Mapping The Complex Tantalum Ecosystem

An understanding of the tantalum capacitor supply chain is important in establishing a clear picture of the sub-sets of the global components trade.??It is important for the reader to know that the supply chain begins in the ground as mined materials, is processed into engineered dielectric materials; molded into and anode and manufactured into a component, distributed vertically to customers into multiple end-use market segments stuffing printed circuit boards with parts and ultimately ends in the recycling bin??where tantalum anodes are recycled back into the supply chain for use in tantalum carbides and chemicals.??

Mining of Tantalum Ore Raw Materials:

The supply chain for tantalum capacitors begins in the ground.??Certain materials, such as tantalum, are critical to the production of capacitors (anode), resistors (thin film) and semiconductors (diffusion layer) and must be mined before they can be processed into a usable form.??Tantalum has unique properties and is considered a strategic material and there is always considerable competition for materials among industries and nations.??The entire component supply chain is sensitive to the costs of mined materials because they make up a substantial percentage of the variable costs to produce electronic components.??Tantalum is mined??from the Earth using both hard rock mining techniques and artisanal collections.??The majority of tantalum ore comes from Central Africa (DRC, Rwanda, Uganda), Brazil, Ethiopia and Australia.

Raw Materials Processing-

Mined tantalum materials must be processed into a level of purity and particle consistency to be further pressed and molded into anodes for electrolytic type capacitors.??Therefore, in all instances there is a chemical processing company that bridges the gap between the mine and materials source and the component manufacturer.??In some instances, certain cost competitive capacitor manufacturers have “vertically integrated” their materials processing capabilities in-house as a concerted strategy to increase profitability.??This has occurred in the tantalum supply chain to be competitive against its rival in high capacitance ceramic dielectric materials, which are predominantly manufactured captively by the capacitor manufacturers. The engineering of both ceramic and tantalum raw materials requires an expertise in nanotechnology, and the ability to create consistent ultra-small shapes and patterns upon which an electric charge can be established and delivered efficiently.??Since tantalum is a metal, its reduction requires advanced chemical procedures and its anode sintering requires unique furnaces.??But the end result in the finished component is the combination of high capacitance and medium range voltage in a robust molded chip package, in extremely small case sizes.??This product therefore is a cornerstone product in the quest for volumetric efficiency and portability in handsets, tablets, computers, cameras, ABS Cards, SRS Systems, inverters, converters and battery management.??

Capacitor Anode Manufacturing-

Capacitor anodes for the electrolytic ecosystem are complex structures requiring multiple disciplines of captive and merchant knowledge.??There is a concerted effort among vendors within spheres of mutual interest in ore, powder, wire and anode that work towards a commonwealth. The tantalum anode ecosystem thrives through the yoking of multiple disciplines together to consistently produce electronic components with a long history or known reliability and performance.??Moreover- all electrolytic capacitor production in units are a feat of engineering because of the number of small but complex individually machines pieces requiring micro-assembly.?

Component Distribution-

Once a tantalum capacitor is manufactured by a vendor, it must be distributed to the customer.??Sales are either direct to an OEM (Original Equipment Manufacturer, otherwise known as a “brand” company), or direct to an EMS (Electronic Manufacturing Services Company) or through an authorized distributor to serve the masses (TTI and Mouser for example).??For direct sales to an OEM or EMS customer, the volumes must be of such massive proportions as to justify a dedicated sales channel.??

In the Americas and Europe, distributors account for more than half of regional sales, however, in the Asia-Pacific region, more sales are direct to OEM and EMS customers.??

End-Market Consumption:

Capacitor dielectrics exist because of their known reliability and performance over time in complex circuitry.??Tantalum is no exception.??It’s performance in an anode is to create a capacitance value at a specific voltage rating, with a low equivalent series resistance; and in a package size that is not disruptive and out of proportion with the other parts around it.??Tantalum has been a keystone product line in portability electronics because of its capacitance + voltage combination- we therefore see tantalum capacitors consumed in these broad end-use segments-

·???????Telecommunications,?

·???????Computers and Peripherals,?

·???????Automotive,?

·???????Consumer Audio and Video,?????

·???????Industrial and?

·???????Specialty market segments.??

Products that Paumanok has studied over the past 35 years that “Lead The Field” in complexity and require the greatest commitment from component producers, and with an emphasis upon tantalum dielevctric designs inlcude-

·???????Cardio Implantable Defibrillator

·???????Space Craft Power Supply

·???????Smart Watch

·???????MRi Machine

·???????CT Machine

·???????Life Sciences DNA Tester

·???????Semiconductor Decoupling

·???????Downhole Pump Logging Tools

·???????Under The Hood- Engine Control Units

·???????Electric Rail and Traction

·???????DC Link Circuit For Alternative Energy

·???????Aircraft Skin Electronics

·???????Smartphone Power Amplifier

·???????EVX Propulsion (Charger, Inverter, Converter and Battery Management Electronics)

Recycling of Critical Materials (Urban Mining):

The final part of the supply chain for tantalum capacitor components is recycling.??Many products are recycled to reclaim their precious anode dielectric metals.??While tantalum is not as popular as palladium, ruthenium, platinum or gold it is still recycled back into the supply chain as “scrap” and consumed in other materials processes such as carbides and chemicals.

Urban mining should get a boost from recent supply chain disruptions.??This strategy involves recycling older electronic equipment for materials by magnetic separation of components.??Computers are particularly tantalum intensive and a tantalum stream from recycled electronics has contributed to the supply chain each year in a multi-year effort toward sustainability.

Tantalum Capacitor Market Outlook: 2023-2028

Tantalum capacitors have an excellent market outlook in automotive electronics.??The polymer tantalum and polymer aluminum style chip capacitors are consumed in traction inverters, power converters, OB Chargers and Battery Management Systems in electric transport.??Tantalum is also preferred in MedTech, Oil & Gas, Defense, Space and Laboratory Test and Measurement equipment, all end-markets expected to grow in market value, according to Paumanok IMR estimates over the next five years.

Resources:

Paumanok IMR Tantalum Digital Assets-

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