Niobium, a ductile and refractory metal known for its heat and corrosion resistance, has largely remained unnoticed in the commodities market. However, its significance as an economic input is substantial, with around 90% of global niobium production directed towards the steel industry. As a micro-alloy with iron, niobium enhances the strength and reduces the weight of steel, making it crucial for construction, oil and gas and automotive applications.
In addition to its use in steel, niobium is alloyed with nickel to create superalloys utilized in high-tech applications, such as jet engine and gas turbine blades. Its versatility extends to other fields, including corrective glasses, jewelry, medical implants and cutting tools. Recognizing its importance, the Australian Government has classified niobium as a critical mineral essential for global economic stability, albeit subject to supply chain vulnerabilities.
Global production landscape
Niobium production is concentrated in just three major mines: Brazil’s Araxa and Boa Vista mines, owned by Companhia Brasileira de Metalurgia e Mineracao (CBMM) and CMOC Group respectively, and the Niobec mine in Québec, Canada, owned by Magris Performance Materials. Together, these operations account for approximately 90% of the world’s niobium output, primarily in the form of ferroniobium, an iron-niobium alloy. In 2023, total global production reached 83,000 tonnes, with Brazil contributing 75,000 tonnes and Canada 7,000 tonnes, according to the US Geological Survey.
Niobium is extracted mainly from the mineral pyrochlore, which is processed to produce concentrates containing 55% to 60% niobium oxide. While columbite, another source of niobium found primarily in Africa, is not processed on-site and is instead sent to facilities that also process tantalum.
Market dynamics
The steel industry’s demand has a significant impact on niobium supply and pricing. In 2023, China’s steel sector reported losses of $5 billion due to reduced output amidst an ongoing property crisis. However, the Chinese government has introduced stimulus measures aimed at boosting the economy, which could help stabilize niobium demand.
As noted by Jean-Sebastien David, CEO of NioBay Metals, the increasing need for durable pipelines—essential for transporting oil and gas—further elevates niobium’s role in manufacturing. The metal’s capacity to withstand high temperatures and pressures makes it indispensable in this sector.
Upcoming projects and production potential
While there are few niobium mines currently operating, several projects are poised to enter production soon. NioCorp Developments’ Elk Creek Project in Nebraska will be the only niobium mine in the US upon its launch in 2026, expected to produce nearly 7,500 tonnes of ferroniobium annually over a 38-year lifespan. In Malawi, the Kanyika Niobium Project is anticipated to start production in early 2026, marking Africa’s first niobium mine.
Other notable projects include the Dubbo Project in Australia and WA1 Resources’ West Arunta Project, which hosts a large niobium resource but is still in the early development stages.
Future outlook
According to Mordor Intelligence, the global niobium market is projected to grow from 106,850 tonnes to 171,490 tonnes by 2029. The sector rebounded in 2021 after pandemic-related setbacks, and ongoing stimulus measures in China, coupled with robust growth in India’s construction sector, could further boost demand.
Innovative applications for niobium in high-tech fields, such as aviation, space and defense, are also being explored. CBMM is actively researching new niobium products, including its potential use in advanced lithium-ion batteries to enhance charging and durability.
As industry players look to expand niobium’s applications and with emerging producers entering the market, niobium could solidify its position as a critical metal for the future.
