London, May 19th (Argus) - Finnish metal producer Terrafame has initiated a pre-feasibility study to assess the recovery of scandium in its nickel and zinc production process located in Sotkamo, eastern Finland.
The company has already produced battery-grade nickel, cobalt, and copper, and recovers uranium as a by-product from the same multi-metallic ore. The production of scandium will also be extracted from these existing hydrometallurgical processes.
The study is expected to be completed by the end of 2026, with a potential production target of 2029. If the development is successful, this project will make Terrafame the sole scandium producer in Europe.
China dominates global scandium supply - accounting for approximately 85% - and last year strengthened its export control of the metal, sparking interest in alternative sources. According to data from the US Geological Survey, global production remains limited to 40-45 tons per year, while the consumption is expected to reach approximately 60 tons per year in 2025. In the next 10 years, a few projects worldwide (including those of NioCorp, Rio Tinto in Rio de Janeiro, and Sunrise) may increase supply to 150-250 tons per year.
This has raised concerns among some that if all projects were to commence, there could be a situation of oversupply. NioCorp recently told Argus that any concerns about oversupply are premature, as once supply improves, demand is expected to increase.
