China Discovers Major Niobium Deposit in Hubei, Aiming to Reduce Heavy Dependence on Brazilian Imports

China Niobium

New 2.5mn t Resource Could Transform Domestic Supply Chain, But Environmental and Cost Barriers Remain

Hubei’s Niobium Discovery Could Shift Global Trade Dynamics

China has uncovered a massive niobium oxide deposit totaling 2.538 million tonnes in Zhushan and Zhuxi counties of Hubei province, according to Hubei Daily. This single deposit could account for 54% of China’s total niobium reserves, potentially making Hubei the nation’s top niobium base.

Until now, China has detected 4.7 million tonnes of niobium resources, primarily in Inner Mongolia, Hubei, Jiangxi, and Shaanxi. However, the low grade and complex impurities of most domestic deposits have long hindered large-scale extraction, pushing China to rely heavily on imports of ferro-niobium.

China’s Heavy Reliance on Brazil for Ferro-Niobium Faces Challenge

In 2024, China imported 42,900 tonnes of ferro-niobium, up 9.7% year-on-year, with 96% sourced from Brazil—the global leader in ferro-niobium production. Notably, China accounted for 45% of Brazil’s total exports of the alloy last year.

The newly discovered Hubei resource, if economically viable, could significantly cut reliance on Brazilian supply. The Ministry of Natural Resources, China Geological Survey, and Hubei government aim to extract at least 929,000 tonnes using advanced recovery technologies.

Supply Chain Tightness and Rising Prices Spur Strategic Moves

Tight global supply has kept niobium concentrate prices high, with 50% grade material reaching $19–20/lb cif in February 2024—a near three-year high, according to SUPERMETALPRICE. This price surge is fueled by booming demand in batteries and superalloys.

Chinese smelters have struggled to secure supply, turning to tantalite with higher niobium content or even ferro-tungsten from Brazil to produce niobium pentoxide. The Hubei discovery comes at a crucial time but faces environmental and cost-related challenges, which could limit short-term development.