Scandium
Overview
Scandium is a silvery-white, lightweight rare earth metal that was discovered in 1879. It's often classified as the lightest rare earth element, though some classifications place it separately. Scandium is used primarily in aluminum-scandium alloys for aerospace components and sports equipment due to its light weight and strength-enhancing properties.
Appearance
Silvery-white metallic
Electron Configuration
[Ar] 3d¹4s²
Density
2.985 g/cm³
Melting Point
1541°C
Discovery
Discovery Timeline
Primary Uses
- Aerospace components
- Sports equipment
- High-intensity lights
- Electronic devices
Application Sectors
Economic Value
Current Price
$3,600 per kg
Price Trend
Supply Risk
Primary Producers
Investing in Scandium
- Scandium oxide (99.9%) trades at US $1200-1400 /kg FOB China (≈ US $1.30 /g) as of May 2025.
- European spot prices reach US $1600-1800 /kg due to limited availability and aerospace certification costs.
- Asian Metal's index shows strong growth driven by aerospace alloy and solid oxide fuel cell demand.
- Small-lot investors face 40-50% premiums above bulk prices due to extremely limited supply.
- Metal prices carry 50-60% premium over oxide due to complex processing and purity requirements.
How to Get Exposure
| Route | Why It Appeals | Watch-outs |
|---|---|---|
| Physical metal/oxide | Direct exposure to aerospace and clean energy growth | Extremely limited supply, storage complexity |
| Mining stocks | Operational leverage to aerospace demand | Very limited pure-play options |
| ETFs | Broader rare earth exposure | Minimal Sc-specific exposure |
Market Outlook
- Aerospace aluminum-scandium alloys driving explosive demand growth in commercial aviation.
- Solid oxide fuel cell applications showing strong promise for clean energy transition.
- Sports equipment applications providing premium consumer market exposure.
- High-intensity lighting applications creating specialized industrial demand.
- New production coming online in Australia, Canada, and Madagascar.
- Supply extremely limited with few dedicated production sources globally.
- Recycling initiatives expanding but still under 5% of total supply.
- Strategic stockpiling by aerospace companies adding to demand pressures.
FAQs
Why invest in Scandium?
Scandium offers leveraged exposure to aerospace innovation and clean energy development, with aluminum-scandium alloys being critical for next-generation aircraft efficiency.
How volatile is the market?
Prices show steady upward trends due to long-term aerospace contracts, but can be volatile due to extremely thin trading volumes and limited supply sources.
What drives Scandium demand?
Aerospace alloy applications, solid oxide fuel cells, high-end sports equipment, and specialized lighting systems are the primary demand drivers.
What are the main investment risks?
Extremely limited supply sources, thin markets, potential substitution by other lightweight materials, and concentration in aerospace applications.
Is Scandium suitable for retail investors?
Only for sophisticated investors with high risk tolerance - consider it a speculative allocation due to market illiquidity and extreme supply constraints.
Disclaimer: Market data is indicative and updates frequently; nothing here constitutes financial advice.