The Critical Minerals at the Heart of Global Tech
China’s decision to ban exports of gallium and germanium to the US has sent shockwaves through industries reliant on computer chips, renewable energy, and military technologies. These minerals are indispensable for producing advanced semiconductors, night vision goggles, electric vehicles, and solar panels – areas of strategic importance to the US and EU.
With China controlling 98% of global gallium production and 91% of germanium, the ban underscores a glaring vulnerability in global supply chains. The move follows Washington’s recent efforts to curb semiconductor exports to China, escalating the ongoing tech trade war.
Why Gallium and Germanium Matter
Gallium and germanium are essential but scarce, existing in trace amounts as byproducts of refining zinc, coal, and bauxite.
- Gallium comes from processing bauxite (the primary source of aluminum). It has unique properties – melting just above room temperature – making it critical for semiconductors and LEDs.
- Germanium is sourced from zinc smelting and coal fly ash. It plays a pivotal role in fiber optics, infrared optics, and as a catalyst in plastic production.
According to a 2023 Reuters report, the US holds strategic reserves of germanium but lacks gallium stockpiles, leaving the country vulnerable to supply disruptions. The US Geological Survey (USGS) estimated a potential $3.4 billion loss to GDP if the ban persists.
“These minerals are the backbone of modern technology. Disruptions jeopardize everything from defense to consumer electronics,” notes Dr. Mark Hendersen, a supply chain expert at MIT.
The Geopolitical Chess Game
China’s decision comes in response to US export restrictions targeting advanced semiconductor technology. Washington’s crackdown aims to limit China’s access to chips used in artificial intelligence (AI) and hypersonic weapon systems.
“Gallium and germanium’s dual-use potential – both military and civilian – gives China significant leverage,” says Li Wei, an economist at Beijing University.
The US is particularly wary of China’s advancements in AI-powered warfare and next-gen missile systems, technologies that heavily rely on advanced semiconductors.
What Can the US Do?
1. Restart Domestic Mining
The Pentagon is already exploring options to revive US-based mining and processing of these minerals. Historically, the Apex mine in Utah was the only site producing gallium and germanium, but it shuttered in the 1980s.
“We’re sitting on resources that haven’t been tapped for decades. Now is the time to revisit them,” says John Marshall, a former Department of Defense official.
US zinc deposits contain up to 50 parts per million of gallium, but no commercial recovery is in place. Investing in these domestic reserves could reduce dependence on China.
2. Diversify Supply Chains
Partnering with allied nations like Canada, Australia, and South Korea to develop new sources of gallium and germanium is crucial. Canada’s Teck Resources already extracts germanium from its Trail smelter in British Columbia, offering a model for scaling production.
“Friendshoring critical minerals is no longer an option – it’s a necessity,” notes Hendersen.
3. Recycling and Secondary Sources
Recycling electronic waste is a potential avenue for extracting trace amounts of gallium and germanium. However, recovery yields are low – only 10% of gallium and 30% of germanium come from recycled materials.
The challenge lies in separating these trace minerals from complex components. “The technology exists, but scaling it for cost efficiency is the hurdle,” says Sarah Dean, head of materials science at Stanford.
The Road Ahead
China’s export ban is a clarion call for the US to rethink its approach to critical minerals. While secondary supply through recycling holds long-term promise, immediate action hinges on reactivating domestic mining and fostering global partnerships.
“Resilient supply chains are the linchpin of national security. The longer the US waits, the greater the risk to its technological edge,” concludes Marshall.
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Sources: US Geological Survey, Reuters, MIT, Stanford University, Teck Resources
