Deposits

CBMM Araxá - Brazil

CBMM’s (Companhia Brasileira de Metalurgia e Mineração) Araxá niobium deposit is carbonatite-hosted and consists of primary ore (1.5% Nb2O5) in the core, and residual material (2.5-3% Nb2O5); currently producing ~75% of world consumption.

China Molybdenum - Brazil

Brazilian mines hosts 602.9 million tonnes of niobium ore resources with an average grade of 0.43%.  Mine is currently producing ~9,000tpa of niobium metal contained in ferroniobium representing ~15% of world consumption.

Niobec - Québec, Canada

The Niobec underground mine has been operating for 30 years and is North America’s only source of pyrochlore, currently producing ~5,000tpa of niobium metal contained in ferroniobium; 8-10% of world consumption.

New Applications

Niobium is at the forefront of numerous new-age technologies including gas and wind turbines, medical imaging, particle accelerators, space travel, and in the manufacture of high-performance and ultra-safe ultra-rapid rechargeable batteries for electric vehicles.

Quantities of niobium are being used in nickel, cobalt, and iron-based superalloys for such applications as jet engine components, gas turbines, rocket subassemblies, turbo charger systems, heat resisting, and combustion equipment. These superalloys were used, for example, in advanced air frame systems for the Gemini program and in the main engine of the Apollo Lunar Modules, and more recently in the  liquid rocket thruster nozzles of the Melin Vacuum engines developed by SpaceX for the upper stage of its Falcon 9 rocket.

The use of niobium in rechargeable batteries is an exciting development for niobium. Toshiba’s next generation rechargeable battery for electric vehicles features a niobium anode, allowing for higher performance, longer-life, quicker charging, and safer batteries, and it is expected to become the industry standard.

Market

According to the data of Roskill, the CAGR of global niobium consumption reached 5% from 2010 to 2019, and the import growth of niobium products reached 30% year on year in both 2018 and 2019. A tight vanadium market coupled with the introduction of new rebar standards in China caused ferrovanadium demand (and prices) to spike in 2018. This prompted unexpected levels of substitution. Chinese steel makers started to use ferroniobium in Grade 3 rebar which, coupled with strong demand for ferroniobium in line pipe and automotive applications, meant that imports into China (and exports out of Brazil) reached record highs. 

The COVID-19 pandemic halted the rising demand for ferroniobium in the early part of 2020, however analysts report that demand is returning to more normal levels since mid-year with China largely recovered from the effects of the pandemic.

The latest reports from the World Steel Association forecasts global steel demand to fall by 6.4% during 2020 due to the COVID-19 pandemic but recover in 2021 to near pre-pandemic levels.   The increased growth and demand for higher quality steels is rising as a proportion of total steel demand. In addition, increased usage within the automobile and aerospace industries, particularly in China, India and Japan, increases the demand for niobium at a faster rate than steel output.  Importantly, the need for high purity niobium products is increasing significantly.

Despite the pandemic, analysts are still predicting that demand for niobium will grow at a compound annual growth rate (CAGR) of around 6% during the period 2020 to 2025. Major factors driving the market are:

• increased consumption of niobium in structural steel due to its characteristics of tensile strength and durability for use in bridges, buildings and other large constructions such as hangars and stadiums;

• extensive utilisation of niobium-based alloys in the manufacture of high-performance engines and automobiles; and

• use in new age technologies and military applications.

Lightweight materials and designs have become increasingly important in the manufacture of automobiles, where driving dynamics is a major factor. Additionally, the emerging focus of governments across the world on minimising carbon emissions and enhancing fuel economy has increased the importance of lightweight materials in the production of automobiles. Just one kilogram of niobium in one tonne of steel reduces the weight of the steel product by 10% and improves strength and durability.

These combinations of growth and demand bode well for the demand and price of niobium.  As does the new emerging market for niobium in new-age technologies particularly in the areas of space travel and in the manufacture of high-performance and ultra-safe ultra-rapid rechargeable batteries for electric vehicles. 

Niobium’s unique role in new-age technologies is further illustrated in the niobium-intensive €20bn ITER reactor (International Thermonuclear Experimental Reactor) located in France. This is the world’s largest nuclear fusion project and began its five-year assembly phase in France in July 2020. The 35-nation collaboration is the most complex engineering endeavour in history, and by replicating reactions powering the sun, ITER will demonstrate  commercial-scale generation of nuclear fusion. This reactor could be a revolution in the evolution in the generation of emission-free electricity.