Evolving Metallurgy
Civilization has been built upon its metal use, from the Bronze and Iron Ages to the modern era. While today, the most commonly used metals are steel and aluminum, others are required for advanced technology.
For example, tungsten, the hardest metal on earth, is crucial in semiconductors, weaponry, and rocket engines, as we explored in “Tungsten – The Secret High-Tech Metal“. Or antimony, a key component of ammunition, photovoltaic glass, and infrared sensors, as we discussed in “Chinese Restrictions on Antimony Exports Highlight The Strategic Importance of this Metalloid”.
Another important metal is titanium. The metal was actually discovered a while ago in 1791, with the first pure titanium produced in 1910. But it is in modern times that it went on to be used in aerospace, chemical industry, medical implants, jewelry, and consumer electronics.
As our technology keeps evolving and geopolitical tensions run high, investors should pay attention to this less often-discussed metal.
Titanium’s Unique Physical & Chemical Properties
A key part of titanium’s usefulness is its high strength-to-weight ratio. Titanium is 60% denser than aluminum but more than twice as strong as the most commonly used aluminum alloy. It is also stronger than steel for the same weight, promoting its use in situations where weight is a key concern, like aerospace applications.
Titanium also has a very high melting point of 1,668 °C (3,034 °F), making it very resistant to heat. This is also why it was not very useful until modern times, with advanced enough smelters to refine and shape titanium into useful forms only invented after WW2.
Titanium is very resistant to corrosion, making it a good material in environments like seawater.
The U.S. Navy is incorporating Titanium in many of the department’s vessels for onboard equipment such as tanks, piping, doors, and hatches due to escalating maintenance and repair costs caused by extremely harsh seawater environments.
Titanium.com
It is also well tolerated by the human body, making it a good option for bio-implants.
Titanium Production
An advantage of titanium is that compared to other high-resistance metals, it is relatively abundant. The 2 primary minerals which contain titanium, rutile, and ilmenite, make up 24% of the earth’s crust. Overall, it constitutes 0.44 percent of Earth’s crust.
So titanium is not overly much rare or hard to produce, making it a material for which mass industrial use can be realistically adopted. Because titanium is quite reactive at high temperatures, mass production was a challenge until new processes were invented in the 1950s.
Ilmenite (FeTiO3) or rutile (TiO2) is treated at red heat with carbon and chlorine to yield titanium tetrachloride, TiCl4, which is fractionally distilled to eliminate impurities such as ferric chloride, FeCl3.
The TiCl4 is then reduced with molten magnesium at about 800 °C (1,500 °F) in an atmosphere of argon, and metallic titanium is produced as a spongy mass from which the excess of magnesium and magnesium chloride can be removed by volatilization at about 1,000 °C (1,800 °F).
Britannica
Because of its high melting point and its difficult refining process, producing titanium is more energy-intensive than steel. It is also harder to forge and solder, making it overall more expensive. Titanium is generally available at prices around $35-50/kg, compared to $1.5/kg for stainless steel.
This price difference is why it is not adopted for applications where its unique properties are not needed, such as steel-making structural materials for construction, ships, etc. Titanium alloys can also be produced by mixing titanium with copper, iron, or manganese.
Titanium Overview
Titanium Market
Titanium is a $26B market expected to grow to $47B by 2023, or a 6.5% CAGR.
Source: Precedence Research
43% of titanium is used in Asia Pacific, followed by 30% in North America and 19% in Europe.
Source: Mordor Intelligence
Metal Or Dioxide?
Among the applications of titanium, we should distinguish between titanium metal and titanium dioxide.
Titanium dioxide (TiO2) consumes 95% of titanium ore mined and is used as a strong white permanent pigment in paints, paper, toothpaste, and plastics. This pigment is resistant to sunlight and chemically inert.
Source: Britannica
It can later be mixed with pigment to create vivid colors and paints.
These optical properties are the reason why it is also used in sunscreens, thanks to its ability to reflect and absorb UVs.
Source: Chemours
A Strategic Metal
In its pure metal and alloy form, titanium is valued for its resistance (to heat, corrosion, and mechanical stress) and low density compared to steel. Due to its price, this is mostly the niche where it is confined for now.
Aerospace & Military
This is by far the most strategic application and the one most discussed.
Titanium alloys mixing the metal with aluminum, molybdenum, and iron are used in aircraft, spacecraft, and missiles. Depending on the use case, the main reason can be weight or heat resistance.
Lockheed A-12 – the first plane made of 93% titanium – Source: AirVectors
For the same reason, it is also used in armor plating and sub-components of weapon systems.
The corrosion resistance also makes titanium a material of choice for hulls of ships, submarines, and other structures exposed to seawater.
This is true in military applications, but also civilian, with Airbus and Boeing very large users of titanium for their latest models of airplanes. This is especially important as the demand for fuel-efficient aircraft is growing from cost-constraint airlines and growing carbon taxes.
Industrial uses
Here, too, the extreme heat and corrosion resistance make titanium important for key applications. For example, titanium is used for piping and tanks in desalination plants, allowing the pipes to resist corrosion by the salt (especially concentrated brines produced in the desalination process).
The same resistance to corrosion is valuable in chemical processing equipment and to heat in heat exchangers. It is also popular for corrosion-resistant uses in the oil & gas industry.
Overall, applications where durability and safety are paramount also use titanium to reduce risks and increase the lifespan of the material.
Consumer Goods
Because of its low weight and durability, titanium metal and titanium-based alloys are used in many high-end consumer products. This includes, for example, golf clubs, laptops, bicycles, climbing equipment, and crutches. It is also used in jewelry, notably rings for men.
Source: Gthic
Medical Uses
Titanium metal connects well with bone and is known to create very little reaction with the body’s tissues and immune system. This has made it the best metal for joint replacements (especially hip joints and knee replacements) and tooth implants.
Source: MW Dental Center
The extra toughness is also appreciable for joint replacement, as it limits the wear of the implant.
Sustainability
The durability of titanium gives it an extended lifespan. Combined with excellent recyclability, this makes titanium a rather eco-friendly choice when it comes to metals.
It can also be occasionally used in applications like wind turbines for its resistance. It could also be useful for new designs of rechargeable batteries.
Geopolitics
Due to its importance in aerospace and military applications, titanium metal has for a long time been considered a strategic metal.
The use of the metal was pioneered by the Soviet Union, and later on adopted by the US and its allies.
Titanium was considered a strategic material throughout the period of the Cold War by the U.S. government. The government, namely the Defense National Stockpile Center, maintained a large stockpile of titanium sponges until it was finally depleted in the 2000s.
Production By Country
Today, titanium is mined mostly in China, Mozambique, and South Africa, followed by Norway and Canada.
Its refining into titanium sponge, the component for titanium dioxide, titanium metal, and titanium alloys, paints a different picture. Here, China is far ahead, with a production of 120,000 metric tons in 2023. It is followed by Japan at 35,000 metric tons, Russia at 27,000 metric tons, and Kazakhstan at 16,000 metric tons.
Source: World Population Review
Significantly, titanium is excluded from import bans from Russia in the aftermath of the Ukraine war. This totaled $375M worth of titanium import in 2023.
“We think sanctioning titanium from Russia would be sanctioning ourselves.”
Guillaume Faury – Airbus Chief Executive
This is because Western countries lack a significant domestic production of titanium and cannot rely solely on Japan for their needs.
“Russia could shut off the flow of these … materials and leave companies critical to national defense and civil aviation scrambling.”
William George – director of research at ImportGenius for the Washington Post
Investing In Titanium
Titanium is a material mostly known to the public as some high-tech material in gold clubs or hip replacement implants. But it is actually omnipresent, first as paint and pigment everywhere, then as a key material in planes, weapons, factories, pipes, etc.
When titanium was considered at risk of deficit due to a possible ban on Russian exports in early 2022, it experienced a sudden spike in price. Prices have since come back down to pre-war levels but above the 2018-2021 trend.
Source: Trading Economics
Of course, escalating trade tensions with China could have an even larger impact. Considering the recent reduction of exports by China of strategic rare earth minerals and antimony, this could be the next strategic metal exposed (together with tungsten).
While it is actually possible to directly buy titanium for investment in physical metal form, it is not really considered a precious metal or investment metal the way gold, silver, or even platinum are.
Source: Hero Bullion
Overall, titanium markets have been in a situation of under-supply for a while, with expectations that the situation will last and worsen in the years to come, with 3 million tons of ilmenite new supply needed to meet the demand by 2027.
Source: Kenmare Ressources
You can invest in titanium-related companies through many brokers, and you can find here, on securities.io, our recommendations for the best brokers in the USA, Canada, Australia, and the UK, as well as many other countries.
If you are not interested in picking specific titanium-related companies, you can also look into ETFs like VanEck Rare Earth and Strategic Metals ETF (REMX) which will provide a more diversified exposure to capitalize on the mining industry.
Or you can read our dedicated articles about “Tungsten – The Secret High-Tech Metal“ and “Chinese Restrictions on Antimony Exports Highlight The Strategic Importance of this Metalloid”, which present similar opportunities and conditions of long neglect followed by urgent renewed geopolitical importance of these strategic metals.
Titanium Companies
1. Kenmare Resources (KMRPF)
This mining company owns the Moma Titanium Minerals mine in Mozambique, one of the largest deposits of titanium on Earth. It is estimated to contain as much as 14.4 billion tons of ore reserve, with 2.6% ilmenite.
The mineral resource base at Moma is sufficient to support production at current rates for more than 100 years and provides significant opportunities for further mine expansions in the future to meet the increasing demand for these products.
Kenmare Ressources
The company represents 7% of the world’s titanium feedstock supply.
Source: Kenmare Ressources
In recent years, the company has been growing its dividends strongly, thanks to record profits from the price spike in 2022.
It also repurchased 15.6% of total shares in 2021 (for $83M) and 5.9% of total shares in 2023 (for $30M).
Source: Kenmare Ressources
Investors in Kenmare will need to be aware of the geographical location of the main mine, with Africa being far from the best mining jurisdiction, as well as the inherent price instability of niche commodities like titanium.
2. ATI – Allegheny Technologies
AIUT is a producer of critical metals for the global aerospace and defense markets. This includes titanium, as well as steel, nickel, cobalt, zirconium, tungsten, niobium, hafnium, tantalum, & vanadium alloys.
In 2024, the company has seen a 45% year-to-year growth in titanium sales, driven by strong aerospace demand. It also saw a 47% growth in the medical markets and 12-18% in defense, specialty energy, and electronics markets.
Overall, jet engines airframe (civilian/commercial) and defense made up the largest part of the company’s business.
Source: ATI
By the end of the year, it will have increased its titanium melting capacity by 45%.
The company is a key part in re-industrializing and localizing in the US strategic supplies like titanium, together with competitor Titanium Metal Corporation.
This is an important trend for the company, as secure supply is now considered a must by aerospace (including civilian) and defense companies, after more than a decade of complacency by using Russian and Chinese supply instead.
This puts ATI in a good position to expand its activity in the future and provide investors with an hedge against the phenomenon of deglobalization.
3. Chemours
Chemours is a spin-off from chemical industry giant DuPont, based in the US. It is a specialist in titanium oxide production, as well as the producer of Teflon. It also produces refrigeration gases.
By far, titanium is the main part of the business, with more than half of the company’s revenues.
Source: Chemours
Chemours mostly sells to North America (45%) followed by Asia Pacific (24%) and EMEA (20%).
The refrigerant section contains the older Freon, and the newer Opteon with much less emission of greenhouse gases.
The advanced material segment includes anti-adhesive Teflon, flexible material Viton, high-performance lubricants Krytox, and membrane Nafion.
Source: Chemours
Nafion can be used for water purification and desalination, as well as hydrogen production and utilization in fuel cells.
Teflon applications go much beyond non-stick pans and include supporting the production of wind turbine blades, as a binder in EV batteries, seal to reduce CO2 emissions, or as a binder in electrodes for hydrogen production.
Teflon has even been recently approved for use in semiconductors. This makes Chemours the only U.S.-based PFA resin manufacturer, crucial for a secure supply chain under the CHIPS and Science Act.
Overall, Chemours is a highly specialized chemistry company, with a strong leadership in its segment inherited from its former parent company DuPont.
In addition to titanium, it also holds some valuable specialty chemical IP. From emissions refrigerant to hydrogen production and utilization, Chemours is likely to benefit from the trends of reduction in carbon emissions, as well as the world’s growing demand for paints and colorants.
