US titanium scrap-sponge ratio set to shift as melters chase margins

Titanium Scrap

The US titanium scrap-sponge ratio is poised to shift as melters chase cheaper inputs in 2026. Premium titanium sponge prices and weak downstream demand are squeezing margins and forcing producers to reconsider melt mixes. As a result, the US titanium scrap-sponge ratio could move decisively toward higher scrap utilization across many grades.

Furnace expansions support higher scrap utilization

Capacity expansions at ATI, Perryman and Timet will give melters more room to adjust the US titanium scrap-sponge ratio. Their projects are expected to add nearly 30,000 t/yr of ingot production capacity once fully ramped, according to Metalnomist estimates. Consequently, scrap utilization capacity could rise by 22pc to 111,215t in 2026 compared with 2024, ELG Utica Alloys’ Nick Corby told the International Titanium Association conference.

However, not every alloy can fully pivot away from sponge, because certain grades still require premium sponge for purity. Grade 5 (6Al-4V) ingot can be melted from 100pc scrap, which encourages a higher US titanium scrap-sponge ratio when prices favor recycled inputs. Importantly, melters can alter the scrap and sponge ratio without major downtime, allowing them to track raw material prices and supply conditions in real time.

Meanwhile, destocking in commercial aerospace could cap the practical impact of these technical options. Boeing and Airbus are signalling another year of subdued orders for ingot and milled products as they normalise inventory. This means melters already grappling with weaker demand may push deliveries out or no-quote dealers on certain grades, even as the US titanium scrap-sponge ratio tilts structurally toward scrap.

Global scrap flows deepen market distortions

Scrap sourcing dynamics will play a critical role in how far the US titanium scrap-sponge ratio can shift. The US accounts for around 95pc of global consumption of aerospace-grade titanium scrap, making it the natural sink for high-grade revert. Imports are crucial, covering more than half of US raw material needs and bridging gaps in domestic generation.

Historically, Europe supplied much of this scrap, reflecting its strong base of forging and machining operations. Long-standing supply agreements and buy-back schemes cemented a circular flow of titanium between the two regions. However, shifts in downstream processing toward Asia are eroding Europe’s share, even as titanium activity in countries like China accelerates.

China is on track to increase global titanium scrap exports by 64pc in 2025 to 5,874t, with most of that likely moving into the US. Officially, the US has only imported 434t of titanium scrap from China this year, US Commerce Department data show. Yet market participants say Chinese-origin scrap often reaches the US via other Asian countries to circumvent 25pc tariffs, complicating visibility.

As a result, the supply chain looks “inconsistent”, with scrap availability not matching lower generation rates caused by delayed aircraft build schedules and OEM stockpiles. Corby noted that imports are expected to exceed exports by 19,460t this year, the widest gap since records began. At the same time, European ferro-titanium consumers face weak steel demand and index-driven price pressure, cutting their appetite for scrap and pushing more material toward US buyers.

The Metalnomist Commentary

The evolving US titanium scrap-sponge ratio highlights how price signals, furnace investments and trade flows interact across the titanium ecosystem. For melters, flexibility in melt mixes is becoming a strategic hedge against stubborn sponge prices and volatile aerospace demand. For scrap generators and intermediaries, rising US dependence and opaque routing via Asia could keep differentials wide — and margins attractive — well into the next aerospace upcycle.

US Titanium Scrap Imports and Exports Decline in 4Q Amid Supply Chain Disruptions

US Titanium Scrap

Titanium Scrap Trade Faces Challenges as US Imports and Exports Fall in the Fourth Quarter

US titanium scrap imports and exports experienced a decline in the fourth quarter of 2024, according to recent US customs data. Weaker demand, especially triggered by a seven-week strike at Boeing, led to disruptions in supply chains, significantly affecting titanium scrap trade volumes. Imports fell by 5% to 6,779 metric tonnes (t), marking the lowest total since the first quarter of 2024.

Factors Behind the Decline in US Titanium Scrap Imports

The 5% decrease in imports can be attributed to reduced demand for titanium scrap. Boeing's strike had a substantial impact on supply chains, particularly in aerospace, which is a major consumer of titanium. As a result, the overall import volume dropped. The UK remained the top source of titanium scrap to the US, increasing shipments by 21% to 1,235t, which accounted for about 18% of US imports. On the other hand, imports from Canada fell by 27% to 588t, while shipments from Germany and Japan also decreased by double digits.

US Exports and Shifting Global Markets

US titanium scrap exports also declined, albeit slightly. Total exports fell by 1% to 2,701t. This was primarily driven by reduced prices from overseas markets and the typical seasonal slowdown in manufacturing during the holidays. India emerged as the top destination for US titanium scrap, with exports rising by 59% to 689t. Conversely, exports to Canada fell by 23% to 599t, while shipments to the UK rose by 24% to 397t.

Exports to Mexico surged by 590%, reaching 352t, while exports to South Korea and Germany dropped significantly. Exports to South Korea fell by 77% to 56t, and shipments to Germany declined by 59% to 41t. Despite these fluctuations, US titanium scrap exports for the full year saw a significant increase, rising by 18% to 11,756t, the highest in four years.

Conclusion: A Mixed Outlook for US Titanium Scrap Trade

The fourth-quarter data reveals both challenges and opportunities in the US titanium scrap trade. While imports faced declines due to supply chain disruptions, export volumes saw a notable rise for the full year. The shift in export destinations, particularly the rise in demand from India and Mexico, suggests evolving global market dynamics for US titanium scrap. Going forward, the US titanium scrap trade will need to navigate these changes while adjusting to the impact of global supply chain and economic conditions.

Titanium Exempted from US Tariffs: Aerospace Industry Impact Remains Unclear

Titanium

New US Tariff Exemptions for Titanium Could Affect the Aerospace Supply Chain

On April 2, 2025, US President Donald Trump announced new tariffs on several foreign imports, including an exemption for titanium, titanium scrap, and ferro-titanium. While the exemption helps protect titanium trade, the broader implications for the aerospace industry remain uncertain.

Titanium Exemption and Its Effects

The US tariffs announced include a list of exemptions, with titanium in its various forms being spared. However, other metals like hafnium, molybdenum, vanadium, nickel scrap, and aluminum scrap were not exempted. The new tariff scheme does not affect pre-existing duties on Chinese titanium products, including a 20% duty on titanium products from China, which has been in place since March 4, 2025. Despite the exemption for certain forms of titanium, Chinese titanium sponge imports will still be subject to a 60% duty, which remains unchanged.

Additionally, imports of unwrought titanium from Japan, Kazakhstan, and Saudi Arabia will still face a 15% tariff, though efforts to remove this tariff for sponge imports are underway. For US titanium scrap imports, particularly from the EU and UK, which make up over half of the US intake, the tariff exemption is crucial. Without it, US scrap dealers, processors, and consumers would face substantial challenges, as the US does not produce enough vacuum-grade titanium scrap domestically to meet demand.

Aerospace Industry and Supply Chain Impact

While the titanium exemption provides relief for many manufacturers, the broader impact of the tariffs on the aerospace industry is still unclear. Aerospace manufacturers are uncertain about the tariff's effects on finished parts, components, and engines, particularly regarding supply chains that involve cross-border production of engine parts like the Leap-1A and Leap-1B engines for the A320neo and Boeing 737 Max.

Canada and Mexico were excluded from the new US tariffs, alleviating concerns for companies like Bombardier, Airbus, RTX, and Heroux-Devtek, which operate in those regions. Still, some titanium producers believe the situation could change rapidly, as it is difficult to define the boundaries between parts made from titanium and assembled components that use other materials, such as nickel-based alloys or aluminum.

China’s 34% Tariff on US Exports

In response to US tariffs, China has imposed a 34% tariff on all US imports, which will affect titanium imports from the US. Despite importing limited amounts of titanium from the US, China still relies on US imports for critical aerospace components, including parts for its C919 aircraft. The C919 uses the CFM Leap-1C engine, which is assembled in both the US and France.

ELG Utica titanium solids center signals major shift in US titanium scrap

Titanium Scrap

ELG Utica titanium solids center plans highlight a strategic realignment in US specialty metals recycling. The ELG Utica titanium solids center will move solids processing from Hartford, Connecticut, to a new highly automated US “center of excellence.” As a result, the ELG Utica titanium solids center strategy will free Hartford to focus on higher-throughput titanium turnings processing.

New US “center of excellence” for titanium solids

ELG Utica Alloys will shut titanium solids operations at its Hartford facility as part of this realignment. The company will instead process titanium solids at a new specialised production site somewhere in the US. The new center will feature higher levels of automation and greater capacity for titanium solids processing.

The company has not disclosed the location or provided capacity estimates for the new facility. However, ELG expects the center to be operational in 2027. This timing aligns with growing aerospace and industrial demand for certified titanium scrap streams.

Hartford shifts toward higher titanium turnings throughput

The split between solids and turnings processing will reshape ELG’s US titanium footprint. Hartford will increasingly focus on boosting throughput of titanium turnings, which require different handling and safety protocols. This separation should improve operational efficiency and yield across both solids and turnings product lines.

Customers may benefit from more consistent quality and tighter specifications as each site specialises further. Meanwhile, the new automated facility should support tighter process control and lower unit costs for titanium solids. That combination will be important as OEMs and melt shops push for reliable, traceable, low-contamination titanium scrap feedstock.

The Metalnomist Commentary

This move underscores how titanium recyclers are redesigning plant networks around product specialisation, automation and customer qualification needs. While the lack of capacity guidance leaves some uncertainty, a dedicated ELG Utica titanium solids center should strengthen Western titanium scrap supply chains by 2027. The key watchpoint will be where the new site lands and how aggressively competitors respond with their own “centers of excellence.”

Titanium Exempt from New US Reciprocal Tariffs Amid Broader Aerospace Uncertainty

Titanium Ingot

Titanium Scrap and Alloys Dodge Latest Tariff Wave, but Market Unease Persists

Titanium and its derivatives, including scrap and ferro-titanium, were notably exempted from the latest round of US reciprocal tariffs announced on April 2. Annex II of President Donald Trump’s executive order outlined the list of exemptions, sparing various nonferrous metals, including titanium, from additional duties.

However, existing tariffs on titanium products remain unchanged. These include a 60% duty on Chinese titanium sponge and a 15% duty on unwrought titanium from Japan, Kazakhstan, and Saudi Arabia. While titanium scrap imports from the EU and UK are also exempt, pre-existing duties—such as the 20% tariff on Chinese titanium added in March—still apply.

Meanwhile, concerns linger about supply disruptions, particularly in vacuum-grade titanium scrap. The US depends heavily on EU and UK sources to meet demand for ingot melting in aerospace-grade production.

Aerospace Industry Caught in the Crossfire of Uncertain Trade Measures

The aerospace supply chain could still face ripple effects, especially concerning finished parts, components, and jet engines. Major OEMs such as Airbus, Boeing, and Rolls-Royce remain cautious, stating that they are assessing the impact of the new tariffs.

Jet engines like CFM’s Leap-1A and 1B, which power the Airbus A320neo and Boeing 737 Max, span a US-French supply chain, raising questions about the impact of cross-border tariffs on subcomponents. Landing gear systems produced by Safran for the Boeing 787 and turbine modules from GE in the US to France further complicate the situation.

While titanium producers currently report no impact on OEMs for titanium-based parts, the ambiguity surrounding composite materials and mixed-alloy components could lead to future disruptions.

China's Tariff Retaliation Raises Stakes for US Aerospace Exports

In response, China has imposed a 34% tariff on all US imports, with no exemptions, escalating the trade conflict. This will impact US titanium exports to China—totaling 1,300t in 2024—mainly in bars, rods, and wire, as well as aerospace components vital to Comac’s C919 jet program.

China’s C919 relies on US-sourced Leap-1C engines, avionics from Honeywell Aerospace, GE Aerospace, and Collins Aerospace, making it vulnerable to retaliatory tariffs.

Although China sources the majority of its titanium domestically, these duties highlight the fragile interdependence of global aerospace production.

The Metalnomist Commentary

Titanium’s tariff exemption provides momentary relief to US aerospace and scrap processors, but the real uncertainty lies in composite supply chains. As the US and China entrench their trade defenses, aerospace firms must prepare for further regulatory fragmentation. Strategic stockpiling, diversified sourcing, and diplomatic engagement will define resilience in the next phase of industrial policy shifts.

IperionX titanium powder expansion reshapes US titanium supply

IperionX

IperionX titanium powder expansion marks a major step in US titanium reindustrialisation. The company will invest $75mn to lift powder output sevenfold at its Virginia plant. As a result, IperionX titanium powder expansion supports domestic aerospace, defence and additive manufacturing supply chains.

Capacity, technology and cost reduction

The expansion will raise annual powder capacity from 200t to 1,400t by mid 2027. IperionX will add more HAMR furnaces while maintaining spherical powder capacity at 15t per year. Meanwhile, optimisation work has already lifted modular HAMR nameplate capacity by 60pc to 200t per year. These process gains cut unit operating costs by 27pc to $55 per kilogram today. Therefore the company targets $29 per kilogram once the IperionX titanium powder expansion is complete.

Downstream titanium parts and US supply chain impact

IperionX will grow downstream manufacturing alongside the IperionX titanium powder expansion in Virginia. The company targets near net shape production of titanium fasteners, brackets and other structural components. It will also produce mill products, including titanium plate, sheet and bar, for industrial customers. In addition, IperionX plans additive manufactured components using laser and electron beam powder bed fusion. As a result, the project strengthens US titanium value chains from powder through finished parts.

The Metalnomist Commentary

IperionX’s investment highlights how advanced process technology can reset titanium’s cost curve in North America. For aerospace and defence buyers, US based powder and parts capacity reduces reliance on imported sponge and mill products. However, execution on cost targets, quality standards and downstream qualifications will determine how quickly the market adopts this capacity.

US Titanium Mills Respond to Tariff Challenges with Strategic Shifts

US Titanium Mills: ATI

Focus Keyphrase: US Titanium Mills

US titanium mills are navigating a complex tariff environment following the Trump administration’s implementation of a 10% baseline import duty. Despite exemptions for some titanium forms, critical alloying elements and shop supplies remain exposed to tariff-driven cost pressures.

Major players like Howmet Aerospace and ATI have issued formal notices to customers. Howmet declared a force majeure on affected contracts, while ATI announced immediate price increases. Meanwhile, Perryman and Timet have adopted more cautious stances, opting to wait for further clarity before adjusting operations.

Exemptions and Exposure: What’s Included and What’s Not

The tariff exemptions cover some titanium feedstocks and semi-finished products.

However, vanadium pentoxide and other alloying materials used in aerospace titanium production were not exempted.

As a result, producers are adjusting to avoid significant cost overruns. ATI emphasized that tariffs “will significantly raise the costs to produce material,” and pricing must adapt. Howmet has opened the door to cost-sharing arrangements with customers, but its notice signals potential supply disruptions.

Industry Impact and Ongoing Uncertainty

The broader aerospace supply chain is at risk of increased pricing volatility. Both ATI and Howmet are evaluating sourcing alternatives to cushion downstream effects. Perryman’s reserved approach reflects industry-wide uncertainty as global suppliers weigh reciprocal measures.

It remains unclear how much of the tariff burden can be passed along. Producers and buyers alike now face an evolving cost landscape shaped by trade policy, production inputs, and customer flexibility.

The Metalnomist Commentary

The reaction from US titanium producers signals a critical tension point between trade protectionism and material supply chain security. As cost pressures rise, manufacturers may need to reassess sourcing and pass-through strategies in an increasingly volatile market.

IperionX Titanium Expansion: $47mn Raise to Scale US Titanium Powder

IperionX Titanium

IperionX titanium expansion accelerates with a planned $47mn capital raise. The IperionX titanium expansion targets angular titanium powder output of 2,000 t/yr by end-2026. This IperionX titanium expansion also strengthens domestic titanium supply chains for aerospace, defense, and advanced manufacturing.

Capacity scale-up and product roadmap

IperionX will push phase-one operations beyond its 125 t/yr modular furnace nameplate. The company plans to build out forging capabilities to offer semi-finished and near-net-shape parts. Potential customers completed inspection and pre-qualification visits to its Virginia campus.

Financing structure and timeline

Funding will come via a private placement executed in two tranches. The first tranche is expected to close “on or about” Tuesday. The second tranche, for directors, remains subject to shareholder approval.

IperionX aims to expand angular titanium powder supply for additive manufacturing. Meanwhile, the company will diversify into forgings to widen its product portfolio. These steps support resilient US supply chains amid rising titanium demand.

The plan includes scaling to 2,000 t/yr of titanium powder by 2026. Therefore, IperionX positions itself as a key US titanium feedstock source. The company will leverage its modular furnace technology to lift throughput efficiently.

The Metalnomist Commentary

This raise is sized for industrial proof, not mega-capex. Execution hinges on furnace debottlenecking, qualification wins, and forging ramp economics. Watch for multi-year offtakes with aerospace tier-ones to validate the capacity target.

European Lithium Velta Acquisition Expands Titanium Exposure in Critical Minerals

Velta Holding

The European Lithium Velta acquisition marks a strategic shift beyond lithium into titanium. European Lithium agreed to fully acquire US-based Velta Holding through an all-scrip deal. The transaction will diversify its critical minerals portfolio and support titanium production plans. As a result, the European Lithium Velta acquisition broadens the company’s long-term industrial relevance.

The deal also preserves operational continuity at Velta. Chief executive Andriy Brodskyi and the existing management team will remain in place. Production processes and export contracts will also stay unchanged. Therefore, the European Lithium Velta acquisition appears designed to add capacity without disrupting current business.

The transaction value remains flexible, but the strategic logic is already clear. The implied value stands at about A$48.5mn-A$50.1mn based on recent share prices. European Lithium will transfer 173mn fully paid ordinary shares to Velta shareholders. Consequently, the deal gives European Lithium direct exposure to operating titanium assets and technical know-how.

Ukraine Titanium Assets Add Processing Depth and Strategic Optionality

Ukraine titanium assets are central to the appeal of this transaction. Funding will be directed toward stabilising operations at Velta’s Byrzulivske mining and processing complex. That support is important because asset reliability matters as much as resource ownership. Meanwhile, the company gains access to a working titanium platform rather than an early-stage concept.

Velta also brings a more advanced technology angle. The company has plans tied to a US titanium manufacturing site that would process ilmenite into titanium powder. That project would use Velta’s patented process and Ukrainian feedstock. Therefore, the European Lithium Velta acquisition adds both upstream resource exposure and downstream processing potential.

This matters for the wider critical minerals market. Titanium is increasingly relevant to aerospace, defence, additive manufacturing, and industrial applications. A company that combines lithium exposure with titanium capability can position itself more broadly in strategic materials. As a result, European Lithium may gain a more diversified investment narrative.

Titanium Production Plans Still Depend on Security and Execution

Titanium production plans now depend on more than corporate ambition. Any larger expansion in capacity or investment will remain tied to the security environment in Ukraine. That creates a clear execution risk for the acquired assets. However, it also means the upside could be meaningful if conditions stabilise.

The US angle adds another layer of strategic value. Velta previously received a letter of interest for $60mn from the Export-Import Bank of the United States. That support relates to development of a US titanium manufacturing site. Consequently, the European Lithium Velta acquisition could eventually support a more international titanium supply chain.

For European Lithium, this is a portfolio-shaping move rather than a simple asset purchase. The company is using Velta’s assets and technical capabilities to expand its reach in critical minerals. Meanwhile, it is doing so through a structure that avoids immediate cash strain. Therefore, the deal could prove important if management converts strategic optionality into operating progress.

The Metalnomist Commentary

This acquisition is notable because it links lithium strategy with titanium industrial capability. European Lithium is no longer presenting itself as a single-metal story. If execution holds and security risks ease, the company could emerge with a more credible role in the broader critical minerals chain.

US Titanium Scrap Imports and Exports Surge in Q3 Amid Global Trade Shifts

Titanium Scrap

The U.S. Titanium scrap market witnessed a notable upturn in both imports and exports during the third quarter of 2024, driven by reduced domestic scrap generation rates and favorable margins in international markets. According to recently released U.S. customs data, titanium scrap imports climbed 8.8% year-over-year to 7,484 metric tonnes (t), marking the highest quarterly total since Q2 2019. Exports, meanwhile, surged by 33% to 3,088t, the strongest performance since Q1 2021.

Titanium Scrap Imports: Supply Chain Adjustments

The U.S. market's reliance on foreign titanium scrap intensified as domestic supplies tightened. Imports from the UK rose sharply, increasing by 36% to 1,386t, compensating for declines from other key suppliers like Germany and Japan, which saw reductions of 5% (1,002t) and 20% (743t), respectively.

Shipments from emerging suppliers saw significant growth, with double-digit percentage increases from Singapore, Italy, South Korea, Mexico, and France. These diversified sourcing strategies reflect global trade adjustments amidst fluctuating titanium market dynamics.

Exports on the Rise: International Margins Drive Growth

On the export front, U.S. merchants capitalized on improved margins in international markets. The UK remained the top destination for U.S. titanium scrap, with shipments reaching 745t—a more-than-fourfold increase compared to Q3 2023.

Mexico exhibited the highest year-over-year percentage growth, receiving 300t in Q3 2024, a dramatic increase from just 19t in the same period last year. Estonia also displayed substantial growth, importing 208t, up 285% from the prior year. However, India reduced its imports of U.S. titanium scrap by 38% to 286t, reflecting a shift in trade dynamics within the region.

IperionX Launches Feasibility Study for U.S. Titanium and Rare Earth Project

IperionX Project

Titan Project Targets Domestic Titanium, Rare Earths, and Zirconium Supply

U.S.-based IperionX has initiated a definitive feasibility study (DFS) for its Titan Critical Minerals project in Tennessee. The project, backed by more than $60 million in U.S. federal funding, aims to support a domestic titanium supply chain. The DFS is scheduled for completion by the second quarter of 2026.

Titan contains titanium, zirconium, and both light and heavy rare earth elements (REEs). Notably, it holds critical materials like dysprosium, terbium, neodymium, and praseodymium, which are essential for national defense and advanced technologies. IperionX says Titan has the potential to become the largest U.S. source of heavy REEs.

U.S. Strategic Goals Back Critical Mineral Development

The U.S. government’s financial support reflects the national urgency to reduce dependence on foreign critical mineral imports. These elements are vital for electric vehicles, wind turbines, and military technologies. Meanwhile, the ongoing progress at IperionX’s Virginia titanium facility signals broader ambitions to onshore titanium metal production.

IperionX is uniquely positioned as both a miner and metal producer, aligning with the Department of Defense’s push for vertical integration of strategic materials. Its titanium output, paired with rare earths from Titan, would significantly enhance U.S. resource security.

Focus Keyphrase: Titan Critical Minerals Project

The Titan Critical Minerals project represents a major leap toward domestic critical mineral self-sufficiency. With a unique mix of titanium, zirconium, and rare earths, Titan stands out among U.S. mineral assets. IperionX’s dual approach—upstream mining and downstream processing—further strengthens the value chain.

As global supply chains shift and geopolitical risks rise, Titan’s progress could redefine the U.S. role in global critical mineral markets.

The Metalnomist Commentary

Titan is more than a mine; it is a strategic asset. IperionX’s development could reshape America’s critical materials future—especially for defense and clean tech.

US Vanadium V2O5 flake production strengthens US titanium alloy supply

US Vanadium

US Vanadium V2O5 flake production has started in Hot Springs, Arkansas. The project delivers domestic, high-purity vanadium flake for titanium alloys. As a result, US Vanadium V2O5 flake production reduces aerospace supply risk and shortens lead times.

Offtake and funding signal durable demand

US Vanadium V2O5 flake production serves planned offtake for titanium alloy makers. These buyers supply critical aerospace components. Funding support from Traxys North America and the US Defense Logistics Agency underpins early volumes. Therefore, producers can plan melts and inventories with greater confidence.

Recycling route improves cost and sustainability

The plant sources post-industrial waste to manufacture high-purity vanadium products. This circular feedstock lowers landfill impact and stabilizes input costs. Meanwhile, US Vanadium V2O5 flake production enhances traceability for defense and commercial audits. The approach aligns with Buy American and resilience goals.

Domestic flake capacity closes a strategic gap. The company is the only US producer of vanadium flake for titanium alloys. Consequently, aircraft and engine programs gain a local, compliant source.

Downstream titanium alloy demand remains firm. Aerospace backlogs and engine MRO require steady vanadium additions. As a result, consistent flake output supports melt schedules and quality targets.

Broader metals supply chains also benefit. Reliable V2O5 flake supports specialty steels and superalloys. It also positions the US for future vanadium redox flow battery growth.

The Metalnomist Commentary

This milestone tightens a fragile link in the US aerospace metals chain. Watch how sustained offtake, recycling yields, and capacity utilization translate into lower import dependence and steadier titanium alloy pricing.

IperionX titanium track pins order signals US defense shift to recycled titanium

Rheinmetall

IperionX titanium track pins are moving from lab validation to real military prototyping. IperionX received a $300,000 purchase order from American Rheinmetall for titanium track pins used in US Army heavy ground vehicles. IperionX titanium track pins will be delivered as 700 prototype units within 8–9 months.

IperionX titanium track pins will be produced from recycled titanium feedstock. The company will use its Hydrogen Assisted Metallothermic Reduction and Hydrogen Sintering and Phase Transformation routes. As a result, the order tests both production repeatability and mechanical performance for rugged tracked platforms.

Why titanium track pins matter for weight and readiness

Titanium substitution can cut component weight by roughly 40–45% versus steel. Therefore, IperionX titanium track pins could reduce total vehicle weight by several hundred kilograms. Lighter vehicles can improve mobility, extend component life, and reduce fuel burn in high-duty cycles.

American Rheinmetall supports major US ground platforms, including the M1 Abrams and M2 Bradley. Meanwhile, the US defense supply chain is pushing for resilient domestic sourcing. A proven titanium track pin pathway would strengthen US manufacturing optionality for wear parts.

DoD support accelerates recycled titanium scale-up

IperionX recently received the final $4.6mn of a previously announced $47.1mn Department of Defense award. The US government also transferred about 290t of high-quality 6Al-4V scrap to the company at no cost. This material equals about 1.5 years of feedstock at IperionX’s current 200 t/yr operating capacity.

This structure reduces two common bottlenecks at once. However, prototypes still need qualification discipline, stable properties, and cost visibility at scale. If IperionX titanium track pins meet wear and toughness targets, follow-on orders could expand into broader tracked-vehicle components.

The Metalnomist Commentary

This order is small, but it is strategically loud. It forces recycled titanium to compete on repeatability, not marketing. If qualification succeeds, titanium could enter a wider set of armored wear parts.

Toho Titanium Weighs Options for New Titanium Sponge Plant

Toho Titanium Factory

Japan's Toho Titanium is contemplating the establishment of a new titanium sponge production facility, potentially in the US, Saudi Arabia, or Japan, as the company revealed to Metalnomist. This move is driven by the expected surge in demand from the aerospace sector, with original equipment manufacturers (OEMs) accelerating aircraft production.

Toho Titanium aims to finalize its decision on the project within this year, although specific locations and production capacities are still under review. While the company has not disclosed the capital expenditure (capex) or a construction timeline, market observers estimate that the investment required would be at least $300 million, with any new site likely taking around four years to become operational.

As a point of reference, Toho Titanium’s joint venture with Saudi firm AMIC, which resulted in a 15,600 t/yr sponge plant in Saudi Arabia, was announced in 2014, commenced construction in 2015, and began commercial production in 2019. The project involved an investment of $420 million.

Among the potential locations, Saudi Arabia is favored for its lower electricity costs. Toho is also considering the US, which would offer proximity to major titanium sponge consumers like Titanium Metals (Timet), ATI, Howmet, and Perryman. Alternatively, the company may expand its existing operations in Japan.

The acceptance of a Japanese sponge plant in the US is uncertain, especially after the opposition to Nippon Steel’s proposed acquisition of US Steel. Furthermore, in March, several US senators introduced a bill to suspend duties on titanium sponge imports, facilitating imports from Japan. This bill, supported by all four major US melters, suggests no immediate plans from Timet or ATI to restart idled domestic capacity at Henderson or Rowley.

Last month, Japanese titanium producer Osaka Titanium announced a ¥30 billion ($191 million) investment to build a new plant in Amagasaki, which will increase its titanium sponge capacity from 40,000 t/yr to 50,000 t/yr.

Investments from Toho and Osaka, along with continued procurement from Russia’s VSMPO-Avisma, could delay the anticipated deficit in the aerospace sponge market. The acceptance of Chinese sponge remains a contentious issue, with concerns about consistent production quality, especially given the industry's emphasis on quality and safety compliance.

Near-Term Challenges vs. Longer-Term Growth

The recovery in demand for widebody aircraft for international travel is set to be the primary driver of titanium consumption in the coming years. European firm Airbus aims to produce 12 aircraft per month by 2028 for its A350 program, while US firm Boeing targets 10 per month by 2026 for its 787 model.

In the short term, supply chains are struggling to match the recovering demand. Airbus CEO Guillaume Faury noted in the company’s April earnings call that although the issues are manageable on a case-by-case basis, the overall environment remains challenging.

Despite downstream production setbacks and persistent supply chain limitations, the demand for titanium sponge upstream remains strong. Melters, forgers, and parts manufacturers are increasing their inventories of titanium products in anticipation of higher demand in the latter half of the year.

Ferro-Titanium Section 232 Tariffs Requested by US Producer Galt Alloys

Galt Alloys

Galt Alloys petitioned the Commerce Department to include ferro-titanium Section 232 tariffs on imports. The Ohio-based producer argues foreign shipments depress domestic production and market prices significantly. This ferro-titanium Section 232 tariffs request could transform the US specialty alloys market dynamics.

Domestic Capacity Meets US Steel Industry Demand

Galt and Michigan-based AmeriTi possess sufficient capacity to supply America's annual requirements completely. The US imported only 2,022 tonnes of ferro-titanium in 2024, down 50% from 2021. Meanwhile, Canada, Estonia, Latvia, and the UK supplied 94% of total imports. These nations ship primarily powdered ferro-titanium, a premium product over lump form.

Import costs could increase 50% if tariffs apply after Trump doubled steel rates. Currently, ferro-titanium carries only a 3.7% general duty rate versus steel's 25%. Furthermore, the alloy remains exempt from Trump's "Liberation Day" measures entirely. The USMCA agreement also protects Canadian ferro-titanium from additional duties presently.

Strategic Implications for US Steel Manufacturing

Ferro-titanium acts as a critical deoxidizer and desulfurizer in steel production processes. The alloy contains 70% titanium with iron comprising the remaining balance. Therefore, securing domestic supply strengthens America's steel manufacturing independence and competitiveness. Galt claims imports prevent domestic expansion and profitability despite US price premiums.

Foreign producers contest dumping allegations with Latvia's LLR expecting no specific actions. However, the ferro-titanium Section 232 tariffs proposal aligns with broader protectionist policies. As a result, US steel producers face potential cost increases for essential inputs. Stakeholders must submit comments on Galt's petition by June 4th deadline.

The Metalnomist Commentary

Galt's petition highlights the delicate balance between protecting domestic producers and maintaining competitive input costs for downstream manufacturers. With only two US ferro-titanium producers versus diverse import sources, tariffs could create supply vulnerabilities and price spikes. The 50% import decline since 2021 suggests market forces already favor domestic production without additional protection.

China Titanium Sponge Exports Rise in March as Asian Buyers Support Demand

China Titanium Sponge

China titanium sponge exports rose year on year in March, supported by stronger buying interest from South Korea, India, Vietnam and Slovenia. Chinese customs data showed exports reached 453t during the month, up 8.6% from 417t a year earlier.

China titanium sponge exports still declined by 7.4% from February’s 489t, showing that overseas buying remained selective. Some buyers were not under immediate pressure to purchase Chinese material because spot supply was sufficient.

China titanium sponge exports totalled 1,535t in January-March, down 5.7% from a year earlier. The decline reflected weaker buying from major consumers including Japan, South Korea and the US.

The data show a titanium sponge export market that is recovering unevenly. Asian demand helped March shipments, but inventory drawdowns, delayed purchasing and weaker aerospace-linked orders continued to limit broader export momentum.

Japan, South Korea and US Demand Weaken in First Quarter

Japan remained the largest destination for Chinese titanium sponge in January-March, receiving 347t. However, shipments fell by 37% from 548t a year earlier.

The decline was mainly caused by delayed purchasing from a major Japanese consumer. Purchases are expected to resume in May, which could support later-quarter export flows.

South Korean imports from China also fell. Shipments dropped by 33% to 172t as some buyers slowed procurement after failing to secure downstream aerospace original equipment manufacturer orders.

This matters because aerospace demand remains one of the most important drivers of higher-grade titanium sponge consumption. When downstream aerospace orders are delayed, sponge buyers often reduce spot intake and work through inventories.

US demand was almost absent in the first quarter. China exported only 0.2t of titanium sponge to the US, down 99.8% from a year earlier, as US consumers continued drawing down inventories.

The US result highlights the effect of inventory cycles and trade uncertainty. Even when Chinese material remains available, buyers may delay purchases if they have sufficient stock or face qualification, tariff and policy risk.

Export Prices Track Higher Domestic Sponge Market

Chinese 99.7% grade titanium sponge export prices averaged $6.70/kg fob China in January-March. This was up 1.5% from $6.60/kg a year earlier.

The increase tracked higher domestic titanium sponge prices. Export pricing therefore reflected cost support in China rather than a broad surge in overseas demand.

The modest price rise also shows that the market remains balanced. Chinese suppliers have support from domestic costs, but overseas buyers are still cautious and selective.

For global titanium supply chains, the key issue is not only volume. The quality, qualification status and end-use requirements of sponge matter, especially for aerospace and high-performance industrial applications.

China’s titanium sponge exports remain important for regional buyers in Asia and Europe. However, demand from aerospace-linked customers will depend on downstream order visibility, inventory levels and qualification confidence.

If Japanese buying resumes in May and South Korean aerospace-related demand improves, Chinese exports could recover further. But weak US flows suggest that trade and inventory factors will continue to limit upside in some markets.

The Metalnomist Commentary

China titanium sponge exports show a market supported by regional buying but still constrained by aerospace order timing and inventory drawdowns. The next signal will come from whether Japanese and South Korean buyers return with stronger qualified-material demand in the second quarter.

Aerospace OEMs Look to Reduce Dependency on Russian Titanium

VSMPO

Aerospace OEMs, including Airbus and Safran, are working to reduce reliance on Russian titanium as supply chain challenges grow due to rising tensions.

The Shift Away from VSMPO-AVISMA 

As global tensions escalate, aerospace original equipment manufacturers (OEMs) like Airbus and Safran are actively working to decrease their reliance on Russian titanium producer VSMPO-AVISMA. The urgency of this shift has heightened since Russian President Vladimir Putin’s recent call for export restrictions on critical metals like titanium, nickel, and uranium.

Airbus Multi-Sourcing Strategy

Airbus, a leading European aircraft manufacturer, is well-positioned in the short-to-medium term thanks to its diversified network of metal suppliers. An Airbus spokesperson told Metalnomist that efforts are underway to secure supply chain resilience through multi-sourcing strategies. However, Airbus has refrained from specifying a timeline for when it will completely sever ties with Russian suppliers.

Safran

Safran’s Progress Toward Decoupling 

French aerospace manufacturer Safran has been reducing its reliance on Russian titanium since February 2022. The company has made significant strides in qualifying alternative, non-Russian sources of titanium. According to a Safran representative, while the qualification of new suppliers takes 2-3 years depending on the complexity of the parts, the process is nearly complete. However, scaling up production to meet current demand remains a challenge across the industry.

Challenges of Securing Alternative Supplies 

VSMPO-AVISMA is the world’s largest titanium producer, and transitioning away from its supply chain has been a complex process for aerospace OEMs. One of the key obstacles is the exclusive contracts in place for critical parts like landing gear components, as well as the limited capacity for producing large-scale forgings and machining operations. Airbus acknowledged in October that it continues to honor its existing contracts in compliance with international sanctions, but reiterated its long-term goal of decoupling from Russian supply chains.

Boeing and the U.S. Response 

In contrast to Airbus, American aircraft manufacturer Boeing ceased all procurement from VSMPO-AVISMA in March 2022. Boeing also ended its forgings joint venture with the Russian company, Ural-Boeing Manufacturing. The U.S. has since imposed a 70% duty on titanium imports from Russia, further isolating the Russian supplier from the American market.

RTX

The Role of Nickel and Titanium in Aerospace 

Titanium plays a vital role in aerospace applications, including structural parts, fasteners, compressor blades, landing gears, and heat exchangers. Nickel, another metal facing export restrictions, is primarily used in high-temperature superalloys for the hot core of jet engines.

Global Sanctions and Industry Reactions The EU has yet to implement sanctions specifically targeting VSMPO, a move that contrasts with the more aggressive stance taken by the U.S. and Canada. Canada’s direct sanctions on VSMPO initially impacted companies like Airbus and Bombardier, but both received exemptions. U.S.-based RTX, however, faced complications and had to secure new titanium sources for its subsidiary, Collins Aerospace, which manufactures landing gear in Canada.

Future Prospects for Titanium Supply 

In response to the growing demand and the void left by VSMPO, U.S. titanium melters such as Timet, ATI, and Perryman are expanding their ingot melt capacities. Similarly, Japanese producers Toho Titanium and Osaka Titanium are investing in capacity expansion, though these efforts are expected to take several years to fully materialize.

Uncertainty Around Russian Export Restrictions 

Whether Russia will move forward with its export restrictions remains uncertain. Safran has stated it has no further information beyond Russia’s public statements, and Airbus has declined to comment on the matter. VSMPO’s largest shareholder, Industrial Investments, holds a 65.27% stake, while the Russian state-controlled defense firm Rostec owns 25%. Putin’s call for restrictions came with the caveat that they should not harm Russia, leaving the industry in a state of uncertainty.

China Aerospace-Grade Titanium Sponge Exports Set to Rise as OEMs Diversify Supply

China Aerospace-Grade Titanium Sponge

China aerospace-grade titanium sponge exports are expected to rise over the next five years as western aerospace supply chains look for additional qualified raw material sources. Chinese producer Chaoyang Jinda Titanium expects international shipments of qualified aerospace-grade sponge to increase from around 1,000t this year to 10,000t by 2030.

The shift reflects a deeper change in the aerospace titanium supply chain. Western aircraft manufacturers and ingot melters are trying to reduce exposure to Russian supply, while aircraft build rates are expected to rise from 2027.

China aerospace-grade titanium sponge is therefore moving from a limited export niche into a potential supply-chain balancing tool. However, tariffs, qualification risk and geopolitical uncertainty will limit how quickly US and European buyers adopt Chinese material.

The opportunity is strongest in standard-quality structural titanium grades. Premium-quality sponge for engine, landing-gear and other critical applications is likely to remain controlled by established suppliers with long qualification histories.

Western Aerospace Buyers Face a Supply-Diversification Challenge

Aerospace-grade sponge demand is expected to recover from 2027 after a weaker 2026 caused by inventory normalisation. Mills have been reducing stocks of semi-finished titanium parts and raw materials, but aircraft production plans point to higher requirements later in the decade.

The timing is important. Airbus and Boeing both carry long aircraft backlogs, creating a decade of production visibility. This forces mills and original equipment manufacturers to look beyond short-term demand swings and secure raw material sources for future build-rate increases.

Western OEMs also continue to reassess Russian titanium exposure. If procurement from Russia declines, the market will need alternative aerospace-qualified sponge to fill the gap. Japan’s Toho Titanium and Osaka Titanium are expanding, while China is preparing to supply more qualified material.

Global approved aerospace-grade sponge supply excluding Russian products is expected to rise from about 74,000t this year to around 91,000t by 2030. Demand is expected to grow at a similar pace, leaving the market sensitive to which suppliers are included in purchasing programmes.

The supply-demand picture changes significantly depending on China and Russia. Excluding both suppliers creates a tighter market. Including them creates more apparent supply availability. This makes qualification and geopolitical acceptability just as important as physical capacity.

Some US ingot producers began qualifying Chinese titanium sponge in 2024. US imports from China rose to a 10-year high of 1,069t that year, showing that buyers were willing to test Chinese material when diversification pressure increased.

However, imports fell to 155t last year and no Chinese sponge imports were reported in January-February 2026. Tariff volatility, high mill inventories and policy uncertainty discouraged further purchasing.

This shows the main barrier for China aerospace-grade titanium sponge. Aerospace qualification requires multi-year commitments, stable documentation, repeatable quality and customer confidence. Buyers will not qualify a new source quickly if they fear trade rules could change again.

Titanium is exempt from the latest 10% US tariff, and overall duties have fallen back to 40% from 60%. But the rate itself is not the only issue. For aerospace buyers, volatility can be more damaging than the actual tariff level.

A mill can absorb or price a known tariff. It cannot easily build a long-term qualification strategy around unpredictable policy. This is why US buyers may limit Chinese sponge procurement to 15-20% of requirements, even if the material is technically acceptable.

Europe and Asia-Pacific may offer more immediate export channels. China already supplies aerospace-grade sponge to buyers in those regions, supporting shipments even when US demand is limited.

Capacity Expansion Could Change the Titanium Sponge Balance

China is preparing a large wave of aerospace-grade sponge capacity additions. Several major projects are scheduled to come on line soon, with combined new capacity of around 110,000 t/yr.

The scale is unprecedented. The planned additions exceed the combined existing capacity of Japan’s Toho and Osaka Titanium, Kazakhstan’s Ust-Kamenogorsk Titanium and Magnesium Plant, and Saudi Arabia’s ATTM.

China’s expansion is driven by two demand streams. Domestic aerospace demand is rising from the Comac C919 programme and military aircraft production. At the same time, producers expect higher export demand as western OEMs diversify away from Russia.

China’s titanium mill product demand already has a meaningful aerospace base. Aerospace applications accounted for about 20% of China’s titanium mill product demand in 2025, or roughly 31,280t. The chemicals industry remained the largest segment at 48%.

The domestic base gives Chinese sponge producers a stronger platform for quality improvement. Aerospace production experience matters because sponge qualification depends on consistency over time, not only nameplate capacity.

Still, some market participants question whether all new capacity can secure international aerospace qualification. New lines may need years of operating history before western melters and OEMs accept material for aircraft applications.

This is a critical distinction. China may have large physical capacity, but aerospace supply depends on approved, audited and repeatable production. Capacity alone does not guarantee market access.

Price competitiveness may support adoption. Domestic China aerospace-grade sponge prices have recently held firm at 55,000-57,000 yuan/t ex-works because of cost pressure. That remains competitive against some western supply routes, especially if buyers need alternative non-Russian material.

However, qualification is likely to split the market by application. Standard structural titanium grades are more likely to accept Chinese sponge over time. These grades support airframes and less critical structural components where qualification remains strict but less restrictive than engine-grade applications.

Premium-quality sponge will be harder to penetrate. Engine, landing-gear and other demanding aerospace uses require deeper qualification, tighter chemistry control and stronger confidence from prime contractors and tier suppliers.

Airbus’ titanium demand outlook adds another layer. The A350 is a high titanium-bearing platform, with titanium representing around 15% of aircraft weight. As A350 production rises toward 2027 and 2028, titanium demand visibility should improve across the supply chain.

That demand pull could make Chinese material more attractive if western supply tightens. But buyers will still balance cost, qualification, geopolitics and supply security.

For Chinese producers, the path is clear but difficult. They must prove consistent aerospace-grade quality, build long-term customer trust, manage export documentation and navigate trade policy risk.

For western OEMs, the decision is strategic. China aerospace-grade titanium sponge could reduce Russia exposure and improve supply flexibility. But it also introduces another geopolitical dependency at a time when aerospace and defence supply chains are under closer scrutiny.

The most likely outcome is partial adoption. Chinese sponge may become a growing supplement for standard-quality structural grades, while established Japanese, Kazakh, Saudi and other qualified suppliers remain central to premium aerospace applications.

The Metalnomist Commentary

China aerospace-grade titanium sponge will become harder for western aerospace supply chains to ignore as aircraft build rates rise and Russian exposure narrows. The decisive issue is not capacity, but whether Chinese producers can convert new output into trusted, qualified and politically acceptable supply.

UKTMP Titanium Sales Rise Despite Aerospace Supply Chain Weakness

Ust-Kamenogorsk Titanium and Magnesium Plant

UKTMP titanium sales increased in 2025 despite weaker-than-expected aerospace demand and continuing supply chain disruption at Airbus and Boeing. UKTMP International reported sales of $199mn, up 5.3% from $189mn in 2024.

UKTMP titanium sales were concentrated in Europe and the US, which accounted for 47% and 44% of total revenue, respectively. Kazakhstan represented 6% and India 3%.

UKTMP titanium sales growth came despite lower titanium sponge and ingot volumes than originally anticipated. Aircraft manufacturers and titanium suppliers continued reducing inventories after expected aerospace production growth failed to materialise.

Gross profit increased by 18% to $11mn, although operating profit declined to $2.7mn from $3.4mn a year earlier.

Aerospace Weakness Pushes Sponge Output Lower

UKTMP produced 15,000t of titanium sponge in 2025, down from 19,000t in 2024. The company expects output to fall further to 13,000t in 2026.

That would leave production at only half of UKTMP's 26,000 t/yr nameplate capacity, highlighting the gap between installed supply and current aerospace consumption.

The decline reflects problems across the aircraft supply chain rather than a structural loss of titanium's importance. Airbus and Boeing continue to face constraints across engines, components and supplier networks, slowing aircraft production and titanium consumption.

Inventory normalisation has added further pressure. Titanium suppliers had built stocks in anticipation of stronger airframer demand, but slower production forced manufacturers to reduce purchases and work through existing material.

UKTMP nevertheless secured a new five-year agreement with Boeing through 2030. Initial volumes are lower than the producer had expected, although the contract allows for higher deliveries during its term.

The company also signed another long-term contract with an undisclosed customer and is advancing negotiations with a US titanium producer.

These agreements provide longer-term sales visibility even while near-term sponge utilisation remains weak.

Logistics and Energy Costs Pressure Kazakhstan Supply

UKTMP continues to face higher freight costs because it cannot use Russian ports to ship material. Alternative logistics routes increase transport complexity and raise delivered costs for customers in Europe and the US.

Electricity prices are another concern. The producer has been informed of further increases in power costs during 2026, adding pressure to titanium sponge economics.

Titanium sponge production is energy intensive, meaning electricity prices have a direct impact on competitiveness. Lower utilisation can compound that pressure because fixed operating costs are spread across fewer tonnes.

UKTMP is also preparing a new titanium alloy ingot product that could provide additional growth opportunities. The company has not disclosed the alloy or intended market.

Moving further downstream into alloy ingot could help UKTMP capture more value than sponge production alone and reduce its dependence on commodity-style raw material sales.

The strategy becomes increasingly important while aerospace titanium demand remains below earlier expectations. Producers able to combine sponge, ingot and long-term customer agreements should be better positioned when aircraft production eventually accelerates.

The Metalnomist Commentary

UKTMP's falling sponge output shows that aerospace titanium demand remains constrained by aircraft production rather than metal availability. Its long-term contracts and move toward alloy ingot suggest the company is preparing for recovery while protecting itself from prolonged weakness in commodity sponge demand.

Enduring Reliance Amid Sanctions: Europe’s Russian Titanium Dilemma

VSMPO Titanium

Introduction: A Supply Chain Unbroken in Wartime

Despite sweeping economic sanctions imposed by the West following Russia’s invasion of Ukraine in February 2022, one supply chain has proved remarkably resilient: Russian titanium sponge. Europe’s quandary over this advanced material—indispensable to aerospace, defense, and medical-device manufacturing—has only deepened.

Russia’s Command of Titanium

Russia ranks among the world’s largest titanium producers. VSMPO-AVISMA, the country’s flagship producer, accounts for 90% of Russia’s titanium output and exports to some 50 countries. The company is estimated to control up to 30% of the global titanium market and nearly half of aerospace-grade supply.

Russia’s dominance rests on abundant raw-material reserves and comparatively low energy costs. Because titanium smelting is energy-intensive, commercial viability depends on cheap power and gas—conditions Russia has historically met.

Airbus A380

Trade that Continues Despite Sanctions

On 7 March 2022, Boeing announced it would halt purchases of Russian titanium used in aircraft manufacturing. Rolls-Royce and Boeing subsequently suspended procurement from VSMPO-AVISMA indefinitely.

Europe, however, charted a different course. Airbus urged the European Union to keep Russian titanium outside future sanctions packages. As Airbus chief executive Guillaume Faury argued, titanium represents a small share of Russia’s total exports, so sanctions would inflict little pain on Moscow while dealing a heavy blow to Europe’s aerospace industry.

Today, Airbus still sources roughly half of its titanium from VSMPO-AVISMA. Boeing, by contrast, once relied on Russia for about one-third of its titanium but has since stopped buying Russian material.

The Limits—and Exceptions—of EU Sanctions

Notably, while the EU has restricted imports of Russian steel and coal, titanium has not been sanctioned. The metal remains a strategic material used in fuselages, turbine blades, satellites, and other critical systems.

Dependence on Russian metals endures in other segments as well. From March to June 2022, combined EU-US imports of Russian aluminum and nickel rose to $1.98 billion—more than 70% above the prior-year period.

Washington and Brussels have generally refrained from designating industrial metals as sanction targets. Europe continues to import large volumes of Russian natural gas, and Russia supplies about 40% of global palladium—vital for semiconductors—implicating everything from automobiles to smartphones.

CBAM

CBAM: A New Variable

The EU’s Carbon Border Adjustment Mechanism (CBAM), introduced in October 2023, adds another layer of complexity. CBAM initially covers cement, electricity, fertilizers, iron and steel, aluminum, hydrogen, and certain downstream products in steel and aluminum. After a transition phase through 2025, full implementation begins in 2026, imposing carbon costs on imports equivalent to those borne by EU producers.

While fertilizers, cement, hydrogen, and non-exported electricity may see limited near-term impact, aluminum stands out as a key target sector. Most exports to the EU beyond steel and aluminum are not yet covered, though the European Commission has signaled possible expansion to high-leakage categories such as organic chemicals and plastics.

Russia is structurally disadvantaged under CBAM. Steel production in Russia, Ukraine, and Türkiye tends to be more carbon-intensive, implying higher embedded-carbon costs at the border.

Ambiguities in Sanctions and Industry’s Dilemma

The United States placed VSMPO-AVISMA on its “military end-user” list, restricting access to advanced technologies, but stopped short of a direct ban on titanium sales—an acknowledgment of global industry’s reliance on the material.

Indeed, during the early stages of the war, VSMPO-AVISMA avoided sweeping US and European sanctions. Although Washington temporarily listed the company in December 2020, the measure was later rescinded.

Recent moves, however, suggest a tightening environment. In April 2024, a joint US-UK action prompted the CME and LME to prohibit trade in newly produced Russian aluminum, copper, and nickel dated after 13 April—an effort widely read as constraining Russia’s influence in metals markets.

Ukraine Titanium Mine

Ukraine: A Viable Alternative?

Against this backdrop, Ukraine has emerged as a potential alternative. Until 2020, the country supplied 90% of Russia’s ilmenite—the feedstock for titanium sponge. With that supply chain severed by war, Ukrainian resources could help challenge Russia’s dominance.

US companies have begun talks with Kyiv on a joint venture anchored by the Zaporizhzhia Titanium-Magnesium Plant (ZTMP). Such partnerships could forge a new titanium hub in Eastern Europe, strengthening Ukraine’s economic footing for decades.

The risks are significant. Ongoing conflict and occupation threaten both Donbas deposits and the ZTMP facilities, which remain exposed to shelling and sabotage.

Aviation’s Growth—and Its Dilemma

The aerospace-titanium market was valued at roughly $100 million in 2022 and is projected to grow at a CAGR exceeding 5% from 2023 to 2032—reflecting the rebound in air travel and a pipeline of commercial aircraft programs.

Despite supply-chain turbulence from war, energy constraints, and labor shortages, passenger traffic continues to recover, lifting titanium demand. In October 2022, Airbus announced plans to deliver more than one aircraft per week to India, persisting with expansion despite engine-supply challenges and domestic carrier capacity constraints—developments that further complicate titanium sourcing.

The Reality of Diversification

Boeing reportedly began diversifying away from Russian titanium after the 2014 annexation of Crimea. Airbus, by contrast, remains heavily reliant on Russian supply.

Globally, China produced around 100,000 t of titanium in 2013—twice the combined output of Russia and Japan at the time—making it the world’s largest producer. Japan ranked third, with Osaka Titanium Technologies standing as the world’s second-largest producer of titanium sponge.

The Metalnomist Commentary: An Unfinished Dilemma

Europe’s struggle over Russian titanium sponge epitomizes the knotty realities of modern supply chains. Between economic sanctions and security imperatives, between industrial competitiveness and moral principle, Europe has yet to find a definitive answer.

With CBAM’s full force arriving in 2026, higher carbon-cost pass-throughs on Russian metals seem likely, intensifying pressure to rewire supply. Yet, as Airbus’s position illustrates, displacing Russian titanium in the short term remains daunting.

The gap between industrial necessity and political sanction endures—witness VSMPO-AVISMA’s August 2025 statement that it stands ready to resume cooperation with Boeing. For now, Europe must navigate this dilemma with prudence: balancing sanction principles, industrial realities, and emergent environmental rules—while accelerating the use of recycled titanium wherever feasible.