US Magnesium Halts Operations in Skull Valley, Layoffs Impact Hundreds

US Magnesium, a major player in the mining and chemical industry, has announced a significant decision to halt plant operations at its Skull Valley facility. This move, driven by a sharp decline in lithium carbonate prices, has resulted in a mass layoff of 186 workers.

The company cited "deteriorating market conditions" as the primary reason for the shutdown. Lithium carbonate prices have plummeted by a staggering 90% since 2022, severely impacting the economic viability of the operation. The layoff notice, filed with the Utah Department of Workforce Services, detailed a wide range of positions affected, from top-level executives to frontline workers.

The Skull Valley operation is capable of producing substantial quantities of magnesium, lithium carbonate, and other chemical products. Its unique location on the Great Salt Lake provides access to concentrated brine, a crucial raw material for its manufacturing processes. The Skull Valley is a rich reserve of magnesium that produces 9,000 metric tons of lithium carbonate annually. The facility is spread across 80,000 acres and utilizes 100 square miles of solar evaporation ponds to concentrate brine that serves as the primary raw material for its manufacturing processes.

However, the recent downturn in the lithium market has forced the company to take drastic measures.

US Magnesium's financial challenges are further compounded by a lawsuit filed by construction company Forgen. Forgen alleges that the company owes over $5.8 million in unpaid invoices and interest. The lawsuit also highlights a potential lien against the property, which could lead to its sale to cover debts.

The plant's environmental impact has also been a subject of concern. It was designated a Superfund Site in 2008 due to hazardous chemical contamination. A recent federal study revealed that the plant's emissions contributed to increased particulate matter levels in the Wasatch Front area during winter inversions.

While US Magnesium remains hopeful that the layoffs will be temporary and the plant will resume operations when market conditions improve, the future of the facility remains uncertain. The company's decision underscores the volatility of the mining and chemical industry, where market fluctuations can have significant consequences for both businesses and communities.

US Magnesium is a prominent global player in the magnesium industry, actively involved in every stage of the process, from technology and refining to electrolysis and recycling. As the largest primary magnesium producer in North America, the company has been operating on the Great Salt Lake since 1972.

US Magnesium is dedicated to sustainable operations and has consistently invested in increasing production capacity while minimizing environmental impact. By employing cutting-edge electrolysis technology and harnessing solar energy, the company significantly reduces air emissions and energy consumption.