With the addition of tellurium, TRADIUM now offers private buyers access to another strategic raw material. This exceptionally rare metal complements the physical asset portfolio alongside antimony and bismuth. As both the energy transition and ongoing digitalisation accelerate, tellurium is increasingly coming into focus as a critical technology metal.
While tellurium is not a bulk raw material, it plays a vital role in selected key technologies, against the backdrop of structurally limited supply.
A Specialised Raw Material with Broad Applications
Tellurium is primarily produced as a byproduct of copper mining. As a result, supply is largely inflexible: production cannot be scaled up quickly to meet rising demand, and additional volumes are not available in the short term. Refining capacity is also highly concentrated, with China accounting for more than three-quarters of global output, followed by Japan and Russia, at roughly seven per cent each.
Energy Transition as the Key Demand Driver
Tellurium plays an important role in the energy transition. In ultra-pure form, it is used to produce cadmium telluride (CdTe), a semiconductor material employed in thin-film photovoltaic systems. CdTe is widely regarded as the leading technology in this segment, making photovoltaics the most important application for tellurium.
According to the International Energy Agency, solar power is expected to become the world's largest source of renewable energy by 2029. While thin-film modules currently account for only about two to three per cent of the global photovoltaic market, demand is likely to benefit from this trend, particularly as the efficiency of CdTe modules has more than doubled over the past 15 years.
Beyond photovoltaics, tellurium is a key component of bismuth telluride (Bi₂Te₃), which is used in thermoelectric devices to convert waste heat into electricity and to enable targeted cooling. These applications are found, for example, in data centres and industrial processes. As an alloying element, tellurium improves the properties of materials such as steel, copper, and lead. Additional uses include catalysts for synthetic fibre production, pigments for glass and ceramics, and rubber vulcanisation.
Why Tellurium Is a Compelling Physical Asset
- Central role in photovoltaics, particularly in cadmium telluride (CdTe) modules
- Extremely limited physical availability
Tellurium is a classic “hidden champion”: understated in profile, yet technologically indispensable.
High Market Concentration and Export Restrictions
With an estimated annual global production of around 1,000 metric tonnes, the tellurium market is small and highly concentrated geographically. This structure, combined with its importance for future technologies, has led to the metal being increasingly viewed as strategically relevant. In such a market, political measures, export controls, or regulatory interventions can have a rapid and pronounced impact on availability and trade flows.
Tellurium is classified as a critical raw material for future technologies in several industrialised economies, including the United States and the European Union. The combination of constrained supply and structurally growing demand underscores its relevance for long-term physical asset strategies.
Tellurium Now Available as a Physical Asset at TRADIUM
Frank Meier, raw materials expert at TRADIUM, comments on the tellurium market environment:
“For many years, tellurium played only a minor role because it was needed in very few applications. It has gained strategic importance primarily through the expansion of renewable energy. The strong concentration of refining capacity in China, new export restrictions, and the rapid growth of photovoltaics are reshaping market conditions. Tellurium is highly sensitive to developments in energy and industrial policy. For buyers of physical assets, the metal can be an attractive diversification component, especially in the context of the energy transition and advancing digitalisation.”
By adding tellurium to its physical asset portfolio, TRADIUM expands its offering to include a metal whose relevance is driven primarily by its technological importance, particularly its role in the energy transition.
