Supply Chain

Tellurium Supply Chain: From Mine to Market

Tellurium is one of the rarest elements in the Earths crust, produced almost entirely as a byproduct of copper electrolytic refining. It is recovered from anode slimes at copper refineries, with China (~55%), Japan, and Europe as the main producers. Total global production is only ~500 tonnes/year, severely constrained by the volume of copper being electrolytically refined. First Solar is the dominant demand driver, consuming most tellurium dedicated to CdTe solar cell production. The fundamental supply constraint is that tellurium production cannot be increased independently of copper refining volumes. This creates a potential scaling limit for CdTe solar technology, though First Solar has invested heavily in tellurium recovery technology and recycling to extend the available supply.

Production Geography

Global Tellurium production is led by China, which accounts for approximately 55% of world output, followed by Japan. The full list of major producing nations includes China, Japan, Sweden, Russia, Canada. This geographic concentration means that disruptions in key producing regions can have outsized impacts on global supply and pricing.

Extraction Methods

Tellurium is extracted using the following primary methods:

• Byproduct of copper refining (anode slimes)

Processing and Intermediate Products

Tellurium is primarily sourced from Tellurium recovered from copper electrolytic refinery anode slimes. After extraction, the raw material undergoes multiple processing steps including beneficiation, chemical treatment, and refining to reach the purity levels required by downstream industries. Typical ore grades range from Byproduct - 10-80 ppm in copper anodes.

Key Supply Chain Participants

The Tellurium supply chain involves these major companies:

Supply Chain Vulnerabilities

Key vulnerabilities in the Tellurium supply chain include concentration of 55% of production in China, limited processing capacity diversification, and long lead times for new mining projects. The high supply risk rating reflects the severity of these concentration risks and the difficulty of rapidly establishing alternative supply sources.