China Nuclear Capacity Expansion Strengthens Demand for Hafnium and Zirconium

the China Nuclear Energy

China nuclear capacity continues to expand as the country retains the global lead in nuclear power construction. China currently operates 60 commercial nuclear power units and has another 36 units under construction, according to the China Nuclear Energy Industry Association.

The scale of China nuclear capacity growth is significant for energy security and industrial materials demand. Projects under construction in China account for more than half of global nuclear capacity currently being built.

China nuclear capacity is also set to grow further because 16 additional units have already received approvals and are awaiting construction. The country has started construction on two nuclear power units so far this year and plans to complete seven units within the year.

The country’s installed nuclear power capacity has reached 125GW, ranking first globally, according to the association. This keeps China at the centre of global nuclear construction and strengthens downstream demand for strategic metals used in reactor systems.

Nuclear Buildout Raises Demand for Hafnium and Zirconium

China’s nuclear expansion is important for several minor metals, especially hafnium and zirconium. These materials sit deep inside the nuclear supply chain, but they are critical to reactor performance and safety.

Hafnium is mainly used in control rods for nuclear power plants. It has strong neutron absorption properties, making it valuable for regulating fission reactions inside reactors.

Nuclear-grade zirconium sponge is used as a core structural material for fuel assemblies. Zirconium is valued in nuclear systems because it has low neutron absorption and strong corrosion resistance under reactor operating conditions.

The growth in nuclear construction therefore creates direct demand for high-purity and nuclear-qualified materials. These materials require strict processing, quality control and certification, which makes supply more specialized than ordinary industrial metals.

China’s large buildout also creates a strategic demand signal for upstream zirconium minerals, zirconium sponge, hafnium separation and downstream nuclear components. As more units move from approval to construction and commissioning, material procurement will become more important.

Export Controls Tighten Strategic Minor Metals Supply

The nuclear sector is not the only source of demand for hafnium. Industrial gas turbines also use hafnium in high-performance alloy systems, creating additional competition for supply.

Prices have risen because of stronger demand from nuclear power and industrial gas turbine sectors, while supply has tightened because of reduced exports from China. This makes hafnium a more visible strategic material in global industrial supply chains.

China has included hafnium in its strict dual-use item export control scheme. This constrains global availability and increases supply risk for users outside China.

The issue highlights a broader trend in critical materials. Small-volume metals can become major chokepoints when they support high-value sectors such as nuclear power, aerospace, defence, turbines and advanced manufacturing.

For global nuclear developers, the supply chain challenge extends beyond uranium. Reactor construction also depends on certified zirconium, hafnium, specialty alloys, forgings, control rod materials and precision components.

China’s nuclear construction lead therefore has two effects. It supports domestic energy security while also increasing China’s influence over the strategic materials used in nuclear and high-temperature industrial applications.

The Metalnomist Commentary

China’s nuclear buildout shows how energy security is becoming a materials security issue. Hafnium and nuclear-grade zirconium may be small-volume markets, but they are critical bottlenecks for reactors, turbines and strategic industrial systems.