U.S. Magnesium Announces Layoffs at Utah Lithium Production Site
More than 180 employees are being laid off at U.S. Magnesium, the only company commercially producing lithium in Utah. On Monday, the Utah Department of Workforce Services announced 186 layoffs from U.S. Magnesium's Salt Lake City division. The layoffs are part of the Worker Adjustment and Retraining Notification (WARN) Act, which requires certain employers to provide a 60-day notice before a mass layoff.
U.S. Magnesium operates two facilities in Utah: one in Tooele County and another in Salt Lake City. The layoffs are occurring at the Salt Lake City division, affecting the workforce in this region.
According to the Utah Department of Natural Resources, lithium has been commercially produced in Utah since 2020, with U.S. Magnesium as the sole extractor of the metal in the state. Lithium production is currently a byproduct of magnesium metal production from Great Salt Lake brines.
Lithium is a critical metal used in batteries, ceramics, and glass. Its demand has surged in recent years due to its widespread application in rechargeable batteries for electric vehicles, electronic devices, and energy grid storage. U.S. Magnesium is one of only two companies in the continental United States producing lithium on a commercial scale.
In 2022, the U.S. Department of Energy funded 12 projects aimed at increasing domestic lithium production, reflecting growing concern about lithium supply security. This issue is a top priority for technology companies in Asia, Europe, and North America, as indicated by a U.S. Geological Survey summary.
