High-grade titanium feedstock is a hard constraint
The second choke point is at the opposite end of the chain: titanium feedstocks, specifically high-grade forms (natural rutile, synthetic rutile, and chloride-grade slag).
While ilmenite is abundant, truly high-TiO₂ feedstocks are relatively scarce and geographically concentrated. These are crucial for two things: chloride-process pigment (which requires feed ~90% TiO₂ or above for efficiency) and titanium metal production (sponge plants ideally use ultra-high-grade feed like rutile to avoid contamination).
Historically, natural rutile (95%+ TiO₂) came from only a few countries: Australia (especially Iluka’s mines in the 2000s), Sierra Leone, Ukraine, and a bit from South Africa and Kenya — but, output has been declining or stagnant:
- Iluka has noted diminished resources in its once-rich Australian rutile mines
- Sierra Leone’s rutile (Sierra Rutile Ltd) has struggled with operational issues and civil unrest
- and Ukraine’s large rutile production (from Irshansk and Vilnohirsk) nearly vanished in 2022 due to the war
In 2022, global natural rutile production was approx 0.65 million tonnes, not nearly enough to satisfy all chloride pigment and aerospace needs. Synthetic alternatives like upgraded titania slag (UGS) and synthetic rutile (SR) are also limited.
This means Western chloride pigment producers (Chemours, Kronos, Venator) often find themselves short of high-grade feedstock. They must compete for rutile or SR, driving the cost up.
Chinese pigment producers instead mostly use the sulfate process (over 80% of China’s TiO₂ output is sulfate-route), which uses ilmenite to avoid this high-grade feed dependency.
Without sufficient rutile or SR, Western chloride plants can’t run at full rates. In 2022–2023, some had to curtail output due to feedstock shortage and price spikes (rutile prices hit multi-year highs post-Ukraine invasion, as consumers scrambled to replace Ukrainian supply).
The choke point is even more acute for titanium metal producers. Sponge plants ideally want very pure feed (natural rutile or equivalent) to minimize impurities in the metal. The US has historically relied on Australia and others, but with Iluka’s rutile production grade declining and more rutile being diverted to pigment, the aerospace industry is facing a structural shortage of premium rutile-grade feed.
The supply of high-grade titanium feedstock is a hard constraint that limits both pigment production (West) and potential expansion of titanium metal production outside China.
Global natural rutile production was only about 0.63 million tonnes in 2022, insufficient to meet combined demand from chloride pigment and aerospace manufacturers. The limited supply drives competition among major Western chloride-route producers (Chemours, Kronos, Venator) for high-grade feed (natural rutile, synthetic rutile/SR, or upgraded titania slag/UGS).
Chinese titanium dioxide (TiO₂) producers mitigate this high-grade feed dependency by primarily using the sulfate process, which relies on more abundant, lower-grade ilmenite. This operational choice is reflected in China’s trade data, where approximately 81% of its total TiO2 exports in 2024 were sulfate-process material.
The limited supply of high-grade titanium feed constrains the operating rates of Western chloride-route pigment plants and limits potential expansion of titanium metal production outside of China.
