We recently published a list of 13 Best Magnesium Stocks to Buy Right Now. In this article, we are going to take a look at where ICL Group Ltd (NYSE:ICL) stands against other best magnesium stocks to buy right now.

Magnesium is a key material used in various industrial applications. Magnesium chloride is commonly utilized for deicing roads and as an ingredient in fertilizers. Beyond its industrial uses, magnesium is essential to U.S. national security, as it supports critical sectors such as aerospace, defense, and steel production.

The automotive sector is one of the top magnesium consumers, owing to its lightweight properties, helping enhance fuel efficiency and vehicle performance. Top automakers have already started to use magnesium instead of steel and aluminum in several components, according to the International Magnesium Association. For example, a magnesium alloy wheel can reduce weight by 32% compared to aluminum. The shift toward lighter materials has helped the automotive sector meet stricter fuel economy and emission standards, transforming magnesium into an essential material in modern vehicle design.

As such, the global magnesium industry has seen strong growth in the past years, with its size forecasted to reach $4.97 billion in 2025, up from $4.67 billion in 2024, at a growth rate of 6.4%, as per The Business Research Company. This growth has primarily been driven by the rising demand for lightweight materials in the automotive industry, the increasing adoption of magnesium alloys in aerospace applications, and its widespread usage in medical implants as well as consumer electronics. The industry’s growth is also supplemented by government initiatives promoting magnesium.

Furthermore, magnesium has broader implications for efficiency due to its ability to reduce vehicle weight remarkably. According to estimates by the U.S. Automotive Material Partnership, using 150 lbs of magnesium instead of 500 lbs of steel, or 90 lbs of magnesium instead of 150 lbs of aluminum can help reduce vehicle weight by 15%. This property can save over 5 billion gallons of fuel by 2030 as magnesium gets integrated into 25% of the vehicles in the U.S. Such positives add to magnesium’s role in the shift of industry toward sustainability and cost efficiency.

Additionally, the increasing demand for battery electric vehicles (BEVs) further cement magnesium’s market. According to S&P Global Mobility, BEV sales worldwide are expected to reach 15.1 million units in 2025, a 30% surge from 2024. These sales would account for 16.7% of total light vehicle sales. As the automotive market shifts toward prioritizing weight reduction to increase battery range and efficiency, magnesium alloys are anticipated to play an important role in vehicle design.

Apart from the automotive sector, emerging trends in the magnesium market are powering innovation across sectors. Medical applications are driving the development of new magnesium-based materials, including biodegradable implants that dissolve naturally in the body, leaving no residue. This development could revolutionize the medical industry, providing more sustainable and safer options to traditional implant materials.

Additionally, as the world moves toward sustainable and recyclable materials, magnesium’s appeal is increasing in various sectors. The environmental impact of magnesium is expected to lower, as advancements are being made in magnesium recycling technologies, in line with global sustainability goals while potentially driving cost efficiency. The magnesium recycling market is expected to reach $1.03 billion by 2032, up from $558.8 million in 2023, increasing at a CAGR of 7.1%, according to Custom Market Insights. Such growth points toward the increasing role of recycled magnesium in addressing industrial demand, as well as reducing dependency on primary extraction.

Magnesium holds an essential position in the automotive and aerospace industries, driven by its high strength-to-weight ratio and high melting point. Around 70% of global magnesium produced is being used for alloy manufacturing currently, adding to its importance in structural applications. Thus, as various sectors look to move toward lightweight, durable, and eco-friendly materials, magnesium’s role is expected to grow in the global market, strengthening the trajectory of its long-term growth.

Our Methodology

To come up with our list of the 13 Best Magnesium Stocks to Buy Right now, we first identified companies with significant exposure in the magnesium industry. This exposure is measured through magnesium mining, refining, or production of magnesium-based materials. We then shortlisted stocks on the basis of the number of hedge funds invested in them as of Q4 2024, using Insider Monkey’s hedge fund database. The top stocks are the ones with the highest hedge fund interest.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

ICL Group Ltd (NYSE:ICL)

Number of Hedge Fund Holders: 9

ICL Group Ltd (NYSE:ICL) operates in the specialty minerals and chemicals industries, with a focus on industrial products, potash, phosphate solutions, and growing solutions. The company plays an important role in the magnesium industry, producing magnesium and magnesium alloys, as well as related by-products like chlorine and sylvinite. The company is also a supplier of magnesium chloride and magnesia-based products for industrial applications.

Overcoming market challenges, ICL Group Ltd (NYSE:ICL) reported financial results for the year ended December 31, 2024. With an adjusted EBITDA of $1.47 million and sales of $6.84 billion, it posted a margin of 21%. The company’s specialty-driven businesses helped offset a 24% decrease in potash prices, as they contributed 70% to its annual EBITDA. On the other hand, Magnesium-related sales also remained stable within the potash segment, which generated $1.65 billion in revenue as potash sales reached 4.6 million metric tons.

Moreover, ICL Group Ltd (NYSE:ICL) gained from increasing potash prices, especially in the U.S., where prices saw a 15% increase. The pricing is expected to receive further support due to Chinese and Indian contract negotiations. However, pricing in Q1 may not fully reflect these changes as the company operates under existing contracts, and the company is strategically managing sales in order to maximize price improvements.

Furthermore, it expanded its specialty phosphate business, surging its market share, while the global phosphate market grew by 2-3%. Weak WPA prices were offset through the help of higher sales volumes, particularly in food, pharmaceutical, and cement applications. The company benefited from antidumping duties on TCPP imports from China, especially in Europe, where Chinese imports are being replaced by sustainable product alternatives. A similar review is being done in the U.S., where customers are already transitioning to ICL’s products.

Regardless of the operational challenges caused by the Israel conflict, ICL Group Ltd (NYSE:ICL) has improved supply chain resilience and enhanced efficiency at key production sites. The company is also monitoring investments in lithium-iron-phosphate (LFP) battery material in response to increasing energy storage demand.

Looking ahead, the company is expecting steady magnesium demand, recovery of the potash market, and continued expansion in specialty minerals. ICL Group Ltd (NYSE:ICL) is laser-focused on improving efficiency and growing its portfolio for specialty products in order to navigate industry variability and drive long-term profitability. As such, it is among the best magnesium stocks.

Overall,ICL ranks 12th on our list of best magnesium stocks to buy right now. While we acknowledge the potential of ICL, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ICL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.