Driven by geopolitical factors and market demand, the global titanium supply chain is undergoing significant changes. In the sponge titanium sector, Ukraine’s production has dropped to zero since 2022; Saudi Arabia has seen significant growth in recent years, with its 2024 production roughly equal to that of Kazakhstan, at around 15,000 tons per year; China, Japan, and Russia form a “three-way” dominance, with production shares of 67.9%, 14.5%, and 10.5%, respectively.
In the titanium materials sector, global production is mainly concentrated in four countries: China, the United States, Russia, and Japan. The United States is strongest in advanced fields such as aerospace, and thanks to sanctions against Russia, its titanium material exports have increased significantly.
However, it heavily relies on imports for raw materials (titanium sponge), with imports from Japan accounting for over 60% of its total imports. The US intends to promote domestic sponge titanium production through legislation. NATO and EU defense plans will also drive up regional titanium demand, and the EU is considering building its own titanium processing lines to reduce dependence on Russia, aiming for 40% domestic processing by 2030, while also promoting sponge titanium recycling and green technology applications.
Russia is a world leader in military and advanced technology applications, even surpassing the US in some areas, and plans to quadruple its production of aerospace-grade tabung titanium and accelerate market shifts towards Asia. Japan has the widest application of titanium materials in the civilian sector and strong R&kemampuan D.
China’s titanium industry maintains steady development, with titanium sponge production reaching 256,000 tons in 2024, a year-on-year increase of 17.6%, and a self-sufficiency rate of nearly 100%; titanium material production was approximately 170,000 tons, a year-on-year increase of 7%, accounting for 65% of the global total. The mass production of China’s C919 large aircraft and the surge in demand for hydrogen energy storage and transportation equipment have significantly boosted the localization rate of high-end titanium alloys from 30% to 50%.
It is expected that during the 15th Five-Year Plan period, benefiting from the low-price adjustment of titanium metals and further reductions in processing costs, global demand for sponge titanium and titanium materials will continue to grow, and the supply chain will undergo accelerated restructuring.