Tellurium is a rare, silvery-white metalloid primarily obtained as a byproduct of copper refining. This element combines exceptional optoelectronic properties with high chemical stability. In specialized alloys, thin-film solar cells, and semiconductor technology, tellurium fulfills key functions that underpin its strategic importance in modern high-tech and energy transition markets, thereby triggering increasing global demand.
Source: Stockdio*
After the tellurium price had risen sharply in 2022 and 2023, the market equilibrium only temporarily eased in 2024. Analysts point to continued robust demand from the photovoltaic industry, which is building additional capacity due to growing demand for cadmium telluride modules. In parallel, OEMs from the automotive and data center sectors are bringing forward their long-term supply contracts to preempt potential bottlenecks. Supply, however, remains in the hands of a few copper smelters who currently see little incentive to maximize their byproduct yield. The situation is exacerbated by stricter export regimes in China and Russia. In the short term, continued price firmness is therefore expected, while in the medium term, new refining projects in South America and Canada could provide relief.
Tellurium possesses unique physical and chemical properties that are irreplaceable in several key industries. It improves alloys, enables highly efficient thin-film solar cells, optimizes memory chips, and serves as a catalyst in electrochemical processes. This versatile profile makes tellurium a strategic raw material for the energy transition, digital infrastructure, and innovative material developments, both in research and industrial series production worldwide.
Cadmium telluride solar cells are among the most efficient thin-film technologies. In combination with cadmium, tellurium forms a light-absorbing semiconductor layer that enables high efficiencies at low manufacturing costs. The resulting modules are insensitive to high temperatures and shading, which makes them attractive for large utility-scale projects and further significantly reduces the Levelized Cost of Energy.
Bismuth and tellurium alloys have a high Seebeck coefficient and are used in thermoelectric modules that convert temperature differences directly into electrical energy. These compact generators are used in space probes, industrial waste heat recovery systems, and autonomous sensors, where reliability and maintenance-free operation are crucial, and are also suitable for portable cooling units in medical technology.
In semiconductor manufacturing, high-purity tellurium is used to dope gallium arsenide and silicon wafers to precisely adjust conductivity and band structures. Furthermore, it is used in infrared detectors, optical data storage, and laser diodes, where its ability to form complex chalcogenide compounds is performance-determining and thus contributes decisively to the efficiency of future high-speed communication systems and will support quantum light sources in the future.
Small tellurium additions improve the machinability of steel and copper alloys by controlling shear zones during machining and optimizing chip formation. At the same time, tellurium increases corrosion and wear resistance and lowers the coefficient of friction, which extends the lifespan of high-performance components in engines and chemical plants and significantly reduces maintenance costs, especially in demanding high-temperature environments worldwide.
Tellurium-containing nanostructures are being researched as cathode materials in lithium-sulfur and sodium-ion batteries, as they offer high volumetric capacities. In electrocatalysis, tellurium improves selectivity in CO2 reduction and hydrogen evolution reactions, which further strengthens its role in future renewable energy storage systems and thus contributes to the decarbonization of industrial processes and grid stabilization, significantly on a global scale.
Tellurium possesses unique physical and chemical properties that are irreplaceable in several key industries. It improves alloys, enables highly efficient thin-film solar cells, optimizes memory chips, and serves as a catalyst in electrochemical processes. This versatile profile makes tellurium a strategic raw material for the energy transition, digital infrastructure, and innovative material developments, both in research and industrial series production worldwide.
The global tellurium supply amounts to barely more than a few hundred tons per year and is almost exclusively produced as a co-product of copper, gold, and lead smelters. China dominates primary refining and, according to the USGS, regularly accounts for more than a third of global production. Other important sources are located in Russia, Peru, Japan, Canada, and the United States, where anode slimes from copper electrolysis are primarily processed. Since the metal yield is only a few kilograms of tellurium per thousand tons of processed copper concentrate, a short-term increase in supply is associated with significant investments in refining technology. Recycling has so far contributed only modestly to the supply but could grow with increasing volumes of end-of-life modules.
Demand for tellurium correlates strongly with the expansion of renewable energies and semiconductor production. The demand from the photovoltaic industry is growing particularly dynamically, where cadmium telluride modules are gaining market share due to improved efficiencies and short energy payback times. In addition, there are applications in thermoelectric generators, optoelectronic components, and novel battery and catalysis systems, which are still in the early stages of industrialization. The largest import markets are countries with significant electronics, automotive, and solar module manufacturing. Long-term supply contracts and strategic stockpiling are increasing as end-customers seek greater supply security with limited expansion options on the supply side. In parallel, the EU is redefining critical raw materials, which is likely to trigger additional regulatory demand impulses in the coming years.
Private investors can primarily benefit indirectly from tellurium, as there is no liquid spot or futures market. The most common access is through shares in mining and refining companies that produce tellurium together with copper or precious metals. Mixed funds with a focus on technology metals also offer exposure to a diversified portfolio of rare elements and do not require physical storage.
The opportunities of a tellurium positioning include the high-growth application areas in solar energy, thermoelectrics, and semiconductors. These are offset by risks: a highly concentrated supply, regulatory interventions in export countries, and possible substitution progress with alternative materials. Investors should therefore carefully consider diversification, liquidity, and currency risks and pay attention to transparent extraction practices along the global value chain.
Tellurium is rare, geographically concentrated, and obtained exclusively as a byproduct. This means that supply cannot be rapidly expanded when new demand segments emerge. At the same time, the metal is indispensable for key technologies such as cadmium telluride solar cells and thermoelectric generators, which is why the risk of supply bottlenecks is high and requires clear diversification strategies for consumers worldwide today.
Tellurium is predominantly found in anode slimes that accumulate during the electrolytic refining of copper. These slimes are roasted, leached, and electrolytically treated in special plants to isolate tellurium dioxide. Subsequently, it is reduced to metallic tellurium or converted into high-purity tellurium tetrachloride for semiconductor applications before being shipped in ingots, powder, or granules.
Yes, especially from end-of-life cadmium telluride solar modules, alloy scrap, and electronic waste. However, recycling requires complex chemical separation, as the tellurium content is low and strongly bound. Advances in hydrometallurgical processes promise higher recovery rates and could ease the supply situation in the long term, especially if global capacities for module recycling are further expanded and standardized in the future.
In photovoltaics, copper-indium-gallium-selenide and perovskite technologies are discussed as alternatives, while in alloys, sulfur or selenium can take over partial functions. However, substitutes usually achieve lower efficiencies or reduce machinability, so tellurium remains the preferred choice in many high-performance applications, especially in thermoelectrics, high-performance sensors, and quantum optical systems, where it is currently still irreplaceable.
There is no official reference price. Trading volumes are negotiated directly between producers, processors, and traders, often based on supply indices from specialized price agencies. Factors such as copper cathode output, refinery margins, spot demand from the solar industry, and export restrictions are included in daily quotations, which means price reports appear with a delay of several days, and transparency for investors remains limited today.
Source: Stockdio*
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