Hafnium, a rare metal critical for AI chip manufacturing and aerospace engineering, has surged to near-record highs in European markets, according to industry analysts. Prices have risen sharply following China’s tighter export controls, which have disrupted supply chains and intensified competition among Western manufacturers.
Traders report spot prices climbing above $5,000 per kilogram, nearly double 2023 averages, as semiconductor firms scramble to secure materials for next-generation processors. Hafnium’s unique heat resistance makes it indispensable in chip substrates, jet engines, and nuclear reactors – all sectors experiencing strong post-pandemic demand.
Analysts say the AI boom has accelerated the imbalance, with data center growth and semiconductor scaling creating sustained demand pressure. Europe’s reliance on imports from China has exposed vulnerabilities, prompting renewed calls for domestic refining capacity and strategic stockpiling to safeguard the continent’s technology supply chain.
