BUSINESS AREAS WITH HIGH OPPORTUNITIES DUE TO HIGH DEMAND FOR EXOTIC MINERALS IN THE AMERICAN TECH INDUSTRY (#Magnesium, #Uranium, #Galium, etc)

The U.S. government has identified several critical minerals essential for economic and national security, including those related to rare earth elements (REEs), battery materials, aerospace, defense, and clean energy. These minerals are included in various federal initiatives like the Defense Production Act (DPA), the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Natioal Defense Authorization Acts (NDAA). In this article, we are going to aim the Magnesium as an examplo of the possibilities of development, but it nos the only one).

***********Currently Magnesium Processing Methods*********

Pidgeon process. The Pidgeon process is a practical method for smelting magnesium. The most common method involves the raw material, dolomite being fed into an externally heated reduction tank and then thermally reduced to metallic magnesium using 75% ferrosilicon as a reducing agent in a vacuum.

2 MgO·CaO + Si → 2 Mg + Ca2SiO4

Steps:

The most commonly utilized raw material is mined dolomite, a mixed (Ca,Mg)CO3, in which the calcium oxide in the reaction zone scavenges the silica produced, generating heat and consuming one of the products, finally helping to shift the equilibrium to the right. c(1) Dolomite calcination.

CaCO3·MgCO3 → MgO·CaO + 2 CO2

Reduction phase:

MgO·CaO +Si → 2 Mg + Ca2SiO4

Variants:

1. Pidgeon Process. Chinese variant.
2. Pidgeon Process. Canadian Variant.

Disadvantages of the Pidgeon process

Although the Pidgeon technique has many advantages, it also has significant environmental downsides. With the rising demand for magnesium in recent years, manufacturing through ore reduction has been generating larger volumes of CO and particulate matter.

There are environmental consequences since producing light-weight materials requires more energy than the substance being replaced, which is often iron or steel. For every 1 kg of magnesium obtained, about 10.4 kg of coal is burned and 37 kg of carbon dioxide is generated, whereas less than 2 kg of carbon dioxide is produced for every 1 kg of steel.

In China, the Pidgeon method produces magnesium with a 60% larger global warming impact than aluminum, a rival metal mass-produced in the country.

Alternatives to the Pidgeon process

Numerous technologies have been developed to produce magnesium metal. These methods can be generically classified as electrolytic (Dow Process/Magrathea) or thermic.

Flowsheet of Electrolytic Routes: Hydrous (Dow Chemical Process) and Anhydrous (IG Farben, Norsk Hydro, VAMI). (Kipouros and Sadoway, 1987) Electrolysis of magnesium chloride dissolved in molten chloride salts occurs at 700 to 800 o C inside brick-lined vessels. For the anhydrous process, the electrolysis of magnesium chloride can be written as follows: Cathode: Mg 2+ + 2e → Mg (l) E o = -2.38 V (1) Anode: 2 Cl -→ Cl 2(g) + 2e E o = 1.36 V (2) Overall: MgCl 2 (s) → Mg (l) + ? Cl 2(g) , E = 3.74 V (3) ?

*******Summary of the Magnesium Production Process ******

***********U.S. Acts Impacting the Magnesium Industry******

1. Defense Production Act (DPA)

Impact on Magnesium Industry

• The DPA Title III has been used to fund magnesium processing projects to ensure a secure domestic supply chain.
• Magnesium is critical for military applications, including aircraft, missiles, and lightweight armor.
• The U.S. Department of Defense (DOD) has invested in magnesium production projects to reduce reliance on imports from China, Russia, and Kazakhstan.

Key Actions

• In 2022, the Biden Administration invoked the DPA to fund critical mineral projects, including magnesium, aluminum, and titanium.
• Funds were directed to domestic mining and refining operations to increase U.S. magnesium production.
• The Defense Logistics Agency (DLA) maintains strategic stockpiles of magnesium for defense applications.

2. Infrastructure Investment and Jobs Act (IIJA)

Impact on Magnesium Industry

• Provides funding for critical mineral extraction and processing, including magnesium.
• Supports research on recycling magnesium from industrial waste.
• Encourages sustainable mining practices to expand domestic production.

Key Provisions

• $6 billion for battery materials processing & recycling – Magnesium alloys are used in lightweight EV battery casings.
• $3 billion for rare earth elements & critical minerals – Funds projects to expand U.S. magnesium refining capacity.
• $1.5 billion for advanced manufacturing – Supports magnesium alloy production for aerospace and automotive applications.

3. Inflation Reduction Act (IRA)

Impact on Magnesium Industry

• Provides production tax credits for U.S.-based magnesium mining and processing.
• Encourages the use of magnesium alloys in clean energy technologies (e.g., wind turbines, solar panels, and EV components).
• Requires EV manufacturers to source a minimum percentage of materials (including magnesium) from the U.S. or allied nations to qualify for tax credits.

Key Provisions

• $30 billion for U.S. mineral production – Includes incentives for magnesium processing and refining.
• EV and battery incentives – Supports magnesium usage in lightweight vehicle components.
• Clean energy manufacturing tax credits – Encourages the development of magnesium alloys for renewable energy applications.

4. S.4638 - National Defense Authorization Act for Fiscal Year 2025 (NDAA)-2025

Impact on Magnesium Industry

• Bans the U.S. military from purchasing magnesium from China and Russia.
• Directs the DOD to secure domestic magnesium supply chains for defense applications.
• Expands the Defense Logistics Agency (DLA) stockpiles of magnesium.

Key Provisions

• $800 million+ for critical mineral research & production (including magnesium).
• Mandates domestic sourcing of magnesium for military aircraft, missiles, and lightweight armor.
• Supports partnerships between the U.S. government and private companies to develop secure magnesium refining capabilities.

5. H.R.4346 - CHIPS and Science Act

https://www.congress.gov/bill/117th-congress/house-bill/4346

Impact on Magnesium Industry

• Magnesium is used in high-performance electronic casings, heat sinks, and semiconductor manufacturing equipment.
• The CHIPS Act indirectly supports the magnesium industry by encouraging U.S. manufacturing of high-tech components.
• Provides grants for industrial materials research, including magnesium-based lightweight alloys.

***GENERAL VIEW TO THE MARKET OF EXOTIC MINERALS***

Rare Earth Elements (REEs)

Neodymium (Nd), Dysprosium (Dy), Terbium (Tb), Praseodymium (Pr), Samarium (Sm), Yttrium (Y), Europium (Eu)

Used in permanent magnets, wind turbines, EV motors, and defense applications.

Major focus of U.S. investment due to China’s dominance in refining.

Battery & Energy Storage Materials

***Lithium (Li)

• Found in spodumene, petalite, and brine deposits.
• Used in lithium-ion batteries for EVs and grid storage.
• U.S. projects in Nevada (Thacker Pass) and North Carolina (Piedmont Lithium).

***Cobalt (Co)

• Primary ore: cobaltite, erythrite, and asbolite.
• Critical for EV batteries, aerospace alloys, and magnets.

o??? Major supply-chain vulnerability, as 70% comes from the Democratic Republic of Congo.

***Nickel (Ni)

• Ores: Limonite, pentlandite, laterite, and sulfides.
• Used in EV batteries, stainless steel, and superalloys.
• U.S. focusing on developing nickel mining in Minnesota and Michigan.

***Graphite (C)

• Used in EV battery anodes.
• No current U.S. production; focus on synthetic and natural graphite projects.

Aerospace, Defense, and Alloying Metals

***Magnesium (Mg)

• Ores: dolomite, magnesite, brucite, and seawater extraction.
• Used in lightweight alloys for aerospace, defense, and automotive applications.
• U.S. efforts to boost production through Western Magnesium Corp. and US Magnesium LLC.

High-Tech and Semiconductor Materials

***Gallium (Ga)

• Found in bauxite and zinc ores.
• Used in semiconductors, LEDs, and 5G technology.
• Mostly sourced from China; U.S. aims to develop alternatives.

***Germanium (Ge)

• Found in zinc and coal deposits.
• Used in fiber optics, infrared optics, and solar cells.
• U.S. focusing on recycling and secondary sources.

***Indium (In)

• Found in zinc sulfide ores.
• Essential for touchscreens, semiconductors, and solar panels.

Nuclear and Energy Transition Materials

***Uranium (U)

• Ores: Pitchblende, uraninite, carnotite.
• Used in nuclear energy; U.S. seeks domestic production over Russian imports.

***Thorium (Th)

• Found in monazite and bastn?site ores.
• Potential use in advanced nuclear reactors (Molten Salt Reactors).

Industrial and Steelmaking Materials

***Chromium (Cr)

• Ores: Chromite.
• Used in stainless steel and superalloys.

***Manganese (Mn)

• Ores: Pyrolusite, rhodochrosite.
• Critical for steel production and battery cathodes.
• The U.S. depends on imports, with focus on new sources.

***Fluorspar (CaF?)

• Used in steelmaking, aluminum production, and fluorochemicals.

***Zirconium (Zr) / Hafnium (Hf)

• Found in zircon ores.
• Used in nuclear reactors, aerospace, and corrosion-resistant coatings.

REFERENCES

• #DefenseProductionAct (DPA).
• #InfrastructureInvestmentandJobsAct (IIJA)
• #InflationReductionAct (IRA)
• #NationalDefenseAuthorizationActs (NDAA)
• #CHIPSandScienceAct
• Metal From Seawater - The American Prospect. (Article: Metal From Seawater).
• MAGNESIUM: CURRENT AND ALTERNATIVE PRODUCTION ROUTES-Winny Wulandari, Geoffrey A. Brooks1, Muhammad A. Rhamdhani1, Brian J. Monaghan-Faculty of Engineering and Industrial Sciences-Swinburne University of Technology, Melbourne, Victoria, Australia-Faculty of Engineering-University of Wollongong, Wollongong, NSW, Australia