Scandium – an overview
Where it found and what is is it used for? Scandium occurs at roughly 10 parts per million in the earth´s crust, mostly in silicates. Historically, however, for a number of reasons it has been very difficult to extract and process economically. Like many of the REEs, scandium has some extraordinary properties. Alloyed with aluminium, it produces one of the lightest, strongest alloys in the world one with significantly improved durability, plasticity, and weldability and corrosion resistance. Aerospace could be the biggest demand driver because anything that adds strength while saving weight is invaluable. Airbus estimates that aircraft made from welded aluminium scandium zirconium (AlScZr) alloy would be 15% lighter and 15% cheaper to build compared to present materials. Another promising use for scandium is when Scandium Stabilized Zirconium is used in place of Yttrium Stabilized Zirconium in Solid Oxide Fuel Cells. It lowers operating temperatures, improves performance and extends the operational life of the fuel cell. This is due to scandium`s high ionic conductivity. A third use for scandium that is set to grow is in lighting. Scandium being combusted on the sun is what gives us daylight. Today, lighting on film sets and in some stadium lighting applications employs scandium to mimic this natural light. Next generation, environmentally friendly light bulbs are increasingly using scandium for this reason. It is also used in high-end sporting goods such as bicycle frames, baseball bats and golf clubs. However, it is important to keep in mind that today`s advanced computer analytics and modelling software allow metallurgists to test combinations of specialty metals more rapidly than ever before, which is leading to the design of ever more efficient products at ever lower prices. In short, these laboratories are finding more uses for scandium every year. Exactly how much Scandium is produced and what is the going rate? Scandium is usually marketed in the form of scandium oxide (Sc2O3), but the market is decidedly opaque and we certainly prefer the pure metal. Our current price is about ₏70,000/ kg depending on quantity required. Unlike other rare earths the more you buy the more expensive it gets. However, the miniscule amounts of scandium consumed per application would render it utterly price inelastic because the competitive advantage gained from its use at minimal additional cost far outweighs any other considerations if only sufficient quantities could be reliably delivered to the market to enable its widespread use. Today`s erratic supply, which varies between 2-10 tons per annum (tpa), simply isn`t enough to warrant revamping production lines for its use. For example, word on the street is that Bloom Energy, a California company that developed the Bloom Box, a 20,000 lb., solid-oxide
fuel cell, would like to get its hands on 30 tons of scandium each year for its next generation fuel cells. Will potential demand for alternative energy and aerospace uses be enough to fuel increased Scandium exploration and mining? The scandium available has been primarily sourced from those bastions of free market capitalism, Russia, Ukraine and China. Russian stockpiles are thought to be between 12-20 tons, but may be lower. We think a secure supply of scandium is unlikely in the near future. New mines are being developed in far north Queensland and New South Wales respectively. These Australian deposits are unusually large, high-grade deposits grading in excess of 165 grams per ton in relatively isolated mineralogical settings however this is likely to be 7-10 years away from production. Natural weathering over millions of years has leached away most other minerals, including yttrium and REEs. The fact that no uranium or thorium is present coupled with every increasing global demand makes the potential scandium economically recoverable. What companies could deliver Scandium in consistent enough quantities to nurture a growing industrial demand? Rare Metal Brokers are uniquely positioned to deliver scandium to industry, investors and to be instrumental in the growth of a whole new market for this remarkable metal. Most recently, businesses and individuals outside of industry are beginning to buy substantial quantities of rare metals as a tangible asset used to combat the negative effects of inflation and the devaluing of currency. It was because of this increasing scarcity within the commodity markets that Rare Metal Brokers decided to bring the investors and the industry together, “In four or five years at the peak of the shortage if reached, the investors will be able to provide those materials to the industry. In return, the industry could contribute to the storage costs and receive advance rights for those rare metals� said a key analyst close to the situation.