Titanium dioxide: More Than Just a "Whitening Agent" for Paints, It Can Cover Multiple Fields

In the industrial sector, there is a white powder known as the "all-around player"—it can keep exterior wall paint looking new for ten years, add a pure hue to food packaging, and serve as the core protective component in sunscreen. This substance is titanium dioxide, hailed as the "King of White Pigments." Today, we will comprehensively dissect this niche field closely linked to industrial production and daily life, covering its characteristics, supply chain, and A-share targets.

1. Core Characteristics and Application Scenarios of Titanium Dioxide

Titanium dioxide is a white powdery solid, and its core characteristics support a wide range of applications, specifically including:

High coverage: 1 gram of titanium dioxide can cover an area of approximately 450 square centimeters, which is more than three times the covering ability of traditional white pigment lithopone, effectively achieving a whitening effect for materials.

High stability: It has properties of light resistance, weather resistance, and acid and alkali resistance. It does not easily discolor or age when exposed to outdoor environments for extended periods. A typical application is exterior wall paint, which can maintain a snow-white appearance for over ten years after use.

High safety: Recognized by the United Nations as a safe material, in addition to industrial use, it can be used as a food coloring and whitening agent in the production of foods such as flour and candy.

Photochemical activity: Under ultraviolet light exposure, it can undergo photocatalytic reactions and decompose organic pollutants. It can be applied in the fields of environmental protection coatings, air purification materials, and so on.

Based on the above characteristics, the application scenarios of titanium dioxide cover multiple fields:

Industrial sector: used in the production of ink, paper, chemical fiber, ceramics, and other manufacturing industries.

Consumer goods sector: applied in cosmetics (such as physical sunscreen ingredients in sunscreen) and plastic products (such as food packaging).

In the food industry: As a compliant white additive, it enhances the appearance and brightness of food.

2. Analysis of the Titanium Dioxide Industry Chain Structure

The titanium dioxide industry chain is divided into three major segments: "upstream raw materials—midstream production—downstream applications." The competitive landscape in each segment impacts the profit margins and development potential of enterprises.

1. Upstream: Titanium ore resources determine the cost basis.

The main raw material for titanium dioxide is titanium ore, which is divided into ilmenite and rutile.

Ilmenite: With a relatively low titanium content, it accounts for over 90% of global reserves and is the current mainstream production material.

Rutile ore: It has a high titanium content and is suitable for producing high-end titanium dioxide, but global reserves account for only 5%, making it a scarce resource.

The main global titanium ore production areas include Australia (Rio Tinto), Mozambique (Kenmare), and China (Sichuan, Yunnan). China has approximately 230 million tons of titanium ore reserves, ranking third globally, but mainly consists of low-grade ilmenite. Additionally, mining scale is limited due to environmental policies, requiring the import of some high-end titanium ores from countries such as Australia and Vietnam. Companies with their own titanium mines or those that have secured long-term titanium ore supplies have advantages in raw material cost control and resistance to market cycles, such as Pangang Group Vanadium & Titanium Co., Ltd.

2. Midstream: Production Process Leading Product Competitiveness

The main production processes of titanium dioxide are the sulfuric acid method and the chlorination method. These two processes differ significantly in terms of technology, cost, and environmental friendliness. Industry trends indicate that with the tightening of environmental requirements and the growth of high-end demand, leading domestic companies such as Longbai Group and CNNC Hua Yuan Titanium Dioxide Co., Ltd. have initiated the construction of chlorination method production capacity, promoting the industry's upgrade towards high-end development.

3. Downstream: Demand structure combines both traditional and emerging fields

Traditional demand for titanium dioxide is concentrated in three major fields, accounting for over 80% in total.

Coatings (45%): Applied to interior and exterior wall paints, automotive topcoats, industrial anti-corrosion paints, etc.;

Plastic (25%): Used for white goods casings (refrigerators, air conditioners), food packaging materials (plastic bottles, films).

Papermaking (10%): Used as a whitening agent for high-grade paper (Bible paper, decorative paper).

At the same time, the titanium dioxide industry chain is extending into the new energy field. Some companies are using by-products from titanium dioxide production (such as ferrous sulfate) to produce lithium iron phosphate, providing raw materials for power batteries and creating new demand growth points.

3. Overview of A-share Titanium Dioxide Related Enterprises

In the first half of 2025, the titanium dioxide industry faced multiple pressures: while the supply of titanium ore was plentiful, rising sulfuric acid prices drove up overall costs. Anti-dumping measures overseas hindered exports, and with demand under pressure, industry operating rates declined and inventories accumulated, leading to a "decline in both volume and price" trend. Against this backdrop, over 10 A-share listed titanium dioxide companies showed divergent performance, as detailed below:

Lomon Billions Group

Industry status: The world's largest titanium dioxide producer with an annual capacity of approximately 1.5 million tons, mastering both the sulfate process and the chloride process.

Core Advantages: Chlorination process capacity accounts for over 30% (leading domestically), independently developed "fluidized chlorination process" breaks foreign technology monopoly; owns Yunnan Xinli Titanium Mine and locks in long-term supply agreements, ensuring controllable raw material costs.

Business layout: Establish an industrial chain of "titanium mining and selection - titanium dioxide - new energy materials," with an annual production capacity of 100,000 tons of lithium iron phosphate, which is planned to be increased to 500,000 tons by 2025, in cooperation with CATL (Contemporary Amperex Technology Co., Limited).

2. CNNC Hua Yuan Titanium Dioxide Co., Ltd.

Industry position: The second largest titanium dioxide enterprise in China and the fifth largest globally, with an annual production capacity exceeding 400,000 tons, primarily using the sulfuric acid process.

Core Advantages: Approximately 70% of the production is rutile-type titanium dioxide, with stable product performance; long-term agreements with local mining companies in Gansu secure titanium ore, and the self-sufficiency rate of ferrous sulfate exceeds 90%, providing significant cost advantages.

Business layout: Build an industrial chain from titanium concentrate to lithium iron phosphate through "organic growth + external mergers and acquisitions" and expand into the new energy sector.

3. Vanadium Titanium Co., Ltd.

Core progress: In May 2025, the 60,000-ton molten salt titanium dioxide production line completed its technical challenges one month ahead of schedule, achieving a 100% first-grade product rate and breaking cost design targets.

Business Strategy: Adopt a "Vanadium Industry and Titanium Industry Synergy Development" model, focusing on high-end specialized titanium dioxide products to form differentiated competition.

4. Anada

Industry scale: The annual production capacity is approximately 120,000 tons, accounting for 5%-6% of the total national production capacity, ranking tenth in the world.

Products and Customers: Covering rutile and anatase titanium dioxide, primarily serving medium-sized paint factories and building material companies in Jiangsu, Zhejiang, and Anhui, with orders from architectural coating customers accounting for over 60%.

Business Direction: Promote the transformation towards lithium iron phosphate, leveraging shareholder resources to explore the synergistic development of titanium dioxide and new energy materials.

5. Jinpu Titanium Industry

Industry scale: In 2023, the production and sales volume is 205,000 tons, belonging to the second tier of the industry (annual production and sales volume of 200,000-500,000 tons), with a market share of approximately 3.7%.

Business Status: The company has experienced continuous losses in recent years, with an estimated loss of 160 million to 186 million yuan in the first half of 2025. It has announced a strategic exit from the titanium dioxide business and is transitioning to the rubber products industry.

6. Huiyun Titanium Industry

Core advantages: Relying on the "sulfur-titanium-iron-calcium" circular economy industrial chain, with pyrite as the core to form a complete chain of "pyrite-based acid production—titanium dioxide production", reducing transportation costs and resource consumption.

Resource Deployment: In 2024, acquire the exploration rights for vanadium-titanium magnetite in Qinghe County, Xinjiang, to strengthen the supply capacity of upstream titanium ore.

4. Summary of the Development of the Titanium Dioxide Industry

In the short term, the titanium dioxide industry is in the adjustment phase of "de-stocking and stabilizing costs," with the pace of demand recovery and the overseas trade environment being key influencing factors. In the long term, breakthroughs in domestic chlorination technology and environmental policies driving industry upgrades, combined with the expansion of demand in the new energy sector, will gradually shift the industry from "price competition" to "technology competition and industrial chain competition."