State of the PM Industry in North America—2025
Michael Stucky, President, Metal Powder Industries Federation
The current year is a pivotal moment in the manufacturing sector, signaling transformative changes not only in the United States but across the globe. As the automotive industry evolves alongside a dynamic mix of political, economic, and geopolitical influences, the landscape is ripe with opportunities. These ongoing shifts promise to redefine production processes and market dynamics, especially within the powder metallurgy (PM) industry.
The Promise of Powder Metallurgy
The engineering community increasingly recognizes PM as an innovative manufacturing technique for creating high-quality, net-shape components. This includes established methods such as conventional press and sinter, metal additive manufacturing, and metal injection molding. As we navigate these exciting developments, adapting to the evolving needs of diverse sectors, including aerospace, automotive, defense, energy, medical, and consumer markets, become crucial.
Promoting technologies for applications like batteries, magnets, and water purification using metal powders presents an excellent opportunity for innovation. As sustainability becomes a key factor in purchasing trends, the PM industry can shine as a resource-efficient alternative to traditional metal-forming methods. The potential for metal powders to contribute to a sustainable future is vast, encompassing energy storage solutions, heat management, and conductive coatings.
Sustainability is not just a trend; it is a driving force reshaping the industry. The PM sector is uniquely positioned to support domestic manufacturing, reducing environmental impacts associated with shipping, while conserving materials and energy. By embracing sustainable practices and technologies, a manufacturing landscape that prioritizes both efficiency and environmental responsibility can be achieved.
Market Dynamics in the Automotive Sector
The automotive industry remains the largest market for PM parts, making it essential to explore how political trends influence this sector. It is also a large consumer of tungsten carbide cutting tools and wear parts. Reports indicate that North American vehicle sales are increasingly favoring hybrid models, reflecting a shift in consumer preferences. In 2024, U.S. new vehicle sales reached 15.9 million units—a 2.9% increase from the previous year—driven by improved inventory levels and attractive incentives.
Sales of traditional hybrids surged by nearly 37%, as companies like Toyota and Ford adapt to changing consumer demands. Toyota’s reliable models attract consistent demand, while Ford’s hybrid sales outpace its electric vehicle (EV) offerings. This recalibration suggests that automakers are strategically focusing on hybrid technologies, an area where PM can play a vital role in component production.
While the future of EV sales remains uncertain, with most strategists expecting EV to be the ultimate winner, after adjusting forecasts by 5–7 years, the PM industry is well-prepared to adapt to these shifts. The design and production of automotive components will evolve in response to changing market dynamics, providing numerous opportunities for PM innovations. It is worth noting that the production of EVs typically requires fewer cutting tools compared with traditional internal combustion engine (ICE) vehicles.
Over 70% of iron powder shipments in North America are destined for passenger vehicles, underscoring the automotive market's significance for the PM industry. Enhancing fuel efficiency through improved engine performance, weight reduction, and alternative power systems will be crucial for both internal combustion and hybrid vehicles. Lightweight metals like aluminum and titanium will see increased use, but ferrous alloys will continue to dominate due to their strength and cost-effectiveness.
Estimates suggest that the average North American passenger vehicle contains around 14.8 kg (32.7 lb) of PM components in 2024—reflecting a slight decline from previous years. While challenges arose in the first half of 2024, the industry remains resilient. A temporary decline in iron powder shipments can be viewed as a reminder of the opportunities awaiting those willing to innovate.
Seizing New Opportunities
The growing demand for alternative energy solutions is opening fresh markets for metal powders. Innovative applications like axial-flux motors, known for their efficiency, present exciting prospects for soft-magnetic-composite materials. The PM industry is also benefiting from the strategic reshoring of magnet production, creating valuable supply chain opportunities.
Demand for tungsten and tungsten carbide in mining, energy exploration, and generation grew by 2–4% in 2024. Although North American oil and gas rig counts decreased by 3.4%, crude oil production remained robust. Tungsten carbide is vital for applications involving extreme wear and corrosion, particularly in the maintenance of downhole components.
In the aerospace sector, the drive for enhanced fuel efficiency is pushing manufacturers to seek lighter materials and optimize structures. Technologies such as hot isostatic pressing and metal additive manufacturing are expanding possibilities for aerospace applications, ensuring that PM maintains its relevance in high-demand industries.
The medical and dental fields represent diverse markets ripe for PM innovations. As technologies like metal injection molding and additive manufacturing gain traction, the potential for new applications will continue to grow.
The defense sector's evolving demands for detection, protection, and energy solutions are paving the way for innovative PM technologies. The demand for tungsten and tungsten carbide powders is being significantly driven by the defense sector, both in the U.S. and globally. The ongoing geopolitical tensions, particularly due to the conflict between Russia and Ukraine, have led many European countries to ramp up their defense expenditures. They are investing heavily in advanced military equipment such as tanks, armored vehicles, jets, drones, and missile systems. This increased military spending has resulted in heightened demand for refractory metals, including tungsten and tungsten carbide, essential for manufacturing durable and high-performance components.
To meet the defense demands, North American tungsten producers are maximizing the use of secondary raw materials while also developing mines in strategic partner nations. New mines are expected to begin production in 2025 and 2026, bolstered by U.S. government funding for feasibility studies of local tungsten deposits. If successful, these projects could greatly enhance domestic production and security of supply. Additionally, the implementation of Section 301 tariffs on Chinese tungsten products in 2024 has spurred domestic production, with further increases anticipated in 2025.
The demand for molybdenum powder in North America surged by nearly 17% in 2024, reflecting its strong applications across aerospace, automotive, electronics, defense, and medical sectors. Molybdenum is primarily sourced as a by-product of copper refining, with a sizable portion derived from major copper mines.
However, 2024 also saw the closure of several major copper mines in Panama and reduced output in parts of South America. While China expanded its copper production, new regulations set to take effect in 2025 may slow down output, potentially leading to price volatility in the molybdenum market.
In the consumer market, sectors such as home appliances, lawn and garden equipment, and high-tech industries are actively seeking innovative solutions. The breadth of opportunities is vast, and the PM industry is well-situated to respond.
Navigating Challenges and Building a Bright Future
The development of lean-alloy materials is essential for future sustainability. Water-atomized iron powder is being explored as a precursor for lithium iron phosphate batteries, while soft-magnetic-composites are being tailored for battery applications. Continuous advancements in premix lubricants and binder-treated materials ensure a stable supply chain for manufacturers.
Equipment manufacturers are focusing on creating machines that support high-precision, near-net-shape parts, emphasizing automation and efficiency. The integration of intelligent control systems is driving productivity, enabling manufacturers to respond swiftly to market demands.
While challenges such as tariffs and supply chain localization persist, the outlook for the PM industry remains optimistic. Emerging applications in hybrid electric vehicles indicate a growing acceptance of these technologies. Companies are diversifying into new markets, with innovative applications like the press and sinter titanium watch bezel displaying the industry's creative potential.
Metal additive manufacturing, despite facing some challenges, continues to innovate. New materials are being developed to meet specific applications, and processes are being refined to enhance efficiency. The industry is actively working on standardized materials and testing methods to ensure quality and consistency.
Metal Powder Shipments
The total estimated 2024 North American metal powder shipments decreased by 4.7% to 325,457 mt (358,828 st).
Total iron & steel powder shipments decreased 6.0% to 273,121 mt (301,126 st). Estimates for nickel shipments decreased 6.8% to 3,719 mt (4,100 st); copper and copper base powder shipments decreased 27.3% to 8,614 mt (9,497 st); stainless steel powders, decreased 11% to 5,086 mt (5,607 st); and tungsten 13.7% 2,494 mt (2,750 st).
Estimated increased shipments for 2024 included aluminum by 22.6% to 26,303 mt (29,000 st); molybdenum by 17.1% to 895 mt (987 st); and tungsten carbide powder by 21.1% to 5,225 mt (5,761 st).
North American Metal Powder Shipments
|
|
2023
|
|
|
2024
|
|
Type
|
Short Tons
|
Metric Tons
|
Short Tons
|
Metric Tons
|
Iron & Steel
|
320,234
|
290,452
|
|
301,126
|
273,121
|
|
Stainless Steel
|
6,300
|
5,714
|
E
|
5,607
|
5,086
|
E
|
Copper & Copper Base/Tin*
|
13,056
|
11,842
|
E**
|
9,497
|
8,614
|
E***
|
Aluminum
|
23,650
|
21,451
|
E
|
29,000
|
26,303
|
E
|
Molybdenum
|
843
|
765
|
E
|
987
|
895
|
E
|
Tungsten
|
3,186
|
2,890
|
E
|
2,750
|
2,494
|
E
|
Tungsten Carbide
|
4,759
|
4,316
|
E
|
5,761
|
5,225
|
E
|
Nickel
|
4,400
|
3,991
|
E
|
4,100
|
3,719
|
E
|
|
|
|
|
|
|
|
(E) estimate
|
376,428
|
341,420
|
E
|
358,828
|
325,457
|
E
|
* PM parts only
** This estimate is based on 4.5% of the iron powder shipments for PM & Friction
*** This estimate is based on 3.5% of the iron powder shipments for PM & Friction
|
|
|
|
|
|
|
|
|
|
|
1 short ton = 0.907 metric ton
PM and friction-grade iron powder shipments declined 6.5% to 246,109 mt (271,344 st). Welding applications decreased by 1.8% to 13,745 mt (15,154 st). Cutting, scarfing, and lancing applications decreased by 13.9% to 706 mt (778 st). Miscellaneous uses were flat.
North American Iron Powder Shipments
|
|
2023
|
|
|
2024
|
|
Application
|
Short Tons
|
Metric Tons
|
Short Tons
|
Metric Tons
|
PM & Friction
|
290,140
|
263,157
|
|
271,344
|
246,109
|
Welding
|
15,424
|
13,990
|
|
15,154
|
13,745
|
Cutting
|
904
|
820
|
|
778
|
706
|
Misc.
|
13,766
|
12,486
|
|
13,850
|
12,562
|
|
|
|
|
|
|
|
320,234
|
290,452
|
|
301,126
|
273,121
|
MIM and AM powder producers continued to see a downturn in shipments in 2024 that began in 2023. Many producers suggest an overabundance of inventory from prior years over purchases and the reuse of print/build bed powders as having a direct impact on 2024 shipments. Feedstock producers, who are large powder consumers, also maintained significant inventories of raw powder to ensure consistent supply for customers. Adding to the unstable conditions were declining orders throughout the year.
Spherical stainless steels, low-alloy steels, and titanium are the primary MIM materials, but AM has opened the door to more components from aluminum, copper, titanium, tungsten, and an array of other metal powders and alloys. Combined North American metal powder shipments for MIM and AM is estimated to have decreased by 10% in 2024. Some industry insiders reported greater decreases in shipments, but all forecast increases during 2026.
The PM industry stands at the threshold of exciting transformations, ready to seize opportunities and create new pathways for growth. By embracing sustainability, leveraging technological advancements, and fostering collaboration, we can confidently navigate the evolving landscape. By uniting to advance metal powder technologies, we can unlock new applications and enhance our collective strength.
Investing in research and development will be crucial for fostering innovation. Engaging with the next generation of engineers and technicians is equally important; mentoring students and encouraging them to explore careers in PM will help secure a bright future for our industry.
Together, we have the potential to shape a more sustainable and innovative future in manufacturing, meeting the needs of our customers and the global community. Let’s answer the call for change and lead the way into a promising tomorrow.
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Editor’s note: Digital copy available. Contact Dora Schember at 609-452-7700 / dschember@mpif.org
About the Metal Powder Industries Federation
Metal Powder Industries Federation is the North American trade association formed by the powder metallurgy industry to advance the interests of the metal powder producing and consuming industries and provides a single point of reference for all MPIF member companies.
About APMI International
APMI International is a non-profit professional society which promotes the advancement of powder metallurgy and particulate materials as a science. Its purpose is to disseminate and exchange information about PM and particulate materials through publications, conferences, and other activities of the society.
About the Center for Powder Metallurgy Technology
The Center for Powder Metallurgy Technology merges the academic and corporate powder metallurgy worlds with a joint goal to promote PM industry progress. This progress depends on the business community and its drive for profit, and it also takes the educational community with its dedication to research and the pursuit of knowledge.
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