Scandium Oxide – Massive Market Potential
When it comes to security of supply, the rare earth scandium oxide is heard of significantly less than classic magnetic metals like neodymium oxide and dysprosium oxide. This is currently changing, as the supply of scandium oxide is indispensable for key economic sectors such as the automotive industry and the production of green hydrogen.
Scandium Oxide Hitherto Mainly from Russia and China
Until now, China, Russia, and Kazakhstan have been the primary producers of scandium oxide. Before the outbreak of the war last year, Ukraine was also involved. Collectively, these countries supplied the world with 15 to 25 tons annually. As this quantity is relatively small and countries of origin like China and Russia could threaten export restrictions, scandium oxide has so far remained a niche market. However, this could soon change as more and more countries recognize the technological potential of this critical raw material.
Material for Aircraft Construction, Lightweight Spacecraft, and Atomic Clocks
Aluminum-scandium alloys are ideal for both aircraft construction and space rockets due to their lightness. A key factor is that this material can be welded, rather than merely riveted like pure aluminum. The weight saved allows rockets to consume significantly less fuel, leading to reduced costs. Furthermore, a new atomic clock powered by scandium has recently been developed. This clock is so precise that it would only lose one second after 300 billion years. This makes the scandium clock significantly more accurate than its predecessor, which loses one second in 15 billion years.
New Mining Projects Specifically Promote Scandium Oxide
New mining projects in many countries could soon bring an end to the niche existence of scandium oxide. Ventures such as that of mining giant Rio Tinto, which has been extracting scandium oxide from titanium waste in Quebec, Canada, since 2022, aim for accelerated production of this rare earth. Another example is the Japanese mining group Sumitomo Metal Mining. This company, part of Japan’s oldest and largest corporate conglomerate, has commissioned the additional production of scandium oxide at its nickel refinery in the Philippines. New scandium projects are also emerging in Wales and the USA. However, even if these efforts are very likely to increase the availability of scandium for Western industry, demand is almost certain to grow even faster.
Huge Untapped Potential in the Automotive Industry and Hydrogen Production
The largest scandium market is currently in China, where many cars are built from scandium-aluminum. Sooner or later, this trend will also reach the automotive industry in Germany, which could lead to an exploding demand. In any case, there is enormous potential here.
An even greater demand is expected in the production of green hydrogen, according to a DERA study. In a sustainable future scenario, the study suggests that by 2040, the demand for scandium oxide could increase to 24 tons, a 2.7-fold increase from the 2018 production of 7 tons.
It can therefore be assumed that the hitherto low demand for scandium will soon increase. With the growing market, prices would also rise.