HOUSTON, December 4th (Argus) - Tetra Technologies, headquartered in Texas, is exploring the extraction of metallic magnesium from its bromine plant in Arkansas to help support the domestic supply chain of this key mineral used in industrial, aerospace, and defense applications. Tetra has signed a term sheet with Magrathea Metals, a company based in California, and there is a possibility of establishing a joint venture aimed at applying Magrathea's electrolysis technology for magnesium extraction.
This joint venture is supported by the US Department of Defense and is scheduled to commence operations by the end of 2027. The Tetra bromine plant is located in Stamps, with a bromine production capacity of 75 million pounds per year. Tetra holds mining rights for approximately 40,000 acres of brine mining areas in southwestern Arkansas, which contain important minerals such as bromine, lithium, magnesium, and manganese. The final feasibility study updated by Tetra in September shows that the measured and indicated magnesium resources within the Tetra-controlled area are close to 2.2 million short tons. Due to the cessation of operations of US Magnesium in Utah, this joint venture will be the first commercial-scale native magnesium metal production in the US since 2022. The US Geological Survey estimates that China dominates global magnesium production, accounting for 86% of total smelting capacity in 2024. In 2024, China accounted for the largest share of US imports (nearly 39%), at 917 metric tons, but the shipment volume dropped sharply in August to only 158 tons. Nevertheless, the imported native magnesium metal from the US in the first eight months of this year has exceeded the level of 2024, as US users can obtain more supplies from Brazil, Canada, and Kazakhstan. The recent assessment by Argus of the US warehouse off-take price of magnesium (minimum 99.9%) is $7,055 - $7,606 per ton. Since the increase in prices due to Sino-US trade tensions earlier this year, the price has remained stable since a significant increase from $6,283 - $6,945 per ton.
