Supply shortages of raw materials drive up tantalum capacitor prices 2

According to industry perspectives, the price increase appears more credible. A new regulation is impacting tantalum supply, requiring producers to declare that their products do not contain "conflict minerals," which are mined in the Democratic Republic of the Congo. The Congo is one of the world's largest tantalum suppliers, but political instability in the region has led to a shift toward conflict-free supply sources, making tantalum scarcer and driving up prices.diode

"Due to raw material costs, prices have been rising," Feldberg stated. "However, our experts believe we can navigate this supply-demand situation by expanding (component) channels and avoiding overreaction."diode

Knight et al. viewed the price increase from the following perspective: The price of tantalum capacitors has only recently begun to reach pre-1999-2000 bubble levels. After a decade-long decline, it has now fully recovered. However, a rise of over 60% appears exceptionally shocking to buyers accustomed to lower prices.diode

In fact, tantalum's unique properties make it an ideal base for certain passive components in power supplies, with a wide range of applications spanning nearly every aspect of daily life. Its primary uses are the production of capacitors and high-power resistors, and it can also be added to various metals to enhance their strength and corrosion resistance. Additionally, some applications are critically important, such as in aircraft engines, and it is also used in dental equipment, surgical instruments, and implants due to its immunity to immune rejection issues.diode