03 April 2025

Brazil's niobium: A global strategic asset

The global niobium industry is driven by key producers across various regions, each with distinct histories, extraction methods, and market roles. Today, we take a look at CBMM’s Araxá mine in Brazil, the most significant player in niobium supply and market development. This mine's substantial output highlights the critical role Brazil plays in the global niobium market, a role that is becoming increasingly vital as nations seek to secure strategic supply chains. Niobium is increasingly being designated a critical mineral.

Niobium is indispensable for high-performance alloys that underpin the aerospace and automotive industries. The European Union currently sources 92% of its niobium from Brazil, highlighting a significant supply vulnerability. Niobium’s applications in superconductors and energy storage further reinforce its importance to emerging and future technologies. The growing demand for lightweight, high-strength materials is accelerating global interest in niobium, particularly as dependence on a single major supplier exposes strategic industries to heightened supply chain risks.

Jamie Underwood

Principal Consultant

From its applications in defence systems, where its unique properties are irreplaceable, to its pivotal role in green technologies and infrastructure, niobium’s economic and strategic significance is undeniable. Niobium is essential for the advancement of low-carbon and green technologies. Its classification as a critical mineral stems from both its vital applications and the concentrated nature of its supply. One of its most impactful uses is in steelmaking. The addition of just 0.1% niobium to steel produces high-strength, low-alloy (HSLA) variants, allowing for the construction of lighter, more durable structures. This not only reduces the quantity of material required but also contributes to lower carbon emissions. HSLA steels are particularly valuable for building wind turbine towers, pipelines, and hydrogen gas transmission infrastructure.

Niobium’s contribution to renewable energy systems is equally important. Its excellent strength-to-weight ratio makes it vital for wind turbine frames, while in solar and hydrogen technologies, it boosts the efficiency of solar cells and enhances the longevity of hydrogen fuel cells. In sustainable manufacturing, niobium supports the production of high-performance components via 3D printing, reducing both weight and material waste.

Dr Sandeep Kaler

Market Strategy Analyst

However, the global recycling rate for niobium remains extremely low, revealing untapped potential for circular economy strategies, especially in high-value applications like superconductors and advanced batteries. This low recycling rate further amplifies the criticality of its primary supply.

The criticality of niobium is largely due to its concentrated supply. Approximately 90% of global niobium production comes from Brazil, with Canada as the only other significant source. The United States has had no domestic production since 1959, and both the US and EU are wholly reliant on imports. Beyond its scarcity, niobium is difficult to substitute. It is a core material in the defence and aerospace sectors, used in jet engines, missiles, and military systems where few or no viable alternatives exist.

Ismet Soyocak

ESG and Critical Minerals Lead

EU Criticality Assessment of Strategic Commodities

Source: SFA (Oxford), Study on the EU's list of Critical Raw Materials (2020)

Niobium plays a crucial role in advanced materials and high-performance applications, with demand primarily driven by its use in steel, strategic industries, and emerging technologies. Steel alone accounts for 85–90% of global niobium consumption, serving as a microalloying element to enhance strength, toughness, and weldability. As global regulations increasingly push industries towards lighter and stronger materials, average niobium intensities in steel manufacturing are rising.

China is currently the world’s largest consumer of niobium, with demand propelled by its infrastructure development and automotive growth. However, as China’s economy matures and steel output plateaus, demand growth is expected to shift to the rest of the world (ROW) after 2030. While steel is set to remain the dominant driver of niobium demand, growth rates are likely to moderate in advanced economies where steel markets are approaching maturity.

Steel remains the backbone of niobium usage, with high-strength, low-alloy (HSLA) and structural steels accounting for the majority share through to 2035. Nonetheless, demand from other sectors, such as aerospace and electronics, is steadily increasing. In particular, interest in niobium for use in batteries is growing, although its uptake heavily depends on the successful commercialisation of early-stage niobium-based technologies. Despite steel’s continued dominance, emerging applications are beginning to expand niobium’s demand profile.

CBMM, the world’s leading niobium producer, primarily shaped the supply landscape. The company’s strategy centres on aligning production with demand, allowing it to scale output flexibly in response to market needs. This responsive model, however, could pose challenges for new niobium projects seeking investment, as CBMM’s dominant position reduces incentives for alternative supply. Anticipating a significant rise in demand—particularly from battery markets, which are projected to account for 25% of company revenues by 2030—CBMM has already increased its output of battery-grade niobium.

Niobium’s potential in the battery space hinges on its ability to compete with established technologies. Niobium-based anodes offer high-speed charging and long cycle life, often exceeding tens of thousands of cycles. However, their lower energy density than graphite or silicon anodes poses a challenge, especially for electric vehicle (EV) applications where energy density is critical. To achieve broader adoption, niobium battery technologies must overcome this performance gap and significantly reduce costs through economies of scale or further technological innovation.

Niobium demand from 2000 to 2023
kt

Strategic investment into battery technologies

In the realm of battery technology, niobium offers notable benefits. When incorporated into lithium-ion batteries, it extends their lifespan, allows for faster charging, and improves safety. This contributes to a reduction in the frequency of battery replacements and associated waste. Niobium is also utilised in electrodes, nanocrystalline materials, and components of charging infrastructure such as inverters and transformers, supporting the efficient storage and distribution of renewable energy.

CBMM has been making significant strides in the electric vehicle (EV) battery sector as part of its strategic expansion into advanced material applications. In August 2024, the company signed a joint development agreement with NOVONIX Limited to enhance the performance and cost-efficiency of nickel-based cathode materials for batteries. This collaboration focuses on developing cathode active materials (CAM), leveraging CBMM’s advanced niobium products to deliver superior battery solutions.

In 2019, CBMM set up a laboratory to develop oxides for batteries, its production was ~100 g per day, primarily intended for samples. Six months after starting CBMM invested R$15 million to build a pilot plant to produce 20 kg of material per day. CBMM has allocated $80 million to establish its first industrial-scale niobium oxide refining facility in Brazil. Set to commence production before the end of 2024, the plant will have a capacity 3 ktpa, designed specifically to meet the increasing demand for niobium oxide in battery applications.

CBMM is also driving innovation in battery anode technology. In collaboration with Echion Technologies, the company inaugurated a niobium-based anode production facility in Araxá, Brazil. This cutting-edge plant can produce 2 kt of XNO annually, equivalent to 1 GWh of lithium-ion cells. XNO is designed to improve battery performance, offering faster charging times, enhanced safety, and greater durability compared to traditional graphite anodes.

CBMM’s partnerships extend further, including collaborations with Toshiba Corporation and Volkswagen AG to develop new battery applications. One of the most groundbreaking projects is the planned unveiling of the world’s first electric bus powered by lithium batteries using mixed niobium and titanium oxide technology, expected in 2024 and will remain at its plant in Araxá to demonstrate the technology as a showcase.

The company has also seen substantial growth in battery materials sales. These sales rose from 400 tonnes in 2022 to 600 tonnes in 2023, with projections exceeding 1,000 tonnes in 2024. CBMM forecasts that niobium for battery technologies will account for 25% of its total revenue by 2030, a significant leap from the current 5%. This rapid growth highlights CBMM’s role in shaping the future of energy storage and electric mobility.

CBMM has acquired a 20% stake in Battery Streak (BSI) to develop niobium-based technologies for lithium-ion batteries. BSI’s patented nanostructured niobium oxide anode enhances battery performance in micromobility, medical devices, electronics, and drones.

It has also partnered with Skeleton, an Estonian leader in supercapacitors, to advance high-performance batteries offering rapid charge rates and 20 times the durability of traditional batteries. Additionally, CBMM is electrifying its industrial operations with niobium-containing batteries, including deploying an ultra-fast charging electric truck at its facilities.

Niobium in Brazil: Geology, Deposits, and Global Dominance

Niobium is widely distributed in the Earth's crust, although it is rarely found in high concentrations. Over 90 different niobium-bearing minerals have been identified, but most occur in trace amounts or within complex mineral assemblages, making extraction uneconomical. Despite the abundance of such minerals, only two are considered commercially significant due to their relatively high niobium oxide (Nb₂O₅) content and suitability for mining and processing: pyrochlore and columbite-tantalite.

Pyrochlore is the primary commercial source of niobium. Typically hosted in carbonatite intrusions—a rare type of igneous rock enriched in carbonate minerals—pyrochlore can contain up to 71% Nb₂O₅ in its purest form. These intrusions are thought to originate from deep mantle sources, creating ideal conditions for the accumulation of niobium in economically viable concentrations. Pyrochlore is often found alongside elements such as titanium, uranium, and rare earth elements. The world’s largest deposits are located in Brazil and Canada, with Brazil possessing the most economically significant reserves.

Columbite-tantalite (commonly referred to as coltan) is a solid solution series between columbite ((Fe, Mn)Nb₂O₆) and tantalite ((Fe, Mn)Ta₂O₆). It is predominantly found in pegmatite-hosted deposits across Africa, South America, and Australia. These granitic pegmatites form during the final stages of magma crystallisation and are known for concentrating rare metals through prolonged fractional crystallisation processes. Although columbite-tantalite can contain up to 76% Nb₂O₅, the niobium content varies considerably and it is more commonly mined for its tantalum, which is in high demand for electronics.

Pyrochlore remains the dominant source of niobium due to its relative abundance and efficiency in extraction and refining. Brazil alone controls over 97% of the world’s exploitable niobium reserves. The most significant deposit is located in Araxá, Minas Gerais, where Companhia Brasileira de Metalurgia e Mineração (CBMM) operates the world’s largest pyrochlore mine. Niobium is not found in isolation but is typically associated with various impurities. The refining process depends on ore composition and the removal of these impurities, which affects processing routes and economic feasibility.

Brazil, spanning 8.5 million square kilometres, is the fifth-largest country in the world and a global leader in the production of specialist metals. In addition to its dominance in niobium, Brazil ranks among the top five producers of tantalum and is a major source of iron ore, bauxite, manganese, and tin. The distribution of niobium and tantalum deposits across Brazil varies according to geological formations and the economic viability of extraction.

Seven key areas across Brazil host known niobium deposits, with high-grade reserves geographically concentrated in the country. The largest unmined resource has been identified in Seis Lagos, located in the remote northwest. However, most current production is centred in the southeast, where the Araxá and Boa Vista mines are Brazil’s only primary niobium producers. In contrast, the Pitinga and Mibra mines recover niobium as a by-product from operations primarily focused on other metals.

Primary niobium supply and CBMM's influence

Three producers currently control the majority of the world’s niobium supply: CBMM, CMOC, and Magris Performance Materials. Historically, primary niobium producers have been sensitive to fluctuations in economic conditions and industrial demand, with production levels closely tied to broader market trends. Niobium production is notably price elastic, particularly given the dominance of CBMM, which has traditionally influenced global supply dynamics and pricing behaviour.

Niobium mine supply, 2000 to 2023
kt

Source: SFA (Oxford)

Strategic partnership powers niobium mining in Araxá

The mining of niobium is carried out by COMIPA in an open-pit operation without the use of explosives. Mining activities cover an area of approximately three square kilometres, using bulldozers, front-end loaders, and trucks. Over time, the weathered ore pit is expected to expand to five square kilometres.

The Economic Development Company of Minas Gerais (CODEMIG) and the Brazilian Metallurgy and Mining Company (CBMM) jointly manage the Mining Company of Araxá (COMIPA), which oversees their partnership. Decisions regarding the partnership and the overall management of COMIPA require unanimous agreement between CODEMIG and CBMM. Both companies lease their mining rights to COMIPA for operations.

In the 1950s, mineral rights to explore the pyrochlore reserve in Araxá were granted to CBMM and the government of Minas Gerais (through the Minas Gerais Industrial Development Company (CAMIG), now CODEMIG). This led to the establishment of a partnership between CBMM and CODEMIG, which was formalised in 1972 at the request of the Minas Gerais state government. The partnership evolved into an association to jointly explore pyrochlore ore within the designated areas granted to both entities.

This new arrangement created two entities:

1. Mining Company of Araxá (COMIPA) – A corporation responsible for mining the pyrochlore ore from the two areas in equal parts and selling it exclusively to the second entity.

2. Profit-Sharing Partnership (PSP) – An organisation responsible for processing, industrialising, and commercialising the ore. COMIPA sells the mined material to the PSP at cost plus a 5% margin.

Within the PSP structure, CODEMIG acts as the managing partner, while CBMM is a silent partner. According to the agreement, CODEMIG receives 25% of the PSP’s profits.

The charts below highlight CBMM's steady production growth and capacity investment to meet future ferro-niobium and special niobium product demand.

CBMM ferro-niobium production history, 2000-2023
kt

CBMM special products history, 2000-2023
kt Nb

CBMM Special Products Plant Capacity, 2024
kt

Source: SFA (Oxford), CBMM

CBMM sales, 2023

Mining and blending at Araxá

At the Araxá mine, large quantities of ore-containing material are extracted using trucks and tractors, with niobium concentrations in this material varying significantly, ranging from 1% to 7% (w/w). This variability poses challenges for downstream processing, necessitating a blending step to ensure a consistent feedstock. The most common method employed is the chevron-type pile system: ore stacking involves depositing layers of material with different niobium concentrations horizontally by an ore stacker to form a prismatic pile. Once the pile reaches a certain height, an ore reclaimer slices vertically across the pile, mixing material from all layers to create a homogeneous blend. This feedstock is then sent to the concentration plant for further processing.

After homogenisation, the low niobium concentration in the ore requires enrichment to increase the niobium content to levels suitable for subsequent processing and product development.

By blending and enriching the ore, the Araxá operation ensures efficient and consistent production of niobium, supporting its status as the world’s most significant source of this essential metal.

Pyrochlore, derived from carbonatite rocks containing calcite and dolomite, requires precise ore granulometry and efficient gangue removal to produce an acceptable concentrate for downstream processing. Major operations including CBMM, Niobec, CMOC, and Mrima Hill, have used systems to process pyrochlore from carbonatites.

Niobium demand is highly sensitive to vanadium prices and key macro events

The steel sector responds rapidly to vanadium price swings by substituting with niobium as a microalloying element. During price spikes, such as in 2005, 2008, and 2018, steelmakers increasingly shift from vanadium to niobium to maintain cost-efficiency. In turn, CBMM, the world’s leading niobium producer, ramps up niobium supply to meet this rising demand. CBMM’s ability to flex production to stabilise the market results in less dramatic price swings for niobium.

CBMM’s ability to flex production acts as a stabilising force in the market, preventing the kind of extreme price volatility often seen with vanadium.

This market-balancing strategy enables quick substitution when vanadium prices become unsustainable. Once prices correct, niobium demand tends to stabilise accordingly. Regulatory trends also influence this dynamic, stricter standards for high-strength steel have steadily increased structural demand for niobium.

However, niobium demand remains vulnerable to macroeconomic downturns, as overall steel production typically declines during such periods.

Niobium supply vs. ferro-niobium prices, 2000 to 2023

Source: SFA (Oxford), FerroAlloys.net

ESG Analysis of World’s Largest Niobium Producer, CBMM

ESG strengths

ESG aligned market opportunities

ESG risks

• Global leader in Niobium production, heavily investing in innovation and R&D (R$230 million in 2023), notably in battery technology.

• Robust environmental performance with initiatives such as achieving 96.6% water recirculation in operations.

• Strong commitment to decarbonisation, targeting zero carbon emissions by 2040 for Scopes 1 and 2, reinforced by achieving the GHG Protocol Gold Seal.

• Robust governance structures and ISO 37001 certification in anti-bribery management.

• Extensive social responsibility efforts, investing R$39 million in community projects, impacting over 370,000 people locally.

• Dedicated Technology Centre conducting advanced research on sustainable applications for Niobium.

• Strategic partnerships with technology companies (e.g., Toshiba, Volkswagen, Skeleton Technologies) to accelerate the adoption of Niobium in batteries, supercapacitors, and renewable infrastructure.

• Commitment to local socio-economic development and environmental education in Araxá, Brazil, emphasising biodiversity conservation and community engagement.

• Advanced tailings and waste management practices, including continuous monitoring and independent audits, minimising environmental impacts and ensuring operational safety.

• Expansion into the battery market and other green technologies, reflected by a 53% increase in battery product sales in 2023, underpinned by major investments such as the R$400 million battery oxide facility.

• Improved ESG alignment through proactive strategies, including decarbonisation plans, biodiversity conservation, and circular economy initiatives via by-product recovery (e.g., magnetite and barite).

• Enhanced ESG performance and reporting transparency may strengthen long-term investor confidence and bolster market capitalisation, particularly as sustainability metrics become increasingly influential in global financial markets.

• CBMM’s emphasis on open innovation and partnerships with academic institutions and start-ups provides a strong foundation to harness emerging ESG-related trends and technologies.

• Significant potential to lead global efforts in niobium recycling, addressing currently low recycling rates (~0.3%) and supporting a more resilient and circular supply chain.

• Rising global demand for ethically and sustainably sourced critical minerals will further reinforce CBMM’s positioning, given its established ESG credentials and commitment to supply chain transparency.

• High dependency on the steel industry, with around 91% of sales in this sector, limiting revenue diversification.

• Early stage in Scope 3 emissions mapping, with significant work required for a comprehensive reduction strategy.

• Geographic concentration in Brazil poses geopolitical and economic risks, potentially affecting global supply.

• Climate change poses operational risks and potential regulatory challenges globally.

• Potential competition or substitution if alternative technologies or materials emerge, although currently limited.

History of CBMM: 1953 – 2019

CBMM (Companhia Brasileira de Metalurgia e Mineração) began in 1953, when Brazilian engineer and geoscientist Djalma Guimarães discovered the world’s largest pyrochlore deposit in Araxá, Brazil. This discovery marked the birth of an industry that would transform the use of niobium, a versatile and essential element for modern technologies. Just two years later, in 1955, CBMM was officially founded, laying the foundation for its long-standing contributions to mining, metallurgy, and innovation.

In 1961, CBMM began mining and production operations in Araxá, a location that remains central to its global operations. Four years later, the Moreira Salles Group acquired majority control, setting the stage for the company's expansion and influence. By 1972, CBMM had launched the Niobium Technology Program in the United States, marking its initial foray into international innovation. The following year, a partnership with the Brazilian state of Minas Gerais (now Codemig) further solidified its commitment to sustainable development.

The 1970s were a period of significant growth. CBMM began ferroniobium production in Araxá in 1975 and expanded globally with offices in Germany (1975), the United States (1977), and Japan (1979). This decade also saw the company start its technology activities in Moscow and China, paving the way for deeper technical cooperation worldwide. By the end of the decade, CBMM’s ferroniobium production capacity had reached 15 kt, alongside a large-scale niobium oxide production line.

The 1980s were marked by advancements in technology and sustainability. CBMM began producing vacuum-grade alloys in 1982 and expanded ferroniobium production to 26 kt by 1989. Environmental stewardship took centre stage with the inauguration of the Conservation Breeding Center in 1986 and the implementation of an Environmental Education Program in 1991. By 1997, CBMM became the first mining and metallurgy company in the world to achieve ISO 14001 certification for its environmental management systems.

The 2000s brought a focus on certifications, sustainability, and expanding production capabilities. CBMM's ferroniobium production soared from 45 kt in 2000 to 90 kt by 2008. The company also achieved significant milestones, such as ISO 27001 certification for information security and OHSAS 18001 certification for health and safety. At the same time, CBMM launched campaigns to preserve the Brazilian Cerrado biome, reaffirming its commitment to environmental conservation.

In the 2010s, CBMM further cemented its role as a global leader in niobium technologies. A Chinese consortium and a Japanese/South Korean consortium each acquired 15% stakes in the company in 2011, reflecting CBMM's global significance. Partnerships with leading global companies followed, including Toshiba in 2018 to develop advanced lithium batteries using niobium-titanium oxides. The company also expanded its facilities, including the inauguration of the Metallurgical Materials and Processes Research Center in Araxá in 2017, to drive research and development.

By 2019, CBMM was celebrating 40 years of technical cooperation with China while holding the inaugural CBMM Science and Technology Award. Investments in cutting-edge technologies, such as Graphene through its partnership with 2DM.

From its inception in 1953 to its current status as the world leader in niobium technology, CBMM’s journey has been defined by continuous innovation and strategic global partnerships. Today, the company plays a pivotal role in developing and scaling niobium applications across high-impact sectors highlight niobium's versatility and CBMM’s commitment to enabling technological progress worldwide.

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