Pure magnesium is typically used in the production of aluminum alloys, in die cast automotive parts, in iron and steel desulfurization, as a reducing agent for various nonferrous metals, and in magnesium anodes for the protection of iron and steel in underground pipe and water tanks and various marine applications. Pure magnesium is used in the production of titanium sponge, which is a precursor metal product in the production of titanium metal products.

Qinghai Salt Lake Magnesium Smelter uses the magnesium chloride from the salt lake as raw material to produce magnesium metal by electrolysis process. It is the largest magnesium electrolysis smelter in China and even in the world, with a production capacity of 100,000 t/a of magnesium metal, encouragingly, the primary pure magnesium ingots in accordance with ASTM standards have been supplied to customers.

Magnesium chloride is the main raw material for electrolysis of magnesium metal. Charkhan Salt Lake is enriched with large amounts of magnesium chloride, which is a reserve of more than 4 billion tons, and what's even more remarkable is that around 40 million tons of magnesium chloride is discharged as a by-product from the process of potash fertilizers production every year.

The brine pumped from channels and wells in the salt lake is evaporated and concentrated in solar ponds to produce carnallite, which is used in the production of potash fertilizers. The magnesium chloride solution discharged from the potash production process continues to be evaporated and dried to magnesium chloride powder, which is further purified and dehydrated to be used as a feedstock for the electrolysis of magnesium metal.