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 Nutrien Ltd. (NYSE:NTR) 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 bustling financial district with a towering bank building at its center.
Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 32
Nutrien Ltd. (NYSE:NTR), a multinational leader in crop inputs and services, operates through four segments: Phosphate, Potash, Ag Solutions, and Nitrogen. The company supplies a variety of products ranging from fertilizers, crop protection, agricultural services, and seeds. Its product portfolio comprises assorted fertilizers essential for plant growth, including sulfur, calcium, phosphorus, nitrogen, potassium, and magnesium.
Nutrien Ltd. (NYSE:NTR) reported an adjusted EBITDA of $5.4 billion for the year ended December 31, 2024, despite low fertilizer prices. Fueled by stronger-than-expected crop protection margins in North America, the company witnessed a 16% rise in retail adjusted EBITDA. However, due to lower net selling prices and weather-related production setbacks, the Potash and Phosphate segments faced difficulties, with their adjusted EBITDA decreasing. Whereas, the Nitrogen segment generated $1.9 billion in adjusted EBITDA by increasing sales volumes and reducing natural gas costs, maintaining a stable performance.
Furthermore, Nutrien enhanced its upstream business by growing fertilizer sales volumes by nearly one million tons compared to 2023. Nutrien Ltd. (NYSE:NTR) also made advancements in potash segments and achieved a 35% automation rate while working toward its 40-50% target. Retail enhancement initiatives generated $200 million in cost savings, anticipated to be fully realized by 2025, one year ahead of schedule.
Looking ahead to 2025, particularly in the U.S. corn acreage and potash markets, the company expects strong demand for crop inputs. It has also increased its 2025 potash shipment forecast to 71-75 million tons. Thus, Nutrien Ltd. (NYSE:NTR) remains well-positioned for growth, despite the possible tariff concerns impacting Canadian potash exports to the U.S. To prioritize nitrogen projects, retail network optimization, and potash automation, the company aims to allocate $2.0-2.1 billion in capital expenditures.
As such, Nutrien Ltd. (NYSE:NTR) remains one of the best magnesium stocks to buy, with stable dividends and ongoing share repurchases, positioning itself for sustainable growth in 2025 and beyond.
Overall, NTR ranks 5th on our list of best magnesium stocks to buy right now. While we acknowledge the potential of NTR, 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 NTR 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.