Global demand for tantalum has increased strongly since the mid-1990s, exhibiting annual growth of 24% to reach a peak of more than 2,600 tonnes Ta2O5 in 2001, according to a report by London-based Roskill Information Services.
The Economics of Tantalum (eighth edition) points out that the increase is a result of the use of tantalum capacitors in small portable electronic components, such as laptops, video cameras, games consoles and mobile phones.
However, although production of tantalum capacitors increased to 24 billion units in 2000 from roughly 5 billion in 1988, last year saw a 15% decline to 20.5 billion. The drop is attributed to a slowdown in the electronics industry, in particular the mobile communications sector. Demand for tantalum in this sector has declined to 1,300 tonnes. In 2000, mobile phone manufacturers were predicting that handset sales would rise from 413 million units that year to 650 million in 2001. The actual sales figure for last year was 375-390 million.
Demand for tantalum capacitors is expected to recover, reaching 23 million units in 2002. Demand growth in this sector should average 9-10% per year through to 2005, to reach 1,800 tonnes, according to the report.
Emerging markets for tantalum capacitors will help ensure growth, the most important being engine management systems in automobiles, ABS controllers, and air bags.
Other new markets include tantalum oxides in computer memory chips and processors, and tantalum carbides in circuit boards.
The rise in the value of tantalite in 2000 spurred exploration and development in various countries.
At least half of all tantalum is produced by Sons of Gwalia in Western Australia. The company plans to increase output to 1,130 tonnes per year by 2003 and to 2,250 tonnes by 2006.
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