America’s largest magnesium producer goes bankrupt, raising environmental and supply chain questions

The bankruptcy of US Magnesium in September has created a complex situation with both environmental benefits and national security concerns. The company’s half-century-old smelting plant on Utah’s Great Salt Lake was America’s largest source of primary magnesium—a critical mineral found in everything from soda cans and car parts to wind turbines and military equipment.

Environmental advocates are celebrating the potential permanent closure of the Rowley plant, which has long polluted Utah’s Wasatch Front air quality and contaminated land around the Great Salt Lake. A 2023 federal study found the facility contributed up to 25% of the region’s wintertime smog, and Utah recently achieved Clean Air Act compliance for the first time in 15 years. State officials are moving to revoke the company’s mineral lease, citing unauthorized hazardous waste storage and other violations.

However, the closure raises serious supply chain concerns. While the market has largely adjusted since the plant shut down in 2021 due to equipment failures—with companies finding alternative suppliers and recyclers like Tennessee-based MagPro filling gaps—experts worry about long-term dependence on Chinese imports. China produces 1.8 million tons of magnesium annually compared to America’s 64,000-ton capacity. The Department of Defense has already awarded $19.6 million to startup Magrathea Metals to establish new domestic production, viewing magnesium supply as a national security priority.

The situation highlights the ongoing challenge of balancing environmental protection with strategic resource independence, as America seeks cleaner alternatives to polluting industrial operations while maintaining critical mineral supplies for defense and green energy infrastructure.