The metal Iridium has an unusually high density and is remarkably resilient to corrosion. It is also very high-priced, and typically only used in applications where a very small amount of it is sufficient. Iridium is the second-densest of all the known elements (22.4 x 103 kg/m3); only the metal osmium is denser (22.6 x 103 kg/m3).
Iridium has several industrial applications and is vital for the tech industry and aircraft industry. In recent years, the price has surged due to increased demand for iridium in tech products. Iridium is extremely resilient to corrosion and has a very high melting point.
A few things to keep in mind
- As far as we known, iridium is one of the rarest metals in the Earth’s crust.
- Iridium is not found pure in the Earth´s crust; only as an alloy with other metals. Iridium ores have been found in South Africa, the United States, Burma/Myanmar, Brazil, Russia, and Australia.
- The main producer of mined iridium is South Africa.
- Iridium is typically extracted as a biproduct from mines where the primary focus is something else, such as platinum mines. (Platinum ores can be comparatively rich in iridium.) A lot of iridum that enters the market is a byproduct from copper or nickel extractions.
- Increased global demand for tech products have resulted in an increased demand for iridium, and this trend is expected to continue.
Investing in iridium
For most investors, buying, storing and selling physical iridium is not feasable. Investors who want exposure to the iridium price will therefore normally buy shares in companies in the iridium industry. Here are a few examples:
- Anglo American (LON:AAL) owns Anglo American Platinum Limited (JSE: AMS), which is the world’s largest primary producer of platinum, accounting for about 38% of the world’s annual supply. It also produces iridium.
- Lonmin Plc (LON:LMI). Lonmin produces iridium, but is chiefly known for its production of platinum. This is the world’s third largest primary platinum producer and it has mines in South Africa’s Bushveld Complex.
- Norilsk Nickel (OTC: NILSY), which produces iridium ingots and iridium powder
Why is there a demand for iridium?
Iridium is extremely resilient to corrosion and heat, and has a very high melting point. This makes the metal sought after for certain highly specialized industrial applications, where the special characteristics of iridium justify the high price.
Here are a few examples:
- The tips of high-grade special spark plugs used in aircraft. (Iridium is eight times stronger than platinum, which is another precious metal frequently used in high-grade spark plugs. Both have a much longer expected lifetime than ordinary sparkplugs made from copper, and the iridium plugs are expected to last 25% longer than the platinum ones.)
- The manufacturing of LED screens and backlit displays for devices such as smartphones and tablets. (After the launch of iPad in 2010, the iridium spot price rose to over 1,000 USD per troy ounce. Ten years later, it was at 2,500 USD / troy ounce.)
- Crucibles used to melt and manipulate other elements and compounds with a high melting point. Iridium crucibles are for instance used to manufacture sapphire crystals, as this process require a temperature above 2000 degrees C. (Iridium does not melt below 2446 degrees C.)
- Iridium and osmium is combined to produce fountain pen nibs, pivot bearings and certain specialized scientific equipment.