High Purity Alumina Market Is Witnessing Strong Growth Due to Booming Electronics and Automotive Industries

 

High Purity Alumina (HPA) is a high-purity form of aluminium oxide. It is a high-value, high margin, and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire or artificial sapphire. HPA is extensively used in developing substrates for semiconductor wafers, LED lights, optical windows and smartphones, and scratch resistant glass. Moreover, HPA has potential uses in smartphone and television screens, electric vehicle batteries, and other high-technology products. Thus, there is an increasing demand for high purity alumina in various end-use industries, such as electronics and automotive. This in turn is expected to drive the High Purity Alumina Market growth.

This large share is mainly attributed to the increasing demand of HPA in LEDs for various applications, such as televisions, home lighting, and hybrid and electric vehicles. Thus, with the increasing demand for aforementioned products, the demand for high purity alumina is also increasing with a rapid pace. For example, in October 2019, QUT researchers partnered with Lava Blue and the Innovative Manufacturing CRC (IMCRC) to set up a pilot plant to transform kaolin clay into HPA which is used to make LEDs and Lithium ion batteries. Moreover, in September 2020, FYI Resources signed a memorandum of understanding (MoU) with Alcoa for the potential strategic development of FYI’s high purity alumina (HPA) project.

This in turn is also expected to accelerate the growth of the High Purity Alumina Market. There is an increasing demand for LEDs in the market, as they are energy-efficient and consume 80% less power than incandescent lamps. Moreover, governments around the world are supporting long-distance, zero-emissions vehicles through subsidies & tax exemptions, which have forced manufacturers to make electric vehicles available around the world. This has led to a growing demand for electric vehicles in the market. As a result, there is an increasing demand for high purity alumina in the market, driving the high purity alumina market growth.

The High Purity Alumina Market, in North America and the Asia pacific, is witnessing robust growth due to the increasing demand for consumer electronics, increasing demand for hybrid and electric vehicles, and the rapid growth of the automotive industry in these regions. In May 2021, Scandium International Mining Corp. filed a final patent application with the US Patent Office, pertaining to the manufacture of high purity alumina products. Moreover, According to the India Brand Equity Foundation, in 2020, India was the fifth-largest auto market, with ~3.49 million units combined sold in the passenger and commercial vehicles categories.