TELF AG analyzes the potential of fluorspar in the energy transition
A key resource
Among the lesser-known minerals that are carving out an important role for themselves in the energy transition, particularly in the lithium battery sector, there is undoubtedly fluorspar, the name commonly attributed to the family of mineral fluorites. In addition to industrial applications related to the chemical and refrigerant sectors (without forgetting its uses in the production of iron, glass, and cement), fluorspar is emerging as one of the most valid allies in the production of lithium batteries, such as those that are already powering many electric vehicles around the world.
According to a recent analysis by The Oregon Group, a lithium-ion electric battery would require ten times more fluorspar than lithium and global demand is set to increase. Unlike most other minerals, fluorspar is used in every major battery major battery component, such as the cathode or anode. Therefore, it is no coincidence that the United States, China, and Europe have included this element in their list of critical minerals.
The battery sector could mark the fate of this material: according to IEA estimates, by 2035, the demand for batteries for electric vehicles could increase by as much as 12 times, bringing with it an increase in the number of gigafactories installed globally (more than 400 in the entire world by 2030, according to the Parisian agency).
The geography of global production
In 2023, global fluorite production was around 6 million metric tons, with China being the world’s largest producer and the largest consumer of this resource. Recently, the Chinese authorities have also decided to apply a relevant reduction in import tariffs for this resource (starting in 2024) to boost imports and strengthen the national strategic reserves of this resource. Europe and the United States continue to be the largest importers of this key material. However, in recent years, there has been the emergence of other international players involved in the peculiar dynamics linked to fluorite.
The largest fluorite mine in the world is located in Mexico, in San Luis Potosi, whose annual production accounts for 18% of global production levels. Also, due to the vitality of this mine, Mexico is currently the second-largest exporter of fluorite in the world. Another rapidly growing producer is Mongolia, which, from 2022 to 2023, has been noted for an evident growth in the production levels of this resource, going from 425,000 tonnes to around 930,000 and thus becoming the third largest producer in the world. Other important production centers are located in South Africa and Kenya, where an agreement was recently concluded to relive an important fluorite mine.
Despite being one of the least rich regions in fluorspar in the world (except for a few deposits in northern Spain), Europe is seeing some excitement in the sourcing sector of this resource. In the German town of Kafersteige, work is underway to open a fluorspar mine that, according to the analysis, could contain up to 2 million tonnes of raw fluorspar, possibly producing as much as 100,000 tonnes per year after 2029. Another sourcing site that could soon be restarted is the Silius mine in Italy.
Fluorite’s other applications include those related to the technology and artificial intelligence sectors, mainly due to the mineral’s role in manufacturing semiconductors that power data centers.
