Sojitz’s Niobium Business:
Ensuring Stable Supply of an Essential Additive in High-Strength Steel Manufacturing

Niobium is one of the critical metals and an essential additive in the manufacturing process for high-grade, high-strength steel. The majority of the world’s niobium is mined in Brazil, and Brazil-based niobium company CBMM is responsible for roughly 80% of the niobium produced and sold worldwide. Sojitz acts as the exclusive distributor for CBMM’s niobium products for the Japanese market, supplying to domestic steel manufacturers and other consumers. This feature provides an in-depth look at the evolution of Sojitz’s niobium business, which first began nearly 60 years ago with Sojitz’s predecessor company Nissho Iwai and continues with Sojitz’s efforts to develop the niobium industry today.

Sojitz is CBMM’s exclusive distributor for the Japanese market and supplies CBMM’s niobium products to consumers in Japan. Brazil is home to roughly 90% of the world’s niobium reserves and output, and the mined ore is processed domestically into ferroniobium and other products before being supplied primarily to steel manufacturers. More than 90% of the niobium sold is used as an additive in the steelmaking process, and the mineral has become indispensable in the creation of high-performance steel products such as automotive steel sheets, construction-grade steel, pipelines, and heat-resistant special alloys. Notably, niobium was even utilized in the steel used to build Tokyo Skytree.

CBMM is the world’s leading niobium producer. The company first began its niobium operations in 1961 at a mine in Araxá, Minas Gerais, Brazil. Today, CBMM continues to manage the extraction, refining, and sale of high-grade niobium products. The niobium reserves at Araxá are estimated to cover more than 200 years’ worth of supply in terms of today’s global demand, which will enable CBMM to provide a stable supply for many years to come. Sojitz’s predecessor company Nissho Iwai Corporation began the import and distribution of CBMM’s niobium to the Japan market in 1967, and Sojitz now handles over 90% of the total niobium brought into Japan as CBMM’s distributor for niobium products to Japanese steel manufacturers and other consumers. Sojitz also distributes CBMM’s niobium products to other countries in the Asia region, and the two companies are collaborating on efforts to expand their niobium business to other markets.

CBMM niobium refining plant in Araxá, Brazil

CBMM is committed to ensuring a stable supply of niobium to meet growing global demand. Based on this mission, the company has successfully continued to expand its annual production capacity to reach its current capacity of 150,000 tons of ferroniobium equivalent. In addition, CBMM is also seeking out potential new applications for niobium beyond the steelmaking industry by exploring new markets and advancing in technical cooperation projects.

Sojitz has developed a niobium import and sales business that is optimized to ensure a stable supply to Japanese steel manufacturers and other consumers. The niobium products are transported by ship from Brazil, and the cargo takes roughly two months to arrive in Japan. Any delays or disruptions during the voyage can hinder Sojitz’s ability to meet the needs of its customers. Sojitz therefore maintains inventory at multiple storage facilities in Yokohama, Nagoya, Kobe, and Kitakyushu in order to mitigate risk and guarantee just-in-time delivery of its niobium products.

Niobium ore supply is concentrated in just a few countries, and globally there are only two other major suppliers in addition to CBMM. In fact, about 80% of all niobium ore extracted worldwide comes from the mine CBMM operates in Araxá. Among CBMM’s keys strengths are the overwhelming volume of its niobium reserves and its high cost competitiveness due to favorable mining conditions. In addition, the ore extracted at the Araxá mine has an average niobium content of 2.3%— extremely high compared with competitor mines—and this attribute also adds to CBMM’s competitive edge in terms of product quality.

Sojitz ensures just-in-time delivery of niobium products to customers in Japan through its domestic inventory and also leverages its long-standing relationships with these clients to gather valuable insights into market trends and changes in demand. Demand in Japan can fluctuate based on the time of year, and different production plants may request specific packaging requirements. To optimize operations, Sojitz effectively manages its inventory based on demand forecasts and adapts product packaging and other details to meet customer requests. The company also shares its insights with CBMM into the Japanese market and customer preferences. Through this approach, Sojitz goes beyond a simple product sales role to provide a valuable function that benefits both CBMM and its customers in Japan.

Primary uses of niobium
(2024, research by Sojitz, all images are for illustrative purposes only)

In 2011, Sojitz acquired a 15% stake in CBMM as part of a Japan-Korea consortium that included Nippon Steel Corporation, JFE Steel Corporation, the Japan Organization for Metals and Energy Security (JOGMEC), Korean steel manufacturer POSCO Holdings Inc., and Korea’s National Pension Service. By taking on the role of shareholder in addition to distributor at CBMM, Sojitz further reinforced its framework for the stable supply of niobium products.

In recent years, the steelmaking industry in Japan has seen a decline in output, and domestic demand for niobium products is anticipated to gradually decrease. In response, Sojitz is proactively supporting CBMM’s efforts to uncover new uses for niobium, including technology development projects to explore new markets and develop novel applications. In order to expand the use of niobium products beyond steelmaking to fields such as electronic components and chemical products, Sojitz is working to accurately understand the needs of both CBMM and consumers as it supports the planning and execution of these exploratory projects. Specifically, Sojitz facilitates discussions between CBMM and R&D teams at client companies, aids in contract negotiations, and supports communication with client purchasing and R&D teams. At every stage, Sojitz works to ensure that each project results in a win-win for both CBMM and the consumer. Additionally, Sojitz continues to present CBMM’s technical proposals to R&D teams at potential client companies as well as to universities and research institutes in order to lay the groundwork for future development projects.

Today, there are a number of specific initiatives underway to create demand-pull technologies and products and expand the applications of niobium, including the development of niobium titanium (as a base material for superconducting magnets used in MRI machines and maglev train technology), optical-grade niobium oxide (for lenses used in surveillance and dashboard cameras), and other varieties of niobium oxide (for use lithium-ion batteries, electrical and electronic materials, and catalysts).

One such effort is a collaboration between Sojitz, Toshiba Corporation, and CBMM. The three companies have jointly developed a next-generation lithium-ion battery that utilizes Niobium Titanium Oxide (NTO) as the anode material and have begun conducting demonstration tests involving use of the batteries in an electric bus at CBMM’s Araxá mine. This test marks the world’s first operation*1 of an EV powered by a lithium-ion battery with NTO anodes and is providing invaluable data on the NTO battery’s characteristics and vehicle operations, which will be leveraged in future commercialization efforts. The project partners are currently preparing to launch the NTO anode battery product and begin global sales at the earliest stage possible.

In addition to the next-generation lithium-ion battery development with CBMM, Sojitz is also involved in R&D of other niobium applications, including superalloys for aircraft and pipes for liquid hydrogen transportation. Going forward, Sojitz aims to further contribute to the growth of the niobium industry through its stable supply framework and multifaceted approach to expanding applications of niobium products.


*1: As of June 20, 2024. Research by Toshiba Corporation, Sojitz, and CBMM