China may impose export ban on gallium and germanium products

On July 3, 2023, China announced its intention to implement export restrictions starting from August 1 on specific gallium and germanium products. These metals are commonly utilized in computer chips and various other goods, and the aim behind these measures is to safeguard national security interests.

Gallium is a valuable element in small quantities within bauxite and zinc ores. Gallium metal is also generated during the processing of bauxite for aluminium production. Approximately 80 per cent of gallium production occurs in China, as the CRMA (Comprehensive Resource Model Association) reported.

Gallium plays a crucial role in manufacturing gallium arsenide, which is extensively utilized in the electronics industry. The CRMA states that only a handful of companies, primarily in Japan, China, and Europe, can produce gallium arsenide with the necessary purity levels.

According to Chinese customs, China exported 94 tonnes of gallium in 2022, up 25 per cent from the previous year. However, according to USGS, the US imports of gallium metal and gallium arsenide (GaAs) wafers in 2022 were worth about $3 million and $200 million, respectively. High-purity refined gallium production last year was estimated at 290,000 kg, a 16 per cent rise from 250,000 kg in 2021. Little quantities of gallium - around 10 tonnes in 2021 - are produced by Japan, Russia and South Korea.

In previous years, Germany and Kazakhstan were notable producers of certain materials. However, due to the surge in prices during 2020 and 2021, Germany made an announcement to recommence primary production of gallium. Within North America, Canada's Teck Resources holds the position as the largest producer of germanium, extracting this valuable resource from its trail smelter located in British Columbia. Additionally, the US-based Indium Corporation is involved in germanium production, while Belgium's Umicore is known for manufacturing both germanium and gallium.

According to the European industry association Critical Raw Materials Alliance (CRMA), the majority of germanium, an uncommon mineral, is derived as a by-product of zinc manufacturing and from coal fly ash. China holds the distinction of producing approximately 60 per cent of the global germanium supply, while the remaining portion originates from countries such as Canada, Finland, Russia, and the United States.

Last year, China adhered to its customs by exporting approximately 43.7 tonnes of unwrought and wrought germanium. The consumption of germanium witnessed a notable increase of 10 per cent from the previous year, reaching a value of around $39 million, as the U.S. Geological Survey (USGS) reported.