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 Intrepid Potash, Inc. (NYSE:IPI) 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).
A farmer holding a handful of potassium chloride-rich soil, surrounded by a lush crop in full bloom.
Intrepid Potash, Inc. (NYSE:IPI)
Number of Hedge Fund Holders: 5
Intrepid Potash, Inc. (NYSE:IPI) is a producer and marketer of potassium, magnesium, sulfur, salt, and water products across three segments – Potash, Trio, and Oilfield Solutions. The company is a supplier of potassium chloride for agriculture, animal feed, and industrial applications, while its Trio segment specializes in fertilizers, combining sulfate, potassium, and magnesium. It also dispenses magnesium chloride for road treatment and industrial usage, alongside brines for the oil and gas industry.
Regardless of a tough pricing environment, the company reported an adjusted EBITDA of $8.6 million for Q4 ended December 31, 2024, up from $7.1 million in the previous year. The company was successful in reducing its adjusted net loss from $5.2 million to $1.4 million, driven by increased production volumes and enhanced cost efficiency. The production of potash for 2024 hit the 295,000-ton mark, an increase of 30% from 2023. Trio hit record sales of 254,000 tons, with pricing surpassing potash for the first time since 2016. Simultaneously, the Oilfield Solutions segment emanated stable growth due to strong demand in the Permian Basin.
Furthermore, Intrepid Potash, Inc. (NYSE:IPI) is furthering its strategic projects to supplement long-term growth. The company is developing HB AMEX cavern to increase potash production, while capital expenditures are expected to remain between $36 million and $42 million for 2025, majorly to sustain core operations. Production by Trio is forecasted to range between 235,000 and 245,000 tons, with higher margins as high demand is expected.
Looking forward, Intrepid Potash, Inc. (NYSE:IPI) looks to gain from increasing potash prices and potential U.S. tariffs on Canadian imports, potentially providing a pricing advantage for domestic producers. The continued strength of its Trio product, which provides essential magnesium nutrients, has well-positioned Intrepid Potash, Inc. (NYSE:IPI) in the specialty fertilizer market. However, for sustained profitability, it needs to maintain production efficiency and cost control.
Thus, the company remains a top pick among the best magnesium stocks to invest in due to its diverse product portfolio and improving financials.
Overall, IPI ranks 13th on our list of best magnesium stocks to buy right now. While we acknowledge the potential of IPI, 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 IPI 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.
