1. Extraction: Titanium Ores Are Harder to Source and Refine
Iron for stainless steel: Iron is primarily mined from high-concentration ores like hematite (Fe₂O₃) or magnetite (Fe₃O₄). These ores are relatively easy to process: they are crushed, roasted to remove impurities, and then reduced to metallic iron in a blast furnace using coke (a cheap carbon source)-a mature, low-cost process that has been optimized for over a century.
Titanium ore processing: Titanium ores have low titanium content (ilmenite typically contains only 30–45% TiO₂) and are often mixed with other minerals (e.g., iron oxides, silica). To isolate titanium, ores first undergo beneficiation (physical separation via magnetic or gravitational methods) to increase TiO₂ concentration. This step alone adds cost, as it requires specialized equipment and energy.
2. Production: Titanium Requires Energy-Intensive, Specialized Processes
Chlorination: Beneficiated titanium ore (TiO₂) is reacted with chlorine gas (Cl₂) and carbon at 900–1,000°C to produce titanium tetrachloride (TiCl₄)-a toxic, corrosive liquid that requires careful handling and purification (to remove impurities like iron chloride).
Reduction: TiCl₄ is then reduced to metallic titanium using molten magnesium (Mg) or sodium (Na) in a sealed, high-temperature reactor (700–800°C). This reaction produces a porous "sponge" of titanium, which must be further processed to remove residual Mg/Na and chlorine.
Consolidation: The titanium sponge is crushed, pressed into large blocks ("ingots"), and melted in a vacuum arc furnace (VAR) or electron beam furnace to eliminate voids and ensure uniformity. This step is critical for structural applications but adds significant energy and equipment costs.
Iron (from blast furnaces) is melted with chromium (to add corrosion resistance), nickel (for ductility, in austenitic grades like 304/316), and small amounts of other alloys (e.g., molybdenum) in an electric arc furnace (EAF) or basic oxygen furnace (BOF). The molten steel is then cast into slabs, rolled into sheets, or formed into shapes-all using mature, high-volume equipment that minimizes per-unit costs.
3. Material Properties: Titanium's "Premium" Attributes Justify Higher Costs
4. Market Dynamics: Low Volume = No Economies of Scale
No large-scale cost reductions from standardized production.
Higher prices for specialized equipment (e.g., vacuum arc furnaces) and raw materials (e.g., magnesium for the Kroll process).
Limited competition among producers (a handful of companies dominate global titanium supply, e.g., VSMPO-Avisma in Russia, TIMET in the U.S.), reducing price pressure.