U.S. Depends 100% on Imported Titanium, BIS Working Group Finds

The Titanium Sponge Working Group (TSWG), established under the Trump administration in 2020, has released a report highlighting increased dependence of the U.S. on imported titanium sponge, a crucial raw material for titanium metal production.

The report comes in the wake of the closure of the Titanium Metals Corporation (TIMET)'s Henderson, Nevada plant, marking the end of domestic production.

According to the TSWG's findings, U.S. dependency on imported titanium sponge has risen dramatically from 68% in 2020 to 100% today, emphasizing a severe reliance on overseas supplies. These findings underscore the urgency for measures ensuring access to this critical input, which plays a pivotal role in the defense and industrial sectors, particularly in aerospace applications.

The report states that the U.S. retains approximately 25% of the global titanium melt capacity, trailing China at 33% and leading Russia with 15%. However, with TIMET's closure in July 2020, all domestic titanium sponge production has ceased. The top four global producers of the sponge since 2010 have been China, Japan, Russia, and Kazakhstan.

Japan accounts for about 90% of U.S. imports. The TSWG report found Japan has exhibited the capability and willingness to meet varying U.S. titanium demands. Similarly, six respondents cited Kazakhstan as a reliable alternative to Japan, offering high-quality sponge.

Respondents recommended eliminating the current 15% tariff on titanium sponge imports. They argue that since TIMET's shutdown, the tariff has only escalated costs for the four U.S. companies that depend on imported titanium sponge for producing titanium metal.

The TSWG's recommendations include adding titanium materials to the National Defense Stockpile, restructuring titanium-related product tariffs, promoting recycling programs, funding innovation in the titanium metal and aerospace industries, and maintaining relationships with Japan and other allies with titanium sponge capacity.

The report also suggests that fostering and investing in technologies that allow for increased usage of titanium scrap can potentially reduce reliance on titanium sponge imports.

"The continued availability of low-priced, high-quality titanium sponge from long-term and reliable suppliers will likely ensure that future investments will not be justified," the report concluded. The TSWG, therefore, emphasizes the importance of maintaining robust relationships with Japan and other allies for titanium supply.

 [report].