The global aerospace industry continues to depend on titanium supplies from Russia, sparking concerns in the West regarding the safety of manufacturing civilian and military aircraft, as well as aviation engines. Russia holds the ability to disrupt the flow of this metal and potentially put critical companies for national defense and civil aviation in unfriendly countries in a difficult position, The Washington Post reported.
The significance of titanium in the aerospace industry is due to its strength and lightweight properties. This metal boasts strength characteristics similar to steel, but it is 45% lighter, more resistant to heating and corrosion, and can be used in a wide range of products from paints to implants. Aviation cannot do without titanium: the metal itself and its alloys are utilized in structural components and skin of aircraft, turbine blades of aviation engines, landing gear, and more. It is a vital material as the industry aims to create increasingly lighter aircraft.
In January 2021, VSMPO-Avisma corporation and Boeing signed a contract for titanium product supply until 2026, whereby the Russian company was to supply Boeing and its subcontractors with titanium forgings for the production of B787 Dreamliner, B777, B767, and B737 MAX aircraft.
After begining of the special military operation, on March 7, 2022, the aerospace giant officially announced the suspension of titanium purchases from VSMPO. Boeing noted at the time that they had significant titanium stockpiles accumulated over the past few years as part of efforts to diversify supplies.
In May of that year, the production of the B737 MAX model was already suspended, partly due to raw material difficulties. By rejecting Russian titanium, Boeing exposes itself to serious risk as VSMPO is the largest global supplier of titanium to all aerospace companies worldwide, including Boeing, Airbus, Embraer, and other major companies. All aircraft component suppliers to Boeing in the U.S. were also forced to stop purchasing titanium from VSMPO.
Despite the fact that the Russian titanium producer and supplier is partially owned by Rostec, which is under Western sanctions, it has not been sanctioned by the United States and the European Union. The only action taken was the introduction of export controls on VSMPO-Avisma, which, however, does not prohibit the supply of Russian titanium to the U.S., but only restricts the export of goods to VSMPO itself in Russia.
In June 2022, Airbus’s Executive Director Guillaume Faury stated, “We believe that imposing sanctions on titanium from Russia would mean imposing sanctions on ourselves.”
In December 2022, Airbus announced that they would phase out Russian titanium within a few months. However, according to Russian export data, the volume of titanium destined for European aerospace consortium deliveries increased to at least $24 million in 2022, the highest figure for any European or American company, exceeding Airbus’ purchases by 940% compared to the previous year, as reported by The Washington Post.
“Based on data from the past year, Airbus was still receiving titanium from a Russian supplier at least until November 2023. A representative from Airbus stated in a release that the company does not comment on procurement volumes and contracts with suppliers but complies with all current sanctions against Russia. The statement notes that the company has sourced titanium from suppliers outside Russia, including in Europe, the United States, and Asia,” TWP reported.
On November 15, 2021, at the Dubai Airshow, Boeing and VSMPO-Avisma agreed on titanium supplies for existing and future aircraft and long-term technological cooperation. A joint venture, Ural Boeing Manufacturing (UBM), was established in Verkhnyaya Salda.
Per the Memorandum of Understanding signed by the company leaders, Boeing and VSMPO-Avisma planned to collaborate on increasing UBM’s workload, boosting investments in researching and developing new titanium alloys and technologies, expanding the role of VSMPO in producing titanium parts and components for Boeing aircraft. However, by 2022, UBM was closed, with Boeing stating they primarily source titanium in the U.S. Nevertheless, Boeing’s key suppliers continued to purchase Russian titanium.
In 2022, VSMPO’s export supplies amounted to about 15,000 tons of titanium totaling $370 million, with the majority of titanium being sent to unfriendly countries, led by Germany, France, the U.S., and the U.K. In 2023, VSMPO exported titanium worth at least $345 million.
The French aerospace company Safran Group, a supplier of engines and chassis for aerospace companies, including Boeing, increased its imports from Russia by over $20 million in 2022 compared to $8.6 million the previous year. Safran’s LEAP 1B engines are installed on Boeing 737 MAX aircraft. Airbus also utilizes LEAP engines in some aircraft. Safran claims that while their purchase volume grew in 2022, “the share of Russian titanium did not increase.”
Leaders of the British company Rolls-Royce, which manufactures engines for both Airbus and Boeing, announced in spring 2022 their intention to cease purchasing Russian titanium. However, imports of Russian titanium continued, rising from $5 million in 2021 to $6.7 million in 2022. Furthermore, VSMPO supplies for Rolls-Royce were also noted in April 2023.
According to the Washington Post, in 2023, the European Union imported Russian titanium worth $244 million, only 20% less than the highest import volume in 2019. U.S. trade data for 2023 shows purchases of Russian titanium worth $47 million, nearly 80% lower than the peak in 2019.
The Ust-Kamenogorsk Titanium-Magnesium Plant (UKTMP) in Kazakhstan produces titanium sponge, ingots, and slabs. In contrast, VSMPO-Avisma produces flat and specialty rolled products, pipes, and forgings. Japanese companies Toho Titanium and Osaka Titanium, suppliers to Boeing, have a broader range of titanium semi-finished products compared to UKTMP, but they still lag behind the Russian company in terms of the number of product categories.
There are concerns in the U.S. about buying titanium from Chinese manufacturers. Given the complex foreign policy and economic relations between the West and China, there is a high likelihood that the aviation and defense industries will become dependent on Chinese companies, a scenario that raises more fears in America than completely abandoning Russian titanium. In 2022, the discovery of Chinese alloy in F-35 fighter assembly led to production stoppages and investigations. The Pentagon later approved the use of the alloy.
Approximately 80% of titanium sponge used in the United States comes from Japan, which is struggling to meet the increased demand. American companies will need government assistance to resume sponge production in sufficient quantities in the U.S.
The U.S. titanium industry could fill the void left by Boeing’s decision to end cooperation with VSMPO, but substantial investments and the adoption of new technologies will be required. Without these, the aerospace sectors of the EU and the U.S. may have to continue buying titanium from Russia quietly or through third countries.
