Securing Nearly One Billion CNY in Funding, SCSW Aims for 10,000-Ton Annual Titanium Alloy Powder Capacity

Panda3dp.com guide:Driven by the adoption of 3D printing and injection molding technologies in the production of titanium alloy components by leading global consumer electronics brands, the 3C electronics sector is witnessing an explosive demand for 3D printing, spurring exponential growth in the metal powder market.

On December 25, 2024, Panda3dp.com reported that Ningbo SCSW（尚材三维） had successfully completed nearly one billion CNY in Series A and A+ funding, leveraging its advanced titanium alloy production technologies. The company plans to invest billions more to achieve an annual production capacity of 10,000 tons of titanium alloy powder, aiming to become a leader in the field. Series A funding was exclusively provided by the Yanfa Fund, while Series A+ was co-led by Fosun Capital and Yunze Capital, with additional contributions from Ningbo Angel Fund. The funds will primarily support the construction of new production facilities and the expansion of its R&D team, accelerating the company's growth.

Founded in 2018, SCSW specializes in titanium alloy powders, boasting technological prowess and product quality that meet international standards. The company has achieved an annual growth rate exceeding 100% in market share and production capacity. Its products encompass a wide range, including TC4, TA15, TA1, TA2, TC11, Ti2AlNb, and 4N5Ti, with varied particle sizes suitable for applications in additive manufacturing, powder metallurgy, injection molding, hot isostatic pressing, laser repair, and thermal spraying. These powders serve diverse industries, including aerospace, medical devices, consumer electronics, semiconductors, automotive, and sports equipment.

The core team, with expertise dating back to 2014, has been a key driver of titanium alloy powder technology development, accumulating extensive knowledge in materials, processes, and equipment. Utilizing EIGA (Electrode Induction Melting Gas Atomization) technology as its core, the company has vertically integrated the titanium material supply chain, covering material R&D, smelting techniques, and HDH (Hydrogenation-Dehydrogenation) powdering processes. It has established a dedicated R&D center and multiple production bases to achieve its goal of leading the titanium alloy powder industry in China and globally.

SCSW boasts a top-tier R&D and process team, holding independent intellectual property rights over its production processes and core equipment. Its proprietary multi-stage controllable melting and atomization system significantly enhances production efficiency, while its powder surface refinement technology optimizes product quality. With advanced material development capabilities, the company offers customized products and services across various industries, overcoming reliance on external equipment manufacturers for technological solutions. This self-reliant approach ensures a seamless loop of equipment optimization and process upgrades, creating a substantial technological barrier and reducing future capacity expansion costs.

In 2024, SCSW's 2,000-ton production facility in Panzhihua, Sichuan, commenced operations. Spanning 12,000 square meters, the base has surpassed 1,000 tons in capacity. The company is leveraging Panzhihua's abundant titanium and hydroelectric resources to enhance its technical capabilities and competitiveness. Additionally, it actively participates in the local vanadium-titanium industrial chain, fostering upstream and downstream collaboration to deliver high-quality titanium powder products to its partners. Through technological innovation and service upgrades, the company aims to drive the high-quality development of the powder material industry, contributing to industrial advancement and economic growth.

Market Overview  

Titanium, known for its abundance and exceptional properties, continues to experience robust demand growth. As a strategic material of the 21st century, titanium alloy stands out for its low density, high strength, corrosion resistance, and non-magnetic properties, making it the material of choice in industries prioritizing high-strength and lightweight solutions, including defense, aerospace, medical, and automotive sectors.

China leads the world in titanium ore reserves, producing approximately 7.25 million tons of titanium ore in 2023, a 10% year-on-year increase. Global sponge titanium production reached 444,000 tons in the same year, with China contributing 215,400 tons, representing 48% of global capacity and marking a 21.72% growth. Meanwhile, China processed about 170,000 tons of titanium materials, reflecting a 12.5% increase, with a total output value of approximately 135 billion CNY.

Traditional titanium alloy processing techniques face challenges, including machining difficulty, material wastage, and high costs, limiting broader applications. The advent of 3D printing offers an innovative solution, addressing these pain points with advantages such as design flexibility, complex structural formation, high material utilization, superior mechanical properties, efficient production, and reduced costs. Consequently, 3D printing is becoming a transformative trend in the titanium industry.

In recent years, demand for spherical titanium alloy powders has risen steadily, with current applications exceeding 1,000 tons and expanding annually by 50%. Over the next decade, the market is projected to exceed 15 billion CNY, requiring nearly 20,000 tons of powder. Widely used in aerospace applications, titanium alloy powders are also gaining traction in consumer electronics, particularly in products like smartphones, wearables, and robotics, thanks to their unique balance of hardness and lightweight properties.

Titanium alloy powder injection molding is ideal for mass-producing small, complex components, reducing production costs by 30% and boosting efficiency by over 50%. With rising market awareness and technological advancements, spherical powder demand is expected to surge significantly in the next 2-3 years.

Over the past decade, the spherical titanium alloy powder market has experienced consistent growth, supported by widespread industrial applications. The Chinese market is poised for exponential growth in the coming years, likely becoming the world's largest market for spherical titanium alloy powders.

As 3D printing evolves, titanium alloy powder applications continue to expand, driving rapid market growth. The additive manufacturing sector is transitioning from its infancy to maturity, demonstrating sustained growth. Revenue from additive manufacturing is forecasted to reach $29.8 billion by 2025, with a compound annual growth rate (CAGR) of 18.24% from 2021 to 2025. By 2030, revenue is expected to climb to $85.3 billion, with a CAGR of 23.41% between 2025 and 2030.

Sources: Huashu High-Tech IPO Prospectus

Applications Across Industries  

In aerospace, additive manufacturing has already found its footing, offering expansive opportunities in military aviation and aftermarket services. Titanium alloy powders are widely used in this sector, including engine components, turbine blades, airframes, and propellers, accounting for over 50% of usage.

In medical devices, the global market has doubled between 2001 and 2021, with orthopedics being a significant segment. Titanium alloy powders, valued for their exceptional properties, are ideal for implants. 3D printing facilitates customized manufacturing, reducing costs and driving the adoption of titanium implants.

In consumer electronics, the market is set for explosive growth. Companies like Apple and Huawei have already adopted titanium alloys, paving the way for industry-wide applications. The material's role in smartphones, wearable devices, and humanoid robots is expected to expand, with demand exceeding 10,000 tons, rivaling aerospace as a key market. Additionally, titanium alloys find applications in luxury cars and sports vehicles, with significant potential in lightweight and safe designs for electric vehicles.