Magnesium alloys have the potential to reduce the mass of transportation systems however to fully realize the benefits it must be usable in more applications including those that require higher strength and ductility. It has been known that fine grain size in Mg alloys leads to high strength and ductility. However, the challenge is how to achieve this optimal microstructure in a cost effective way. This work has shown that by using optimized high shear deformation and second phase particles of Mg₂Si and Mg_xZnZr_y the energy absorption of the extrusions can exceed that of AA6061. The extrusion process under development described in this presentation appears to be scalable and cost effective. In addition to process development a novel modeling approach to understand the roles of strain and state-of-strain on particle fracture and grain size control has been developed.