US Magnesium Layoffs: Firm Fires 85% Of Employees Amid Difficult Times

A 2023 study by the National Oceanic and Atmospheric Administration (NOAA) found that the company’s operations were responsible for up to 25 per cent of smog along the Wasatch Front

US Magnesium Layoffs: The violations included the release of hydrochloric acid, chlorine, and particulate matter into the air

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US Magnesium, a company that extracts magnesium and lithium from the Great Salt Lake's brines, has announced plans to lay off 186 workers and temporarily halt operations at its Tooele County plant.

In a statement, the company explained that the layoffs are a direct result of a significant drop in lithium carbonate prices over the past two years, which it attributes primarily to oversupply from foreign producers. Lithium carbonate is a key component in the production of clean, rechargeable lithium-ion batteries, which are crucial for powering devices such as phones, computers, cameras, and electric vehicles. The layoffs affected 85 per cent of the company’s current workforce.

“Future recovery in pricing is expected to occur and plant operations would resume with a normal pricing structure of the project. As such, we are hopeful that these layoffs will be temporary in nature, but we are unable to guarantee this,” a September notice to the Department of Workforce Services read.

US Magnesium is North America's largest producer of magnesium, a key metal used in alloys, electronics, and automotive parts.

A 2023 study by the National Oceanic and Atmospheric Administration (NOAA) found that the company’s operations were responsible for up to 25 per cent of smog along the Wasatch Front, significantly contributing to the severity of summer ozone pollution and winter inversions.

Additionally, US Magnesium has a history of environmental violations, having exceeded emissions limits for nearly a decade. Between 2013 and 2023, the Utah Division of Air Quality issued 30 citations to the company for non-compliance with state environmental regulations.

The violations included the release of hydrochloric acid, chlorine, and particulate matter into the air.

In 2023, the company reached a settlement with the Utah Department of Environmental Quality (DEQ) for $430,900, which some critics felt did not adequately reflect the seriousness of US Magnesium’s environmental infractions.

The settlement followed a $50,000 donation from US Magnesium’s parent company, The Renco Group, to Utah Governor Spencer Cox. While the governor appoints the director of the DEQ and members of the Air Quality Board, a spokesperson for Cox stressed that he “has no authority over the Air Quality Board or its decisions” and had not discussed the settlement with them.

Levi Sheffield, the company’s labor relations representative, confirmed that most of the affected employees had their last day of work on Monday, according to a Markets Today report.