----Interview with Baolin Wang
General Manager
Hongtai Yuanhe Magnesium Co., Ltd.
Hongtai Yuanhe Magnesium is the only company in Fugu with a fully integrated magnesium recycling industry chain, covering raw magnesium, alloy materials, and downstream deep-processed products. We currently have a production capacity of 20,000 tonnes of magnesium ingots, 30,000 tonnes of magnesium alloys, and 2.3 million die-cast parts. Founded in March 2019 with a registered capital of RMB 20 million and located in Laogaochuan Town, Fugu County, the company is committed to improving resource utilization efficiency through industry chain integration and promoting the application of magnesium materials in high-end manufacturing.
Asian Metal: Hello, Mr. Wang. Welcome to Asian Metal’s interview. Could you please first introduce the basic structure and main business directions of Hongtai Yuanhe?
Mr. Wang: Our company specializes in the research and development, processing, and sales of magnesium alloy products. It currently employs more than 100 people. The plant covers an area of approximately 40 mu (about 16 acres) and includes 30,000 square meters of standardized workshop space. The company processes 1.5 million magnesium alloy automotive parts annually. To date, the company has successfully developed more than 20 products, including magnesium alloy cylinder head covers, upper oil pans, oil filter housings, generator brackets, water outlet pipes, magnesium alloy helmets, and magnesium alloy helmet housings. It supplies products on a mass-production basis to domestic automakers such as Zotye, Huatai, Yema, and Dongfeng Xiaokang. The company collaborates with numerous research institutions, including Chongqing University, Lanzhou University of Technology, Lanzhou Jiaotong University, Xi’an University of Technology, Jilin University, and the Shenyang Institute of Metal Research, Chinese Academy of Sciences. It holds core intellectual property rights in magnesium alloy deep-processing technologies and has extensive experience in magnesium alloy product manufacturing. The company has established a dedicated R&D center and continues to pursue technological innovation and new product development. It currently holds seven invention patents and 17 utility model patents. With a total investment of RMB 200 million, the project has completed the construction of four die-casting production lines, one machining line, one micro-arc oxidation line, one impregnation line, one electrostatic spraying line, four alloy production lines, and one magnesium alloy rod casting line. The company now has an annual production capacity of 1.2 million magnesium alloy helmets, 600,000 electric vehicle safety helmets, one million automotive and motorcycle engine parts, 30,000 tonnes of magnesium alloy ingots, and 30,000 tonnes of magnesium alloy rods.
Asian Metal: Magnesium prices have fluctuated at relatively low levels for a prolonged period this year. In a declining price environment, cost control becomes particularly critical. How does Hongtai Yuanhe achieve a cost advantage below the industry average through technological and process innovation, supply chain optimization, and full industry chain collaboration?
Mr. Wang: In terms of cost control, we focus on three main areas. First is industry chain synergy and efficiency enhancement. By extending and integrating the industry chain, we reduce losses at intermediate stages—for example, by directly converting raw magnesium into alloys and deep-processed products—thereby lowering energy consumption and material turnover costs. Second is technological and process innovation. We continuously upgrade our smelting and die-casting processes and introduce automated production lines to reduce manual intervention, improve yield rates, and lower unit production costs. Third is supply chain optimization. Through long-term and stable partnerships with suppliers, as well as centralized raw material procurement, we effectively mitigate risks associated with price volatility. Together, these measures enable us to maintain strong competitiveness even in a low-price environment.
Asian Metal: Persistently low magnesium prices can be a double-edged sword. As the price gap between magnesium and aluminum continues to widen, what impact do you think this will have on downstream demand for Hongtai Yuanhe Magnesium?
Mr. Wang: Low magnesium prices have indeed created favorable conditions for the expansion of downstream applications. The widening price gap between magnesium and aluminum further highlights the cost advantages of magnesium alloys in lightweight applications, particularly in industries with high performance requirements such as automotive, 3C electronics, and rail transportation. We believe that if magnesium prices can stabilize within the current range, this will significantly accelerate the substitution of traditional materials with magnesium alloys and drive sustained growth in downstream demand. In 2025, China’s annual magnesium alloy output is approximately 410,000 tonnes. With the large-scale application of magnesium alloy materials in die-cast components for two-wheeled vehicles and new energy vehicles, we are confident that alloy production will increase by at least 15% by 2026. Hongtai Yuanhe will seize this momentum by firmly advancing its downstream magnesium alloy and die-casting product portfolio, closely aligning with market demand and precisely serving industry applications.
Asian Metal: We have observed rapidly growing demand for lightweight materials in sectors such as two-wheeled vehicles and new energy vehicles. What is your company’s current exposure to these high-growth markets, and what strategies will you adopt to further expand your market share?
Mr. Wang: At present, our business in the new energy vehicle and two-wheeler sectors is growing steadily and has become an important growth driver for the company. Going forward, we plan to further expand our presence in these markets through three key initiatives. First is material performance upgrading by developing high-strength and high-corrosion-resistant magnesium alloys to meet the dual requirements of lightweighting and reliability. Second is cost optimization by offering customers more cost-effective solutions through large-scale production and continuous process improvements. Third is service empowerment by working closely with customers to provide integrated support ranging from material selection to structural design, with the goal of becoming a trusted and value-added supplier.
Asian Metal: Semi-solid forming technology, known for its advantages of high precision, low porosity, and near-net shaping, is increasingly becoming a mainstream process for manufacturing complex magnesium alloy structural parts. High-quality magnesium alloy particles are the foundation of this technology. How is Hongtai Yuanhe progressing in the production and application of alloy particles?
Mr. Wang: In the area of semi-solid forming technology, we have established a strategic partnership with Ningbo Bole Technology to jointly develop magnesium alloy particles suitable for high-end forming applications. We have already built two magnesium alloy particle production lines and are carrying out in-depth research on key parameters such as composition optimization and particle size control, with the aim of providing downstream customers with customized alloy materials featuring high consistency and excellent fluidity.
Asian Metal: What are your expectations for magnesium price trends and processing costs in the first quarter of 2026? What factors do you believe will be the main drivers of price fluctuations?
Mr. Wang: Overall, magnesium prices are expected to remain relatively firm with some volatility in the first quarter of 2026, with mainstream transaction prices likely ranging between RMB16,500-17,500/t EXW D/P. At the same time, magnesium alloy processing fees are expected to have further upside, supported by strengthening downstream demand. The continued strength of aluminum prices and the widening price gap between magnesium and aluminum significantly enhance the cost competitiveness of magnesium alloys in lightweight applications, which is a key factor supporting both magnesium prices and processing fees. In addition, mandatory policies such as the new national standards for electric vehicle energy consumption and the “plastic reduction and weight reduction” requirements under the new national standards for electric bicycles, which will take effect in 2026, are directly encouraging downstream manufacturers to adopt lightweight materials such as magnesium alloys. Meanwhile, the maturation of technologies such as semi-solid forming is driving the application of magnesium alloys from functional components toward higher value-added areas, including automotive body structural parts and robot frames. This is improving the industry’s growth prospects and profitability. Overall, the magnesium industry is transitioning from the bottom of the cycle into a phase of tighter supply-demand balance, with the price center expected to trend upward.
Asian Metal: Please briefly outline Hongtai Yuanhe’s development plans and key priorities over the next three to five years.
Mr. Wang: Over the next three to five years, Hongtai Yuanhe will focus on two main directions. First is new material research and development, with an emphasis on achieving breakthroughs in high-end products such as high-strength and high-toughness magnesium alloys, as well as high-temperature-resistant magnesium-based composite materials. Second, we will continue to expand our application portfolio by actively exploring the industrialization of magnesium alloys in emerging fields, including new energy vehicle structural components, energy storage systems, and wearable devices. Through technology-driven and market-oriented strategies, we aim to transform from a traditional “material supplier” into a comprehensive “solutions provider.”
Asian Metal: Thank you for accepting this interview with Asian Metal. We look forward to Hongtai Yuanhe achieving even greater success in the future.
Mr. Wang: Thank you, Asian Metal, for providing this valuable platform for communication with industry peers. We also hope to take this opportunity to strengthen collaboration across the industry chain, promote innovation and application of magnesium materials, and contribute to the sustainable development of China’s magnesium industry.
