As a niche yet high-strategic rare metal, hafnium (Hf, atomic number 72) lags behind common metals like copper in public awareness, but its unique physicochemical properties make it irreplaceable for nuclear power, aerospace, semiconductors and other high-end fields. This concise breakdown covers its core traits, supply dynamics and critical applications to highlight its underrecognized role in advanced manufacturing. I. Core Properties A silver-gray, high-melting-point transition metal, hafnium exists solely as a zirconium-associated metal—no independent ore deposits. The near-identical atomic radius and chemical properties of zirconium and hafnium make separation/purification highly challenging, the root of its scarcity.Key strengths for harsh industrial use: 2233℃ melting point, exceptional high-temperature oxidation/structural stability Strong room-temperature plasticity, balanced strength and toughness Superior corrosion resistance (insoluble in dilute acids/alkalis, soluble only in hydrofluoric acid/aqua regia) ~600x higher thermal neutron absorption than zirconium (ideal for nuclear reactor control) High dielectric constant of hafnium oxide (critical for advanced semiconductors) Carbides/nitrides (melting point >2900℃) for ultra-high-temperature ceramics and hard alloys II. Supply & Scarcity Resources: Extremely scarce (crustal abundance ~3 ppm), exclusively tied to zirconium ores. Global resources concentrated in Australia, South Africa, the U.S. and Brazil; China faces low hafnium content in domestic zirconium ores, leading to high external dependence. Supply: Production hinges on zirconium smelting, with zirconium-hafnium separation as a core technical barrier. Only a handful of global players produce high-purity (nuclear/electronic-grade) hafnium at scale, forming an oligopoly. Annual output is ~hundreds of tons, with ultra-low supply elasticity—supply disruptions trigger sharp price swings. Ⅲ. Irreplaceable Core Applications Demand is rigid (no cost-effective substitutes) across high-end sectors: Nuclear Industry: Preferred material for pressurized water reactor control rods, regulating reaction rates and ensuring safety. Driven by global nuclear power revival, demand is steadily growing. Aerospace: Key nickel-based single-crystal superalloy additive, boosting high-temperature creep strength and lifespan for aero-engine turbine blades, combustors and rocket nozzles. Semiconductors: High-purity electronic-grade hafnium oxide overcomes silicon dioxide’s miniaturization limits, reducing leakage current and enabling advanced-node chip production—a key growth driver. Other High-End Fields: Used in cutting tool coatings, special electronic components, corrosion-resistant materials and emerging hydrogen storage research, with expanding use cases. Ⅳ. Conclusion Hafnium is a "scarce niche metal with rigid high-end demand," holding irreplaceable strategic value in China’s key industries (nuclear power, aerospace, semiconductors). The global market remains in long-term tight supply-demand balance, and its strategic and market value will rise alongside global advanced manufacturing upgrades.

Influenced by downstream demand, the supply of zirconium-based refractories (glass and steel) is expected to increase slightly until 2026, but the operating rate has been maintained at around 60% in recent years.

Solid-state battery concept opens low and rises high; Oriental Zirconium Industry rises to limit upturn. In early trading, the solid-state battery concept opened low and rose high, while Oriental Zirconium Industry surged to the limit, Zijian Electronics rose by 20CM limit, Sanxiang New Materials, Dangsheng Technology, Nandu Power, Ruitai New Materials, etc. rose by more than 5%. In terms of news, recently, Chongqing-based Tailan New Energy announced a major breakthrough in solid-state battery technology. The company has successfully developed a vehicle-grade individual capacity of 120Ah and a measured energy density of up to 720Wh/kg, super high-energy density, large-scale solid-state lithium-metal batteries.

[SMM Flash News: Antimony, Bismuth, and Cobalt Prices Continue to Rise; Minor Metal Sector Gains for Three Consecutive Days, With Orient Zirconium and CMOC Leading the Gains] Driven by the continuous rise in spot prices of antimony, bismuth, and cobalt, stocks related to the minor metal sector remained active. The minor metal sector has recorded gains for three consecutive trading days. As of the close on March 10, the minor metal sector rose by 1.05%. In terms of individual stocks: Orient Zirconium hit the daily limit, CMOC rose by 8.62%, while Beifang Rare Earth Technology, Yunnan Germanium, Yongshan Lithium, and Jinduicheng Molybdenum also posted significant gains.

A-share solid-state battery concept continues to strengthen, Sanxiang new materials hit the daily limit for 5 consecutive days, Dongfang Zirconium Industry also hit the daily limit, Hezong Technology, Xiangfenghua, Guansheng Shares, Jinlongyu, etc. are among the top gainers. On the news front, Zhiji L6 will be equipped with the industry's first mass-produced ultra-fast charge solid-state battery, leading the new energy vehicles into the era of solid-state batteries.

[Ministry of Natural Resources: China's Domestic Lithium Resources Increased by Over 30% Last Year] ① China has achieved significant breakthroughs in strategic emerging industry minerals such as lithium, zirconium-hafnium, helium, and rare earths; ② The next step is to expedite the drafting of the "Regulations on the Implementation of the Mineral Resources Law." (Cailian Press)

The 2023 annual performance forecast released by Shenghe Resources shows: According to preliminary calculations by the financial department, the net profit attributable to the owners of the parent company is expected to be 300 million yuan to 390 million yuan in 2023, down 75.53% to 81.17% compared with the same period last year. It is expected that the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses in 2023 will be 225 million yuan to 315 million yuan, down by 79.80% to 85.57%.

According to the Guangxi Zhuang Autonomous Region Geological and Mineral Bureau, during the period from 2021 to 2024, the bureau actively carried out exploration of strategic minerals such as aluminum, manganese, tin, antimony, tungsten, zirconium, nickel, rare earths, and fluorite, as well as minerals urgently needed by industries such as quartz sand and calcium carbonate, achieving remarkable results. By the end of 2024, a total of 14 medium- and large-sized deposits of bauxite, manganese ore, fluorite, tin, and rare earths had been discovered. Additionally, resources of 4.8 billion mt of calcium carbonate, 1.5 billion mt of quartz sand, and 360,000 mt of lead-zinc were identified, significantly promoting the development of mineral resources and industries in Guangxi.

[Russia plans to break its reliance on imported scarce metals and accelerate the development of lithium mining projects] According to TASS, Russia is expected to eliminate its dependence on imports of 12 types of scarce metals, including lithium and rare earth metals, by 2030. The director of the Federal Agency for Subsoil Use said, "Other minerals include niobium, tantalum, zirconium, and manganese. Due to a series of measures taken, we expect to eliminate the dependence on imports of 12 types of scarce raw materials by 2030. Part of the production will be exported." So far, Russia has not mined lithium, which is used in the nuclear power industry, energy storage systems, and electric vehicle batteries. However, according to a statement from Rosatom, a Russian state-owned nuclear energy company, several mineral deposits have begun to accelerate the development of lithium mining projects. The company estimates that Russia's domestic demand for lithium is about 400 to 700 tons per year. (Jinshi Data)

The investor relations record recently announced by Shenghe Resources shows the following: 1. What are the main considerations for the company's proposed further acquisition of Peak's equity? Shenghe Resources responded: The company adheres to rare earth business as its core, while also considering zirconium and titanium. It leverages both domestic and international resources and markets, with the vision of becoming a responsible international supplier of key raw materials. To further consolidate the company's resource base for development, optimize its global business layout, and promote the rapid implementation and development of the Ngualla rare earth mine project, through friendly consultations, Chenguang Rare Earth, a wholly-owned subsidiary of the company, has agreed with Peak and intends to sign a "Scheme Implementation Deed" with the main content being the acquisition of all ordinary shares issued by Peak to external parties. 2. What is the latest progress of the Peak acquisition project? Shenghe Resources responded: After the official disclosure of the project plan, the relevant internal teams of the company are accelerating the submission of project regulatory approval applications. The company will maintain close contact with all parties involved, respond promptly, and provide timely communication and feedback to steadily advance the implementation of this project. 3. How do you view the future development prospects of the industry? Shenghe Resources responded: The company's current main products include rare earths, zirconium, and titanium. Rare earths are important strategic mineral resources. Rare earth elements possess rich magnetic, optical, and electrical properties, and can be used in materials such as permanent magnets, catalysts, hydrogen storage, polishing, precision ceramics, fluorescence, lasers, and optical fibers. They have very wide applications in fields such as new energy, new materials, energy conservation and environmental protection, aerospace, military industry, and electronic information. With the global energy transition and the development of downstream industries such as intelligent electric vehicles and energy conservation and environmental protection, the market prospects for the rare earth industry are broad. Zirconium has excellent physical and chemical properties and is mainly applied in consumer sectors such as zirconium silicate, zirconium chemicals, fused zirconium, precision casting, and refractory materials. The demand for zirconium products in the high-end manufacturing industry is gradually increasing, with the demand for markets such as metallic zirconium, composite zirconium, and nuclear-grade sponge zirconium rising year by year. Titanium is the metal element with the lowest density among refractory metals, possessing the two major advantages of high specific strength and strong corrosion resistance. It has a wide range of applications in fields such as aerospace, military industry, marine engineering, medicine, chemical pigments, metallurgy, and electric power. 4. What is the current capacity utilization rate of the company? Shenghe Resources responded: The capacity utilization rates of the company's rare earth smelting and separation, as well as metal processing, remain at a high level. 5. What is the company's current overall operating performance? Shenghe Resources responded: The company continues to strengthen market tracking and analysis, and scientifically formulates and implements business strategies. Since the beginning of this year, the company has demonstrated strong overall profitability, with a significant increase in gross profit margin compared to the same period last year. Taking the rare earth metal processing segment as an example, the company's production costs and material ratios are at the leading level in the industry, with indicators such as production volume, qualification rate, and labor efficiency all showing substantial improvements compared to the same period last year. Shenghe Resources disclosed its 2025 Q1 report on April 30, showing that in the first quarter of this year, the company achieved a total operating revenue of 2.992 billion yuan, up 3.66% YoY; and a net profit attributable to shareholders of 168 million yuan, turning from a loss YoY. Regarding the reasons for the increase in net profit, Shenghe Resources explained: Compared to the same period last year, the prices of major rare earth products have rebounded significantly this year, leading to an increase in sales gross profit, along with the reversal of some inventory impairment losses. Shenghe Resources' 2024 annual report shows that in 2024, the company achieved a total operating revenue of 11.371 billion yuan, down 36.39% YoY; and a net profit attributable to shareholders of 207 million yuan, down 37.73% YoY. The main reason for the substantial decline in net profit attributable to shareholders of publicly listed firms compared to last year is that in 2024, the market prices of major rare earth products declined significantly YoY, and the market prices of zirconium-titanium products were in the doldrums, resulting in a decrease in the average selling price and sales gross profit of the company's major products compared to the same period last year, leading to a decrease in the company's profit for this reporting period compared to the same period last year. Regarding the reasons for the change in operating revenue, Shenghe Resources stated that it was mainly due to the impact of market conditions in 2024, which led to a significant decline in the selling prices of rare earth and zirconium-titanium products compared to the previous year. Meanwhile, the scale of the company's trading business also decreased compared to the previous year. Regarding the company's business plan, Shenghe Resources stated in its 2024 annual report that in 2025, the company will strive to leverage the synergies among its various business segments, fully utilize its mineral resource advantages, tap into potential, continuously improve production and operation efficiency, and enhance the company's development quality. In 2025, the company plans to achieve a total operating revenue of 15 billion yuan for the whole year. The above targets are only the company's planned arrangements, which are significantly influenced by market supply and demand, and there is uncertainty about whether they can be completed as scheduled. In 2025, the company will orderly advance the Leshan 15,000 mt/year polishing powder project, overseas rare earth and zirconium-titanium resource projects, as well as other investment projects of the company. Through new construction, technological transformation, quality improvement, and efficiency enhancement, the company will continuously enhance its market competitiveness. Minsheng Securities issued a research report commenting on Shenghe Resources on May 21, pointing out that the company announced that its wholly-owned subsidiary, Ganzhou Chenguang Rare Earth New Materials Co., Ltd., intends to acquire 100% of the equity of Peak Rare Earths Limited. Peak is an Australian publicly listed firm headquartered in Perth, Western Australia, and listed on the Australian Securities Exchange (code: PEK). Its core asset is the Ngualla rare earth mine project in Tanzania (with an equity interest of 84%). Basic Information on Ngualla Rare Earth Mine: The Ngualla rare earth mine is located near Ngwala village in the Song region of Tanzania, approximately 1,000 kilometers west of Dar es Salaam (the former capital) and 150 kilometers from the city of Mbeya (near the Zambian border). It is one of the world's largest, highest-grade, and lowest-cost rare earth deposits. Mine Benefit Analysis: Upon completion of the acquisition, the company will hold 100% equity in Peak and an 84% stake in the core asset, the Ngualla rare earth mine project. The transaction is expected to be completed in early October 2025, with a total acquisition cost of AUD 158 million (RMB 743 million). According to Peak's FEED study, the total capital expenditure for the Ngualla mine is estimated at USD 287 million, including USD 182 million in direct capital expenditure and USD 105 million in indirect capital expenditure. The Ngualla project has a lifespan of 24 years, with an expected average annual REO production of 16,200 mt. The mine's annual operating cost is USD 64 million, and the total operating cost, including transportation expenses, is USD 76.7 million. Based on an annual REO production of 16,200 mt, the unit REO cost is USD 4,735/mt. Ngualla demonstrates excellent financial robustness, with all-in sustaining costs (AISC) maintained at a low level. According to the company's analysis, even as rare earth prices rise from USD 60/kg to USD 120/kg, the increase in Ngualla's costs remains insignificant. Therefore, the project can generate favorable profits even when rare earth prices are low. The company has formed a relatively complete industry chain, spanning from rare earth beneficiation, smelting and separation to deep processing, with abundant rare earth resource reserves. With the future commissioning of the company's existing projects and mines such as Ngualla, the company's rare earth production is expected to increase year by year. Coupled with the gradual stabilization and rebound of rare earth prices, the company's future performance is promising. Risk Warnings: Risks include the project acquisition and construction progress falling short of expectations, significant volatility in rare earth prices, and operational risks in overseas markets. It can be seen from Shenghe Resources' Q1 report this year and its 2024 annual report that changes in rare earth prices are closely related to the performance of rare earth enterprises. 》Click to view the SMM Rare Earth Industry Chain Database Taking the historical price trend of Pr-Nd oxide as an example: The price of Pr-Nd oxide generally increased in Q1 2025 compared to the end of 2024. Reviewing the price trend of SMM Pr-Nd oxide in Q1, it can be observed that the average price of Pr-Nd oxide on March 31 this year was RMB 444,500/mt, an increase of RMB 46,500/mt compared to the average price of RMB 398,000/mt on December 31, 2024, representing a Q1 increase of 11.68%. Comparing the daily average price of Pr-Nd oxide in Q1 2025 (RMB 429,605.26/mt) with that in Q1 2024 (RMB 381,646.55/mt), it can be seen that the daily average price in Q1 this year increased by 12.57% YoY. Reviewing the historical trend of the SMM average price of Pr-Nd oxide in 2024, we can see that the average price on December 31, 2024, was 398,000 yuan/mt. Compared to the average price of 442,500 yuan/mt on December 29, 2023, the average price in 2024 fell by 44,500 yuan/mt, representing a decline of 10.06%. The annual daily average price of Pr-Nd oxide in 2024 was 391,871.9 yuan/mt. Compared to the annual daily average price of 529,274.79 yuan/mt in 2023, the annual daily average price fell by 137,402.89 yuan/mt, a YoY decline of 25.96%. According to SMM quotes, the average price of SMM Pr-Nd oxide on May 26 was 435,000 yuan/mt, up 6,000 yuan/mt from the previous trading day, representing an increase of 1.4%. It is reported that recently, most rare earth mine suppliers are still reluctant to sell their inventory, with low enthusiasm for shipping goods, making it difficult for separation plants to purchase raw materials. Influenced by the recent procurement tenders from major producers with relatively high tender prices, the confidence of some suppliers in refusing to budge on prices has increased, leading to a tightening of low-priced supplies in the market, which in turn has supported the rise in rare earth prices. Currently, there is a strong wait-and-see sentiment in the market, with downstream buyers being cautious in purchasing. For the future market, it is necessary to continue to monitor the sustainability of tenders from major producers and whether there will be a significant increase in downstream demand.