Magrathea Metals (Magrathea) secured an offtake and financing agreement with Wogen Resources (Wogen). Under the agreement, Wogen will distribute a portion of the magnesium metal produced by Arkansas Magnesium, a proposed joint venture (JV) between Magrathea and TETRA Technologies (TETRA), and provide up to US$10M in working capital.

The agreement follows the signing of a non-binding term sheet in December 2025 between Magrathea and TETRA to form the Arkansas Magnesium JV that will develop a new magnesium metal project at TETRA’s existing Evergreen bromine facility in southwest Arkansas, USA.

Magnesium extraction at the site would utilise Magrathea’s electrolytic technology, using brine as feedstock, with the project structured as a two-phase development targeting up to 7ktpy by 2029.

The offtake and funding announcement aligns with efforts to re-establish domestic magnesium supply in the USA. Since the closure of US Magnesium’s 63ktpy Rowley plant in 2024 (idled in 2022), the USA has had no primary magnesium metal production, relying on imports and limited secondary availability.

This has left the supply chain vulnerable to volatility amid US–China trade tensions, existing anti-dumping duties, and China’s export controls on dual-use materials, which include high-purity magnesium.

In 2024, Magrathea received US$19.6M in funding from the US Department of War to support the development of its magnesium electrolyser. Following successful purity tests, the electrolyser is now planned for application at the Arkansas project.

Combined with the TETRA partnership, this reflects growing US efforts to strengthen the magnesium supply chain in the interest of national security.

The Arkansas project is in the early stages of development and forms part of TETRA’s “ONE TETRA 2030” strategy.

Therefore, magnesium availability in the USA is expected to remain under pressure over the next five years as ex-China projects continue to face competition from low-cost, large-scale, integrated Chinese supply and ongoing challenges related to upscaling.