A new steel mold gravity casting magnesium alloy of low-cost, high strength, and high ductility has been developed and studied. This new magnesium alloy, which is designated as IMR-41, exhibits high strength (Yield Tensile Strength≈145 MPa, Ultimate Tensile Strength≈280 MPa) and high ductility (Elongation≈8%) at room temperature. The alloying elements are inexpensive ones and the cost of IMR-41 is similar to AZ91 series. The influence of small X element addition and heat treatment on the microstructures and mechanical properties are discussed. The IMR-41 combines the virtues of AZ91 series and AM60 series to some extend and shows great potential application on wheels of lightweight vehicles or motorcycles, etc. which require high strength and high ductility simultaneously.