Investing in the Fluorite Industry: Why Is It a Profitable Business Move?

Highlights:

• An introduction to fluorite
• Rising applicability in metallurgy and nuclear power generation
• Growing preference for fluorite in electronics manufacturing
• The final word

Fluorite is a halide mineral form of calcium fluoride, with the chemical formula CaF2. Commercially called fluorspar, it is the principal source of fluorine and is naturally found in octahedral or cubic crystals. Fluorite is a highly reactive mineral, making it an ideal raw material for different compounds, chemicals, and materials.

Increasing utility of fluorite in metallurgy and nuclear power generation

The chemical manufacturing and metallurgy industries are the main consumers of fluorite. The mineral serves as a key raw material in hydrofluoric acid production processes. Over the years, the growing pace of industrialization and urbanization has led to a surge in the utility of metals like aluminum. Hydrofluoric acid, an essential component of the aluminum smelting process, has thus witnessed a huge growth in demand from different end-use sectors. The acid and its mineral salts are primarily used in metal extraction processes, separating the element from its impure oxides. Moreover, the application of fluorite and its derivatives like sodium aluminum fluoride in electrolysis and for refining purposes has increased significantly in the past few years.

Apart from this, nuclear power plants have become one of the biggest customers of fluorite manufacturing businesses in recent times. The primary fuel used in these power plants is uranium which occurs naturally in the form of two isotopes- U-235 and U-238. The energy is released through the fission process in which these two isotopes need to be separated. Studies in particle physics and chemistry have shown that fluorine extracted from fluorite helps in the purification of uranium. Over the years, as the demand for renewable energy has increased, governments in developed and developing countries have started investing heavily in nuclear projects as a clean source of electricity. As a result, the demand for fluorite minerals is predicted to increase drastically in the next few years.

The consumer electronics sector emerging as a major fluorite consumer

Along with this, the consumer electronics sector, too, has seen a growth in demand for fluorite mineral and its byproducts. For instance, hydrofluoric acid manufactured from chemically reactive fluorspar is now widely used in the extraction of rare earth metals like tantalum and niobium, two key elements in smart electronic devices such as tablets, laptops, and mobile phones. Moreover, many materials and chemical companies are increasing the production of fluorite to address the manufacturing needs of optical glass manufacturers. The advent of advanced technologies such as AR and VR has broadened the scope of these high-grade lenses. Advanced optical systems developed from fluorite compounds have become quite popular due to their superior imaging and light transmission abilities.

The fluorite sector, which accounted for $3.6 billion in 2023, is anticipated to gather a revenue of $5.9 billion by 2033, rising at a CAGR of 5.3% during 2024-2033. Multinational giants such as ARES Strategic Mining Inc., China Zhong Qi Holdings Limited, Gujarat Mineral Development Corporation Ltd., etc., have taken solid steps to expand their presence globally. These companies have gradually become major suppliers of fluorite minerals to different electronics and semiconductor manufacturing giants. At the same time, many leading electronics companies have launched innovative products that make use of fluorspar and its byproducts, thus creating new investment opportunities in the fluorite industry.

For instance, in September 2022, Vivo, a communications equipment company, announced the launch of V25 and V25 Pro smartphones. Featuring a 64MP OIS ultra-sensing camera, the device is equipped with Hybrid Image Stabilization (OIS+EIS) technology. Moreover, the rear panel is covered with fluorite AG Glass that changes its hue when exposed to UV light. Within a short span of two years, these two gadgets have become quite popular models in the smartphone segment.

In March 2023, Fujifilm, a multinational conglomerate, unveiled its FUJINON HZK25-1000mm, broadcast zoom lens. With the world’s longest focal length and highest 40 x zoom, the fluorite element-based lens is specifically developed for liver coverage of sports events and music concerts. The company, for marketing purposes and ad campaigns, has nicked this product, “Duvo Box”.

Winding up

In summary, fluorite and its derivatives have become an essential component for several end-use sectors in the global economy. Fluorspar's use in the production of hydrofluoric acid has made it a prerequisite raw material in metallurgy industries like aluminum smelting. Similarly, its utility in nuclear power plants and consumer electronics has led to a huge surge in investments by leading mining and chemical manufacturing companies.

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