG is uniquely positioned to seize this opportunity and help address the critical magnesium supply gap in the US. Backed by US corporate and government support, LMG has identified a clear path to advance this commercial project, with a sharp focus on disciplined execution and shareholder value creation. I am delighted to lead the team on this journey, continuing David's work and establishing Latrobe Magnesium as a reliable, secure, and sustainable partner for our future customers in the US, Australia, and overseas."

Key Details & Progress

  • LMG will proceed with the construction of a 50,000 tonnes-per-annum primary magnesium metal plant in the US.
  • LMG has identified a preferred site in South Carolina and is currently in advanced negotiations regarding the location. The site features infrastructure suitable for a commercial-scale 50,000 tonnes-per-annum plant—including port and logistics access—and offers the option to expand capacity to 100,000 tonnes per annum.
  • LMG is negotiating funding for a US subsidiary to cover feasibility and related studies, land acquisition, and working capital in exchange for project-level equity.
  • LMG has received Letters of Intent, including an agreement in principle from Metal Exchange LLC to expand its North American distribution agreement to a minimum of 25,000 tonnes per annum.
  • In addition, LMG has received letters of intent for offtake agreements totaling 5,000 tonnes per annum from Meridian Lightweight Technologies and 2,000 tonnes per annum from Twin City Die Castings, the largest magnesium die-casting company in North America.
  • In total, LMG has received inquiries from potential North American customers for up to 110,000 tonnes per annum, alongside global inquiries totaling 285,000 tonnes per annum.
  • South Carolina has offered a substantial incentive package—including cash incentives, in-kind services, and tax holidays—subject to the purchase of the site and the submission of a formal application.
  • The supply of 100% of the raw materials is covered by a binding 20-year Memorandum of Understanding (MOU) signed between LMG and Société Le Nickel (Eramet), and Bechtel has been named the preferred engineering partner.
  • The U.S. Department of Energy has designated magnesium as one of the 13 commodities posing the highest supply risk among U.S. critical minerals. Furthermore, the U.S. Defense Industrial Base Consortium (DIBC) has recently launched a magnesium-related "Request for Project Proposals (RPP) 2" initiative.