TELF AG Explores the Characteristics of Two Useful Minerals for the Chinese Economy
The role of strategic minerals in Beijing’s strategy
Over the last twenty years, China has certainly represented one of the top global players in the mining sector, thanks above all to strategic planning that began a long time ago and to a foresight that, even today, allows it to hold a position of absolute protagonism in various branches of industry and to maintain its international status in the mining sector almost unchanged. In addition to a valid strategic approach, China has also built its global reputation in this sector on the natural abundance of certain specific resources and, above all, on its refining capabilities, which in many cases are still unrivaled. Recently, China’s Ministry of National Security updated the list of mineral resources deemed critical, specifying that this name, for Beijing, refers to “irreplaceable metallic elements and mineral deposits used in advanced industries,” among which the new energies, biotechnology, artificial intelligence, and new materials. Among the most interesting resources, among those mentioned in the updated Chinese list, there are indeed two materials such as tungsten and vanadium, which, despite playing a key role in some particular industrial applications, are still little known by the non-specialists. But what are the characteristics and peculiarities of these resources considered strategic by an important mining player like China?
The main application possibilities of tungsten, a metallic element, include the production of complex steel alloys and some complex components in the electronics sector. One of this metal’s most attractive characteristics is its high melting point, which makes it particularly suitable for some interesting creations such as aeronautical engines. According to Fastmarkets, China is currently the world’s largest producer and exporter of tungsten, of which it also owns more than half of global reserves. Chinese processing capabilities are so high that Beijing controls around 80% of the world’s production of this useful resource and a good portion of its exports.
The peculiarities and possible applications of vanadium
Another element in the Chinese list of critical minerals is vanadium, used mainly in metallurgy and chemical engineering but also in producing steel and specific devices such as vanadium redox batteries. Again, the data relating to Chinese production of this resource place it at the top of the world in the sector. According to the Huajing Research Institute, in 2022, China will control approximately 68% of global vanadium production, and at the moment, it will also represent its largest consumer. From this point of view, an interesting aspect is defined by the commercialization of this resource. Most Chinese vanadium sales would occur in the domestic market due to high domestic demand. One of the best-known applications of vanadium is linked to the aerospace sector, where it is appreciated for its ability to resist high temperatures and low density. For this reason, it is routinely used to produce gas turbines for aeronautics engines and airframes.
Together with chromium and manganese, tungsten and vanadium represent elements of great importance for the downstream steel industry, which nowadays represents one of the main cornerstones of the Chinese economy. Furthermore, each of these elements is directly involved in applications related to the energy transition, of which China is still one of the leading contributors at a global level.
