Where are germanium and gallium strategically produced?

(Reuters) – China announced on Monday that it will impose export restrictions on certain gallium and germanium products starting from August 1st, in order to safeguard national security interests.

Let’s delve into some interesting details about gallium and germanium:

WHERE IS GERMANIUM FOUND?

Germanium ores are rare and most germanium is produced as a by-product of zinc production and from coal fly ash.

According to the European association Critical Raw Materials Alliance (CRMA), China accounts for approximately 60% of the world’s germanium production, while the remaining comes from Canada, Finland, Russia, and the United States.

Last year, China exported 43.7 metric tons of unwrought and wrought germanium, as reported by Chinese customs.

WHAT ABOUT GALLIUM?

Gallium is found in trace amounts in zinc ores and bauxite. It is produced during the processing of bauxite to make aluminium. Around 80% of gallium production takes place in China, according to the CRMA.

Gallium is primarily used in the production of gallium arsenide, which is essential for electronics. The CRMA states that only a few companies, one in Europe and the rest in Japan and China, can produce gallium at the required purity.

In 2022, China exported 94 metric tons of gallium, marking a 25% increase from the previous year, according to Chinese customs. The United States imported gallium metal and gallium arsenide (GaAs) wafers worth approximately $3 million and $200 million, respectively, in 2022, as reported by USGS.

WHO ELSE PRODUCES THESE METALS?

Japan, Russia, and South Korea produced small amounts of gallium, totaling around 10 metric tons in 2021, according to the United States Geological Survey. Germany and Kazakhstan have also produced gallium in the past. Germany recently announced plans to restart primary gallium production due to the surge in prices in 2020 and 2021.

In North America, Canada’s Teck Resources is the largest germanium producer, extracting the material from its Trail smelter in British Columbia. U.S.-based Indium Corporation also produces germanium, while Belgium’s Umicore manufactures both germanium and gallium.

WHAT ARE THEY USED FOR?

Both gallium and germanium are crucial for various industries. They are used in high-speed computer chips, defense applications, and the renewable energy sector.

Germanium plays a key role in fiber optic cables, high-speed computer chips, plastics, and infrared radiation. It is also utilized in military applications such as night-vision devices and satellite imagery sensors. Additionally, germanium is important for low-carbon technologies like solar cells.

Gallium arsenide semiconductor wafers, which can operate at higher frequencies and exhibit heat resistance, are an alternative to silicon wafers. They generate less noise, making them valuable in radars, radio communication devices, satellites, and LEDs.

HOW MUCH DO THEY COST?

As of Monday, the price of 99.99% pure gallium in China was assessed at 1,775 yuan ($245) per kg, the highest since May 16, according to Shanghai Metal Exchange data on Refinitiv Eikon. The price of germanium ingot in China was last seen at 9,150 yuan ($1,264) per kg.

IS THERE A PRECEDENT?

In 2010, China imposed export quotas on rare earths to Japan following a territorial dispute, causing rare earth prices to soar. This move prompted Japan to seek alternative sources of supply. China cited environmental concerns as the basis for the restrictions. Rare earth magnets, which rely on these materials, are used in wind turbines, electric vehicles, and defense applications.

China has previously hinted at the possibility of restricting rare earth exports, including in recent years.

Chetan Parikh, Aishwarya (Reuters)

For proof: This July 3 story has been corrected to fix gallium production by countries outside China to 10 metric tons, not 10,000 tons CORRECTED-FACTBOX-Where are strategic materials germanium and gallium produced? – Reuters News 04 Jul 2023 06:19:28 AM Corrects gallium production by count…

(This story has been corrected to fix gallium production by countries outside China to 10 metric tons, not 10,000 tons)

($1 = 7.2374 yuan)

(Reporting by Dominique Patton, Mai Nguyen and Melanie Burton and Beijing newsroom; Editing by Tom Hogue and Himani Sarkar)

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