Izvestia: the world may soon face a shortage of cars due to a lack of magnesium due to the lack of one of the key components of raw materials – magnesium, produced mainly in China. The situation is largely related to the new environmental policy of the country's leadership.
Since the fall of 2021, the authorities of some provinces in China have begun to impose new requirements on industrial enterprises aimed at reducing the use of non-environmentally friendly coal, primarily for electricity generation. This led to supply disruptions.
This policy has already affected magnesium mining and production. They have cut supplies to consumers. At the same time, China accounts for about 90 percent of the world production of this metal and about 95 percent of the EU's imports. Many large aluminum producers have already announced a shortage of raw materials, which are magnesium.
In addition, the situation may negatively affect the European and global automotive market. The European Association of Automobile Manufacturers (ACEA) expects magnesium reserves in the region to run out by the end of November, after which production stops and plant closings could begin. Experts also predict problems in the auto parts market, primarily for expensive premium cars.
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