Rusal Launches Scandium Production Facility Amid Russia’s Push for Rare-Earth Metals

Russian aluminium producer Rusal announced plans to establish a 1.5-tonne-per-year production facility for scandium, a rare-earth metal, with the potential to expand capacity to 19 metric tonnes annually. The facility will be located at the Bogoslovsky Aluminium Plant near the Ural Mountains, with production set to begin this year. The company has invested 500 million roubles ($5.73 million) in the project.

The announcement follows a call from President Vladimir Putin for increased domestic production of rare-earth metals, while the U.S. continues to explore mineral resources through international agreements. Recently, the U.S. signed a deal with Ukraine to tap into its mineral reserves for use in industries ranging from defense to consumer electronics.

Scandium is commonly used as an alloying agent with aluminium, improving strength, reducing weight by 10-15%, and enhancing resistance to thermal shock. Rusal stated that its scandium alloys could be utilized in shipbuilding, aviation—both military and civilian—as well as in railway car production and 3D printing of high-tech prosthetics. The Soviet Union incorporated scandium into MIG fighter jets as early as the 1980s.

The company estimates that global scandium oxide production stands at only 20-25 metric tonnes per year. Rusal will extract scandium oxide from red mud, a by-product of alumina production, using proprietary technology. Other global producers, such as Rio Tinto, obtain scandium oxide from the titanium processing stream.

Russia, which possesses the world's fifth-largest rare-earth metal reserves, aims to secure up to 12% of the global market share in rare-earth metal production by 2030.