Tellurium Market

Tellurium Market Analysis

The Tellurium Market size is estimated at 663.08 tons in 2025, and is expected to reach 851.12 tons by 2030, at a CAGR of 5.12% during the forecast period (2025-2030).

The tellurium market felt the brunt of the COVID-19 pandemic, with repercussions on production, supply chains, demand, and overall growth. Lockdown measures led to significant delays in mining operations and transportation, intensifying challenges in the already scarce raw materials. Consequently, these disruptions slowed production and reduced the availability of tellurium.

• Increasing usage in consumer electronics, the growing market for solar energy, and the increasing market for memory chips might propel the market forward.
• Nonetheless, the limited availability of tellurium and its mildly toxic nature to the environment could impede the market.
• Ongoing research to utilize tellurium in the healthcare industry and the increasing application in optoelectronics are poised to unlock substantial opportunities for the market
• Asia-Pacific region dominates the market and is expected to witness the highest growth during the forecast period.

Tellurium Market Trends

Increasing Demand for Solar Cells to Drive Market Growth

• Tellurium plays a pivotal role in formulating solar cells, enabling advancements in efficiency, affordability, and scalability.
• CdTe solar panels, leveraging tellurium, outshine their silicon counterparts in efficiency, cost-effectiveness, and adaptability. These panels not only excel in high-temperature and low-light conditions but also boast a shorter energy payback time due to their reduced production energy demands.
• Trade association Solar Energy UK (SEUK)'s Clean Power Action Plan aims for a solar generation capacity of 45GW-47GW by 2030. In a counterpoint, Solar Energy UK analyzed NESO’s CP30, suggesting that a target of 60GW by 2030 could lead to significant electricity cost reductions.
• At the end of 2023, China's solar cell manufacturing capacity stood at 930 GW/year, bolstered by an addition of 424 GW/year, as highlighted by the IEA Photovoltaic Power Systems Programme. In the first half of 2024, China produced 310 GW of solar cells, marking a 38.1% uptick from the same timeframe in 2023.
• In 2023, China bolstered its solar PV capacity by 260 GW, nearly tripling its growth from the previous year, as reported by the IEA. Meanwhile, the European Union, responding to an energy crisis, ramped up its solar PV additions to 61 GW in 2023, marking a 45% surge from 2022. The REPowerEU Plan and The Green Deal Industrial Plan, with their newly proposed policies and targets, are poised to significantly boost solar PV investments in the years ahead.
• According to IEA, to align with the NZE Scenario and achieve an annual solar PV generation of about 9212 TWh by 2030, a consistent annual growth of roughly 28% from 2024 to 2030 is essential. Additionally, a continued decline in PV module prices throughout 2024 is anticipated to further propel global capacity growth.
• India's solar cell manufacturing market is set to expand 7-8 times by 2030, eyeing a target of 49-50 gigawatts (GW). This surge is spurred by the Ministry of New and Renewable Energy’s draft amendments, poised to incorporate solar photovoltaic (PV) cells into the Approved List of Models and Manufacturers (ALMM) by April 2026.
• As of FY2024, India boasts a 70GW installed capacity for solar modules and 7GW for solar cells. With an anticipated addition of 84GW in the next three years, the actual capacity might fall short of announcements due to extended lead times.
• Consequently, these factors are likely to influence the market during the forecast period, leading to a surge in demand for tellurium in the solar cell market.

The Asia-Pacific Region to Dominate the Market

• Asia-Pacific accounted for the major market share of tellurium and is expected to continue dominating the market during the forecast period.
• Tellurium is used in solar cells, semiconductors, consumer electronics, thermoelectric devices, metallurgy for alloys, rubber vulcanization, synthetic fiber catalysts, photoreceptors, blasting caps, and as a pigment for glass and ceramics, most of which have Asia-Pacific as their dominant markets.
• China, leveraging its vast mining operations, solidifies its position as the world's leading tellurium producer. This dominance ensures a steady supply of raw materials, greatly benefiting China's electronics, semiconductors, and solar cell sectors.
• A report from the Institute of Energy Economics and Financial Analysis (IEEFA) in 2024 highlighted that India's export value of PV modules surged over 23 times in just two years, from fiscal years 2022 to 2024.
• As per IBEF, India's solar energy capacity has surged 26-fold over the past nine years, reaching 73.32 GW by December 2023. In 2023 alone, India augmented its solar power capacity by 7.5 GW, and in January 2024, the addition was a notable 9008.47 MW. This anticipated growth is largely attributed to the Ministry of New and Renewable Energy's draft amendments.
• With the global shift towards electric vehicles (EVs), the semiconductor sector is pivoting towards eco-friendly equipment. This move is poised to amplify demand, signaling another phase of double-digit growth in 2025. Consequently, in Japan, JEITA anticipates a 3% rise in domestic output, forecasting it to hit JPY 11,646.3 billion (USD 77.36 billion) in 2025, up from JPY 11,298.4 billion (USD 76.47 billion) in 2024.
• Therefore, the demand for tellurium is estimated to increase at the fastest rate in the Asia-Pacific region over the forecast period.

Tellurium Industry Overview

The tellurium market is consolidated, and some of the key players are Aurubis AG, Central Drug House, Mitsubishi Materials Corporation, Sidhartha Metals, and Rio Tinto.

Tellurium Market Leaders

Tellurium Market News

• April 2023: At its Kennecott copper operations near Salt Lake City, Utah, Rio Tinto has found an innovative method to extract tellurium from the slime produced during copper smelting. This anode-slime waste, generated during the smelting process, is laden with valuable metals, including silver, gold, selenium, and tellurium. The company channels this extracted waste slime through a specialized tellurium circuit. This circuit employs copper chips, elevated temperatures, and agitation, resulting in the production of copper telluride as a byproduct. After processing the slimes, the resultant solution undergoes treatment to eliminate any lingering impurities, which are then discarded as tailings.
• May 2022: Rio Tinto has commenced tellurium production at its Kennecott copper operation in Utah, positioning itself as one of just two U.S. producers of this vital mineral, which is essential for advanced thin-film photovoltaic solar panels. A newly constructed USD 2.9 million circuit at the Kennecott refinery is set to yield approximately 20 tons of tellurium annually. Under a commercial agreement, the refined tellurium will be processed in North America by 5N Plus, a prominent global player in specialty semiconductors and performance materials, in collaboration with Rio Tinto.