the market
Market Demand
The ever rising number of government initiatives to promote green energy and increasing developments in Lithium battery storage, is fuelling more demand for production of mono-C-Si cells, in turn fuelling more demand for High Purity Quartz. Thus, HPQ is a scarce strategic mineral which is in strong demand as a high-tech material and in a high growth market.
The HPQ market is heavily concentrated in two countries; USA and China and like the situation experienced in other critical strategic minerals such as rare earths where production and supply has been heavily concentrated in one country China, we believe there will be an urgent need to diversify future supply of HPQ to other countries such as Australia and such a trend should greatly assist our goals in Australia.
The current global market for HPQ is approximately US$1.0 billion p.a. and it is expected to increase to US$1.45 billion p.a. over the next 6 years. The USA is the major supplier of HPQ product at approximately 75% global market share, and China the major consumer of HPQ accounting for approximately 50% of the global market.
Only very few deposits in the world, including the Company’s deposits, are suitable in volume, quality and amenability to tailored refining methods for speciality high purity applications. As such high purity quartz has become one of today’s key strategic minerals which the Company is in a strong position to exploit.
The ever rising number of government initiatives to promote green energy and increasing developments in Lithium battery storage, is fuelling more demand for production of mono-C-Si cells, in turn fuelling more demand for High Purity Quartz. Thus, HPQ is a scarce strategic mineral which is in strong demand as a high-tech material and in a high growth market.
The HPQ market is heavily concentrated in two countries; USA and China and like the situation experienced in other critical strategic minerals such as rare earths where production and supply has been heavily concentrated in one country China, we believe there will be an urgent need to diversify future supply of HPQ to other countries such as Australia and such a trend should greatly assist our goals in Australia.
The current global market for HPQ is approximately US$1.0 billion p.a. and it is expected to increase to US$1.45 billion p.a. over the next 6 years. The USA is the major supplier of HPQ product at approximately 75% global market share, and China the major consumer of HPQ accounting for approximately 50% of the global market.
Only very few deposits in the world, including the Company’s deposits, are suitable in volume, quality and amenability to tailored refining methods for speciality high purity applications. As such high purity quartz has become one of today’s key strategic minerals which the Company is in a strong position to exploit.
Market Supply
North America dominates the Global High Purity Quartz production, amid presence of Unimin Corp./Sibelco, with an estimated production share of 75% Spruce Pine, North Carolina, US, is considered as the principal source for natural high purity quartz, which is commonly used in the manufacturing of semiconductor and solar crucibles. The mine is estimated to contain a significant amount of high purity quartz and is expected to meet demand for the coming years.
The Quartz Corp. is the second company operating in Spruce Pine, however, the companies processing facility is located in Norway, and adds to the European production.
The Russian Quartz LLC coupled with a small number of other players in Russia and Norway, together, has led Europe to account for a production share of 14.4% Donghai province in China, dominated by Pacific Quartz and other numerous small players, has led Asia Pacific to take a stand with 10.0%.
North America dominates the Global High Purity Quartz production, amid presence of Unimin Corp./Sibelco, with an estimated production share of 75% Spruce Pine, North Carolina, US, is considered as the principal source for natural high purity quartz, which is commonly used in the manufacturing of semiconductor and solar crucibles. The mine is estimated to contain a significant amount of high purity quartz and is expected to meet demand for the coming years.
The Quartz Corp. is the second company operating in Spruce Pine, however, the companies processing facility is located in Norway, and adds to the European production.
The Russian Quartz LLC coupled with a small number of other players in Russia and Norway, together, has led Europe to account for a production share of 14.4% Donghai province in China, dominated by Pacific Quartz and other numerous small players, has led Asia Pacific to take a stand with 10.0%.
Market Dynamics
Increase in demand for solar PV across the globe, is the most prominent factor driving the consumption of High Purity Quartz, as HPQ forms an integral component in manufacturing chain of solar C-Si cells.
HPQ also forms an indispensable component in the semiconductor industry, due to the high purity and inert nature of HPQ. Demand for HPQ from the semiconductor industry is already high, plus future increasing demand is anticipated to come from new wafer fab units, and the transition from 300mm to 450 mm wafer manufacturing. In addition, low to medium grades of HPQ are also used for manufacturing tubing for high intensity lighting, for which there is an increasing demand in high spec vehicles, for example.
The rapidly expanding telecom infrastructure is also significantly driving the demand for HPQ. Particularly from major optical fibre manufacturers, in which HPQ is used for cladding purposes. Furthermore, increasing demand for high end heads-up displays, binoculars and microscopes, is also adding consumption numbers to the global high purity quartz market. Apart from this, in recent years, many new sectors have sprouted where there are new demands for HPQ, special applications such as, wool insulation and catalysts for various chemical processes.
Increase in demand for solar PV across the globe, is the most prominent factor driving the consumption of High Purity Quartz, as HPQ forms an integral component in manufacturing chain of solar C-Si cells.
HPQ also forms an indispensable component in the semiconductor industry, due to the high purity and inert nature of HPQ. Demand for HPQ from the semiconductor industry is already high, plus future increasing demand is anticipated to come from new wafer fab units, and the transition from 300mm to 450 mm wafer manufacturing. In addition, low to medium grades of HPQ are also used for manufacturing tubing for high intensity lighting, for which there is an increasing demand in high spec vehicles, for example.
The rapidly expanding telecom infrastructure is also significantly driving the demand for HPQ. Particularly from major optical fibre manufacturers, in which HPQ is used for cladding purposes. Furthermore, increasing demand for high end heads-up displays, binoculars and microscopes, is also adding consumption numbers to the global high purity quartz market. Apart from this, in recent years, many new sectors have sprouted where there are new demands for HPQ, special applications such as, wool insulation and catalysts for various chemical processes.