Tidal Metals Signs Chlorine Offtake MOU, Advancing Magnesium-from-Seawater Commercialization

New updates have been reported about Tidal Metals (PC:TIDAL)

Tidal Metals has signed a Memorandum of Understanding with Alexander Chemical Corporation that frames a commercialization path for the chlorine co-product from Tidal’s magnesium-from-seawater technology, a step that materially enhances the economics and scalability of its process. For every ton of magnesium produced, Tidal generates nearly three tons of high‑purity chlorine; under the MOU, Alexander will handle marketing, packaging, and distribution, giving Tidal immediate access to established U.S. chlorine demand in an $8.5 billion market that is under regulatory pressure to replace asbestos-based production capacity following the EPA’s reaffirmed asbestos ban in July 2025. CEO Dr. Howard Yuh emphasized that Tidal’s electrochemical process, developed over eight years of R&D and backed by DCVC, uses only electricity to extract magnesium from seawater or desalination brine, avoiding mining, chemical reagents, and waste streams while targeting structurally low production costs versus China’s dominant, energy-intensive, ore-based supply. This positions Tidal to supply lightweight magnesium—a critical material for automotive, aerospace, robotics, construction, and defense—at scale to U.S. and global customers seeking resilient, non-Chinese sources.

By monetizing chlorine as a domestically produced, environmentally friendlier co-product, Tidal aims to strengthen its cost leadership in both magnesium and chlorine, while supporting U.S. reshoring of critical metals and chemicals. The partnership with Alexander, a specialist in chlorine logistics and distribution, reduces Tidal’s go‑to‑market execution risk on the chlorine side and helps diversify and secure U.S. chlorine supply for applications such as drinking water treatment and industrial manufacturing. Board chair and DCVC operating partner Earl Jones underscored that Tidal’s strategy is to win commodity markets on defensible cost, not subsidies or tariffs, leveraging deep-tech innovation to compete against low-cost Chinese incumbents. As Tidal prepares to scale its magnesium-from-seawater facilities, this MOU signals advancing commercialization, dual revenue streams from magnesium and chlorine, and a clearer path to industrial deployment of its zero‑waste, zero‑carbon metals platform.