Niobium
Niobium Oxide (Nb₂O₅)
Niobium oxide (Nb₂O₅) is a strategic material essential in aerospace, defense, batteries, and electronics.
In 2024, the global market reached 13,379 tons and is forecast to more than double to 29,267 tons by 2035, growing at a 7.4% CAGR.
Niobium pentoxide dominates demand, holding a 97% market share due to its use in superalloys, optics, and ceramics. The metallurgy sector alone consumes 52%, driven by the manufacture of jet engines, spacecraft, and military technologies.
In optics, niobium enhances high-refractive index lenses for surveillance, autonomous vehicles, and medical imaging, while superconducting magnets built with niobium power MRI machines worldwide.
Meanwhile, the battery sector is emerging as the fastest growth area, with commercialization expected from 2026, enabling safer, faster-charging EV batteries and grid storage solutions.
On the price outlook, the niobium oxide market shows strong upward momentum. By 2035, high-purity Nb₂O₅ is forecast to reach USD 90–100 per kg, reflecting premium demand in batteries, optics, and semiconductors. Standard-grade Nb₂O₅ is projected in the USD 45–60 per kg range, supported by alloy and metallurgy applications.
Supply remains concentrated, with Brazil controlling over 65% of production and China relying heavily on African ore, creating sensitivity to geopolitics, logistics, and substitution risks.
Regionally, Asia-Pacific leads demand (39%), followed by North America (32%) and Europe (27%), driven by aerospace, defense, and clean energy industries.
Superalloys will remain the anchor driver of consumption, while batteries and advanced electronics deliver exponential growth from the late 2020s onward. By 2035, global consumption is set to more than double, firmly underpinning pricing.
At full scale, Globe’s Kanyika Project in Malawi will produce 3,000 tons of high-purity Nb₂O₅ per year, positioning it as one of the very few non-Brazilian producers able to deliver strategic supply into global markets. This makes Globe’s production globally significant for securing critical mineral supply chains.
Offtake & Marketing Strategy
Overview
Securing offtake partners early is a critical milestone for any mining project, particularly in the critical minerals sector, where downstream buyers are increasingly concerned about supply security, ESG standards, and diversification away from single-source producers.
For the Kanyika Niobium Project, Globe has already achieved strong traction with the signing of three non-binding offtake agreements:
- Affilips N.V. (Europe)
- Neo Performance Materials (Global advanced materials producer)
- Myst Trading (Asia-based trader with global distribution channels)
Together, these LOIs cover:
- ~82% of Phase 1 niobium production
- 100% of tantalum production
This is a significant commercial achievement prior to Final Investment Decision (FID). It provides a foundation for project financing discussions with IDC, Ecobank, and other strategic investors, by demonstrating that buyers are already committed to Kanyika’s product stream.
Offtake Partner Profiles
Affilips N.V. – European Alloy Specialist
- About the Company: Founded in Belgium in 1937, Affilips is a global leader in master alloys, with manufacturing plants in Belgium and the Netherlands. Together with its sister company KBM Affilips, the group produces ~50,000 tonnes of master alloys annually, exporting to more than 80 countries.
- Industries Served: Their alloys are used in high-strength steels, aerospace superalloys, nuclear applications, catalysts, and advanced industrial products.
- Agreement Terms:
- Up to 100 tpa of niobium oxide (~32% of Phase 1 output).
- 3-year initial term commencing May 2026, renewable.
- Binding agreement expected before September 2025.
- Waste material stored in engineered dumps with progressive rehabilitation.
- Strategic Fit:
- Validates Kanyika’s ability to meet stringent alloy-grade requirements.
- Provides direct access to Europe, a region strategically intent on reducing reliance on Brazil’s CBMM for niobium.
- Anchors Kanyika’s entry into Europe, the second largest market for niobium globally.
Together, these LOIs cover:
- ~82% of Phase 1 niobium production
- 100% of tantalum production
This is a significant commercial achievement prior to Final Investment Decision (FID). It provides a foundation for project financing discussions with IDC, Ecobank, and other strategic investors, by demonstrating that buyers are already committed to Kanyika’s product stream.
Neo Performance Materials – Global Advanced Materials Producer
- About the Company: Neo is a Canadian-listed company (TSX: NEO) with operations spanning North America, Europe, and Asia. It operates across three divisions: Magnequench (magnetic powders), Chemicals & Oxides, and Rare Metals. Its products are integral to clean energy, EVs, aerospace, electronics, and medical devices.
- Operations: Neo operates key metallurgical facilities including NPM Silmet in Estonia, one of the largest rare metals refineries in Europe.
- Agreement Terms:
- Up to 150 tpa of niobium oxide (~50% of Phase 1 output).
- Right of first refusal on tantalum and zircon by-products.
- Rolling annual renewal after initial delivery.
- Strategic Fit:
- Provides exposure to vertically integrated supply chains serving Tier-1 OEMs in Europe, North America, and Asia.
- Neo has strong ESG credentials and a focus on traceable supply, matching Globe’s conflict-free, rules-based marketing position.
- Opens opportunities for downstream collaboration beyond simple offtake (e.g. alloy making, battery material development).
Myst Trading – Specialist Trader in Metals & Concentrates
- About the Company: Established in Singapore in 2017, Myst Trading has rapidly built a reputation as a niche commodity merchant focusing on battery metals, concentrates, and rare metal products. Myst provides offtake, tolling, financing, and structured pricing solutions, and is particularly strong in tantalum distribution.
- Agreement Terms:
- 100% of tantalum oxide (~14 tpa) from Phase 1.
- Right of first refusal on ~76 tpa of niobium oxide (~25% of Phase 1).
- 3-year term commencing with production.
- Strategic Fit:
- Provides guaranteed coverage for the tantalum by-product, which represents ~15% of project revenues.
- Enhances liquidity and optionality in Asian markets
- Adds financial flexibility by enabling pre-shipment and structured trade finance options.
Strategic Value of Globe’s Offtake Base
- Market Validation: These counterparties, spanning industrial alloys, advanced materials, and global trading, confirm that Kanyika’s products meet international standards.
- Geographic Diversification: Customers are spread across Europe, North America, and Asia, reducing reliance on a single market.
- Financing Leverage: LOIs support Globe’s discussions with IDC (USD 10M convertible) and Ecobank (USD 15M loan) by showing revenue certainty.
- Optionality: Myst provides flexibility for excess volumes, tantalum monetisation, and trade finance structuring
- Alignment with ESG: Neo and Affilips demand traceable supply, while Globe’s CDA and MDA commitments reinforce ESG credibility.
Globe’s Marketing Strategy
Globe’s approach to marketing Kanyika’s products is built around four pillars:
- Premium Products – Focus on high-purity niobium and tantalum oxides, avoiding commoditised ferroniobium-only markets.
- Diversified Customers – Engage both industrial end-users (Affilips, Neo) and traders (Myst) for resilience and flexibility.
- ESG Advantage – Promote Kanyika as a conflict-free, transparent, rules-based source aligned with global critical mineral policies.
- Financing Alignment – Leverage offtake to secure project finance, pre-payment facilities, and strategic equity.
Strategic Value of Globe’s Offtake Base
- Convert LOIs into binding agreements prior to FID.
- Maintain balance between strategic anchor customers (Neo, Affilips) and trading flexibility (Myst).
- Explore downstream opportunities with Neo and Affilips, including potential alloying partnerships or co-development of battery materials.
- Integrate offtake agreements with IDC and Ecobank financing to finalise a balanced capital package.
Strategic Value of Globe’s Offtake Base
Globe’s early success in securing three strong offtake partners covering the vast majority of Phase 1 output demonstrates commercial readiness and market appetite for Kanyika’s products. These agreements are a cornerstone of Globe’s financing and development strategy, underpinning project bankability and positioning Globe as Africa’s first high-purity niobium producer.