CPM Group

Andrew Matheson and Patrick Stratton of CPM Group . Originally produced for MMTA. 

The original article can be found here. 

Hafnium is a minor metal that has become increasingly important to the electronics industry. However, the supply of hafnium is concentrated in only a few countries, leaving the industry vulnerable to disruptions in supply. Currently, hafnium is primarily produced as a byproduct of zirconium, which is used in nuclear fuel rods. This has limited the supply of hafnium, as there are only a few sources for the material. As the demand for hafnium has grown, prices for the metal have skyrocketed, making it difficult for some companies to source the material.

Hafnium is used as a high-k dielectric in semiconductor fabrication. This has become increasingly important as the size of features in semiconductors has shrunk. Hafnium is one of the most stable oxides and has been used by companies like Intel since the early 2000s. The demand for hafnium in semiconductors has increased dramatically in recent years, with up to 30 tonnes per year now being consumed. This has led to a destabilizing demand increase that the market has struggled to manage. Prices for hafnium have increased 10-fold in the last year alone, making it difficult for companies to manage the cost of this critical material.

There are other uses for hafnium, including in gas turbines, nuclear reactors, polymer catalysts, and welding tips. None of these segments is especially price-sensitive, but few areas of demand can sustain a 10-fold increase in critical material cost without some blowback. Superalloy producers are already working on alternatives to hafnium, as they cannot sustain the high costs of the metal.

The supply of hafnium is concentrated in only a few countries, including Russia, China, France, and the United States. The first two countries are off-limits to many industrial hafnium users and governments, leaving supply from Framatome, in France, and ATI, in the United States. This concentration of supply leaves the industry vulnerable to disruptions. Currently, ATI is running its zirconium-hafnium circuit to extract hafnium chloride while Framatome is reportedly struggling to produce an adequately pure hafnium chloride to meet electronics specifications.

The current situation with hafnium highlights the importance of minor metals to modern industries. While these metals may not be well-known, they play a critical role in many technologies. The supply of these metals is often concentrated, leaving industries vulnerable to disruptions. This has become increasingly important in recent years as companies have realized the perils of opaque or concentrated supply chains. The triple assault of Covid, international political tensions, and maritime mishaps has clarified for many firms and governments the need to understand in far greater detail the supply chains they rely on and then to look for ways to diversify risk across a range of factors beyond just cost.

In conclusion, the hafnium situation highlights the importance of minor metals to modern industries. The supply of these metals is often concentrated, leaving industries vulnerable to disruptions. It is critical for companies and governments to understand in detail the supply chains they rely on and to look for ways to diversify risk across a range of factors beyond just cost. As the demand for technology grows, the importance of minor metals like hafnium will only continue to increase, making it essential to find new ways to ensure a stable supply chain.