Ilmenite Market Trends

Growth Drivers

• Growing industrial usage of TiO2: The ilmenite market acts as the primary source of titanium dioxide that serves a variety of applications such as pigments for paints, coatings, plastics, and paper. The growing demand for industrial use of this element has inflated the need for heavy mineral sands including ilmenite. According to a USGS report published in January 2024, the total production of TiO2 in the U.S. was accounted to be worth USD 3 billion in 2023. The report further states that the volume of TiO2 pigment produced in the same year was estimated to be 920,000 tons. This marks evidence of the heightened demand for ilmenite.
• Usage in clean energy generation: The shifting preference for clean electricity sources including geothermal, solar, and wind power requires a massive amount of titanium to build the infrastructure. According to a report published by the World Bank in 2020, wind and geothermal will account for 64% of the total titanium demand from energy technologies. This has further inflated the surge in the ilmenite market. Features such as lightweight, high-strength, and corrosion-resistant have increased the application of titanium in EV energy storage. Thus, the requirement for reliable and sufficient titanium ore such as ilmenite has also enlarged.

Challenges

• Volatility in price and availability: Titanium is one of the most expensive metals, curated from ilmenite. This can create an economic barrier between optimum usage and affordability, impacting the growth in the ilmenite market. In addition, the price of ilmenite may fluctuate due to changes in the demand for the TiO2 pigment industry, which can limit the consumer base of this sector. Such downturns may further affect global trading and pricing strategies.
• Restrictions due to environmental impact: Mining heavy mineral sands such as ilmenite can present significant harm to the environment. This may also result in habitat destruction, water contamination, and high energy consumption. Thus, the regulatory framework built to maintain sustainability may create pressure on companies to mitigate these issues. This can create supply disruptions or additional production expenses, preventing investors from participating in the ilmenite market.