Scandium oxide production capacity to further grow
----Interview with Donghong Nie
General Manager
Hunan Oriental Scandium Co., Ltd.
Hunan Oriental Scandium Co., Ltd. was established in August 2011 with a registered capital of RMB 127.6 million. As a holding subsidiary of LB Group, the company is recognized as a national high-tech enterprise and a national-level “Specialized, Refined, Distinctive, and Innovative Little Giant” enterprise. It owns three wholly-owned subsidiaries: Henan Rongjia Scandium & Vanadium Technology Co., Ltd., Henan Dongkang New Energy Material Technology Co., Ltd., and Yunnan Dongkang New Material Co., Ltd. At present, the company has an annual production capacity of 4 tons of metallic scandium, 300 tons of aluminum-scandium alloy, and 300 tons of scandium-containing aluminum alloy wire for 3D printing.
Asian Metal: Mr. Nie, thank you for joining us today. To begin with, could you please give us a brief introduction to your company and its main business?
Mr. Nie: Hunan Oriental Scandium Co., Ltd. was established in August 2011 with a registered capital of RMB 127.6 million. It is a holding subsidiary of LB Group, with three wholly-owned subsidiaries: Henan Rongjia Scandium & Vanadium Technology Co., Ltd., Henan Dongkang New Energy Material Technology Co., Ltd., and Yunnan Dongkang New Material Co., Ltd. Henan Rongjia Scandium & Vanadium Technology Co., Ltd. has been engaged in hydrometallurgical process research since 2011. In 2017, it commissioned a 10tpy scandium oxide production line using titanium dioxide by-product acid through the chloride process, which was upgraded in 2022 to a 40tpy high-purity scandium oxide facility, making it the world’s largest scandium oxide production base. Currently, the company has an annual production capacity of 4 tons of metallic scandium, 300 tons of aluminum-scandium alloy, and 300 tons of scandium-containing aluminum alloy wire for 3D printing.
Asian Metal: Could you share with us the current domestic scandium oxide production capacity and China’s output in 2024?
Mr. Nie: The current scandium oxide production capacity in China, including both scandium oxide and scandium-containing intermediates converted into scandium oxide equivalent, totals about 150 tons. With new planned projects, short-term production capacity could exceed 200 tons. In 2024, China’s scandium oxide output was approximately 90 tons. In addition, enterprises extracting scandium hydroxide, scandium oxalate, and other scandium-containing intermediates from nickel-cobalt by-products contributed around 58 tons in scandium oxide equivalent. Early in 2025, a domestic enterprise plans to launch a project utilizing spent lithium battery powder, which could produce more than 90 tons of scandium hydroxide, equivalent to around 60 tons of scandium oxide.
Asian Metal: How do you forecast China’s scandium oxide production capacity and output in 2025 and over the next 2–3 years?
Mr. Nie: I expect that China’s scandium oxide production capacity will reach 210 tons in 2025, while output is projected to rise to around 150 tons over the next 2–3 years.
Asian Metal: What are the main sources of scandium oxide raw materials in China, and what are their respective proportions?
Mr. Nie: The main raw material sources for scandium oxide in China are titanium dioxide by-product acid (about 53%), nickel-cobalt by-products (about 45%), and zirconium by-product liquids (about 2%). Studies have shown that aluminum slag contains about 0.05–0.06% scandium oxide, but due to high production costs, technical challenges, and environmental issues, no enterprise has yet adopted aluminum slag as a source for scandium oxide production.
Asian Metal: Could you also outline the current overseas scandium oxide production capacity and the 2024 output?
Mr. Nie: Overseas scandium oxide production capacity is about 13 tons, with 2024 output at roughly the same level. Of this, nickel-cobalt by-products account for around 7.5 tons, or 58% of overseas supply, primarily scandium oxalate production in the Philippines, which is then purified into scandium oxide in Japan. Canadian titanium dioxide by-product acid accounts for nearly 3 tons (23%), and Russian and other sources contribute around 2.5 tons (20%).
Asian Metal: What is your outlook for overseas scandium oxide production capacity and output over the next 2–3 years?
Mr. Nie: Countries such as the United States, Canada, Australia, and Turkey are actively developing scandium industries. In Europe, the European Institute of Innovation and Technology has launched the “ScaVanger” project in France, which aims to add 21 tons per year of scandium oxide production capacity starting in 2026, using titanium dioxide by-product acid as its main feedstock. Therefore, overseas scandium oxide production capacity and output are expected to increase by about 21 tons over the next 2–3 years.
Asian Metal: What was the global demand for scandium oxide in 2024, and what are the major downstream applications?
Mr. Nie: According to data released by the U.S. Geological Survey in January 2025, global scandium oxide consumption in 2024 was estimated at 30–40 tons per year. We estimate that actual demand was around 30 tons: approximately 20 tons for solid oxide fuel cells (SOFCs), about 2 tons for metallic scandium used in aluminum-scandium sputtering targets, around 6 tons for aluminum-scandium alloys, and about 2 tons for other applications.
Asian Metal: As the primary application of scandium oxide, how would you describe the current status of the solid oxide fuel cell industry?
Mr. Nie: The SOFC industry is still in the early stage of commercialization, with only a few companies in developed countries such as the U.S. and Japan having achieved commercial-scale applications. In the U.S., large-scale commercial and industrial SOFC power generation is supported, with Bloom Energy being the leading company globally. Its installed capacity has exceeded 400MW, providing hundreds of distributed fuel cell systems for companies such as Google, eBay, and Walmart. Bloom Energy is widely recognized as the strongest in technology and the most successful in operations within the SOFC industry.
Asian Metal: How do you view the development of the SOFC industry in China?
Mr. Nie: At present, there are no economically viable SOFC systems in China, and the industry still faces significant challenges. Demonstration projects have been initiated by companies such as Chaozhou Three-Circle Group, Weichai Power, Ningbo Sofuren, Hydrogen Tech, Huaqing Energy, and Zhejiang Zhentai Energy. However, only a few enterprises have adopted scandium-based electrolytes. On the academic front, research teams at Tsinghua University and Xi’an Jiaotong University are actively working on the development and application of scandium-stabilized zirconia materials for SOFCs.
Asian Metal: What do you see as the main challenges facing the scandium oxide industry today? Do you have any suggestions?
Mr. Nie: I believe there are three main challenges. The first one is oversupply. The pace of scandium supply growth has outstripped demand from downstream applications, leading to intense price competition among producers. The second one is the pace of SOFC commercialization. China’s SOFC industry has yet to achieve commercial-scale production. The third challenge is the policy and trade risks. According to the joint announcement No. 18 of 2025 issued by the Ministry of Commerce and the General Administration of Customs, China has implemented export controls on certain medium and heavy rare earth-related items. As a result, enterprises must apply for dual-use export licenses for scandium-related products, which impacts the expansion of international markets. In light of these challenges, I have the corresponding suggestion. First of all, the government should introduce supportive policies to promote the use of scandium-stabilized zirconia in SOFCs, accelerating technology development and commercialization to ensure healthy and sustainable industry growth. Secondly, for aluminum-scandium alloys and sputtering targets, China should leverage its raw material advantages and accumulated research base, strengthen collaboration across the industry chain, and accelerate the establishment and application of high-strength aluminum-scandium alloys, as well as the R&D and production of aluminum-scandium sputtering targets, supporting domestic high-end RF chip development. Finally, greater emphasis should be placed on recovering resources such as titanium dioxide by-product effluents to prevent resource loss, and on establishing a national strategic reserve for scandium resources.
Asian Metal: Thank you very much for your insightful sharing! We wish your company continued success.
Mr. Nie: Thank you! I also wish Asian Metal even greater success in the future.
