American Semiconductor Dominance

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【Summary】China's restrictions on gallium export pose a major challenge for the US, as 98% of refined gallium comes from China. Gallium is crucial for technologies like LED lighting, solar cells, and high-efficiency semiconductors. The US needs to diversify its aluminum supply and develop downstream refining capacity to address the vulnerability in the gallium supply chain. Guinea, with the world's largest bauxite reserves, could be a potential source.

FutureCar Staff Aug 16, 2023 9:28 AM PT

A little-known metal called gallium has been making headlines recently due to China's decision to restrict its export. This move is in response to US export bans on certain semiconductor technologies to China. These restrictions have been in place since August 1, 2023, and have had a significant impact on sourcing gallium, as 98% of refined gallium comes from China. The Center for Strategic and International Studies has warned that failing to address vulnerabilities in the gallium supply chain could have serious national security and economic consequences for the United States and its allies.

Gallium is a unique metal that melts at room temperature. It is often used as a curiosity in chemistry exhibitions. Similar to aluminum, gallium is not found independently in the earth's crust but is bound with other elements. Most gallium ore comes from mining bauxite, the primary ore for aluminum, as well as some zinc ore deposits. However, gallium is scarce compared to aluminum, with an estimated concentration of 16.9 ppm in the earth's crust.

Gallium compounds have various applications in technologies such as LED lighting, solar cells, and high-efficiency semiconductors. The use of gallium nitride, in particular, has led to significant advancements in green-tech, including rapid charging devices. Navitas Semiconductor, a company at the forefront of gallium nitride charging systems, is working on a system that could reduce the home charging time for electric cars by a third. This innovation could have a profound impact on consumer acceptance of electric vehicles.

With the majority of gallium being mined alongside bauxite, it is crucial to diversify aluminum supply while also developing refining capacity outside of China's dominance. Guinea, with the world's largest bauxite reserves, could potentially be a long-term source of bauxite for the United States, as it is less influenced by Chinese investment compared to other major producers like Australia and Brazil.

Currently, only around 10% of available gallium byproduct from bauxite aluminum mining is being extracted. However, as seen with other technology metals, demand can rise rapidly, necessitating the development of scenarios for gallium availability. This includes considering the high energy cost of bauxite extraction from reliable sources like Australia and Canada, as well as exploring opportunities for gallium recycling. The Round Top rare earths deposit in Texas also holds significant gallium deposits that could meet demand for centuries.

Research on gallium compounds in chemical engineering programs worldwide should be prioritized to uncover further valuable uses for this unique metal. Additionally, diversification of materials for technological applications is always worth pursuing, although there may be limitations to alternative options. Ultimately, it is important to move towards a system where critical materials like gallium are circulated with ecological efficiency in mind, rather than competitive expediency or the supremacy of any one country. However, given the current trust deficit between resource powers, having a range of supply options for strategic metals is the most sensible approach for the United States and its allies.