US Magnesium has announced it will idle operations and lay off 186 employees due to deteriorating market conditions for lithium carbonate. The layoffs, which were notified to the Utah Department of Workforce Services in September, will take effect on November 25, 2024. The company, which operates a plant in east Tooele County, Utah, employs between 100 to 249 workers [de04d78a].
Lithium production at US Magnesium began in 2020, but the company has struggled to produce significant quantities, with less than 2,000 tons produced to date. Despite a 57% price increase for magnesium from 2020 to 2021, the overall production value of magnesium has decreased by 51% from 2021 to 2022, reflecting the challenges the company faces in a volatile market [de04d78a].
US Magnesium has expressed hope to resume operations if there is a recovery in lithium prices, although it cannot guarantee this will happen. The decision to halt operations underscores the broader economic pressures affecting the mining sector, particularly in the context of fluctuating commodity prices and changing market demands [de04d78a].