Tradium GmbH is an international intermediary and supplier of minor metals, rare earths and precious metals critical to the technology and manufacturing sectors. While the company has traditionally focused on raw material trading as well as private customers, it is now also seeking new solutions in light of current developments and the global shortage of raw materials, exploring the raw material loop beyond traditional end-of-life concepts.
How has the industry changed throughout your career in commodities?
I started my career with Degussa, a big international German company with pharmaceutical, chemical and metal products. After my apprenticeship, I became a metal trader responsible for supplying industrial facilities worldwide. Forty years ago, demand for a raw material like indium was only a fraction of today’s demand.
Every product in the modern world now needs rare earths, precious metals or technology metals. Nobody expected that we would have smartphones that we can operate with just by our fingers and glass. Such technology was not even available in James Bond films; today, almost everybody has it in hand for hours every day.
Nobody expected such rapid development with regard to these products. When large, shareholder-driven companies moved away from metal trading because they did not like the risks and low margins, Tradium was able to grow and develop quickly. Today, we are well known in this niche market and supply many industries, giving us a clear picture of real demand. Without the restrictions from China, prices would reflect regular market parameters like production capacity and demand. Instead, prices for some products have increased 10 to 20 times, and we need to be patient to see what happens.
What disruptions are you facing in the raw materials market today, and did you see them coming?
China's restrictions are not completely new. We saw similar export restrictions around 2010 through 2012, when prices skyrocketed before returning to normal after about 18 months. This time, however, I did not expect the restrictions to last this long or expand step by step to additional products and applications. The bigger problem is that many end users do not maintain strategic inventories because high stock levels negatively affect their financial key figures.
Are any particular materials generating a buzz among your customers?
Scandium is an example of a raw material receiving market attention, but it is a very difficult material to obtain because production capacity is extremely limited. Scandium remains a very small part of the rare earth market, with 80 tons of scandium produced every year. As a byproduct, the output of scandium is closely tied to the production of nickel and titanium process streams and cannot be scaled up that easily. Scandium is an outlier in the Rare Earth Elements sphere. Unlike the lanthanides, scandium is a Group 3 element and only counts as an REE by convention. The material is becoming increasingly important in electronics where precise specifications are critical, but is still relatively new in those applications. One of scandium’s most important applications is in solid oxide fuel cell (SOFC) technology, where it enables highly efficient electrochemical power generation. Scandium is also used in high-performance and light-weight alloys for the aerospace industry.
How are you sourcing commodities for customers during this challenging period?
We are working closely with our industrial customers and suppliers to secure material wherever possible. Although many of our Chinese partners remain willing to supply us, export restrictions continue to limit what can actually be shipped. I often say that water running downhill always finds its way, but at the moment there simply isn't enough water available. I hope governments find a diplomatic solution because everyone benefits from the restoration of normal trade. Until then, industrial buyers should secure the volumes they need whenever material becomes available. Across the market, supply remains limited, regardless of what customers are willing to pay.
What role do private stockpiles and recycling play in securing supplies?
Private stockpiles can contribute to supply resilience by increasing the amount of material available within the market over the long term. Regulatory developments in April 2026 have changed the framework for this business. However, private customers continue to purchase strategic metals from Tradium's distribution partners as a physical asset. Today, these materials are stored with a third party high-security warehouse provider in Switzerland rather than in Germany.
We are also investing into refining processes throughout the value chain. Previously, this would not have been my favorite solution because of the fixed costs and additional risks, and I preferred to remain a trader. But, we have had to change our opinion. I like production and find it super interesting, and it could help us and help the industry.
What are your priorities for the future, and does AI factor into your business?
AI may support our business in some areas, but I do not believe it will replace what we do. The technology can help people find information, but our business still depends on analyzing, storing, shipping and supplying materials. What AI will do is increase demand for these materials because of new electronic and computing applications that require these raw materials.
All of us are facing super fast development wherever you look. A computer that is cutting-edge today will be old in four weeks. This rapid pace will certainly need more raw materials to continue, keeping our business special and interesting. Sometimes, I would appreciate it if the field would be more boring, at least for a few weeks. But I do not expect this to happen. So, we are always optimistic. We are very busy. We love what we are doing. We will be there in the future.
