Gallium for U.S. Semiconductor Dominance

Home > Industry Analysis > Content

【Summary】China's restrictions on gallium exports have raised concerns about the US semiconductor industry. Gallium, a scarce metal used in LED lighting, solar cells, and semiconductor technologies, is primarily sourced from China. A study warns that failing to address vulnerabilities in the gallium supply chain could pose national security and economic challenges for the US. Diversifying aluminum supply and developing downstream refining capacity are crucial.

FutureCar Staff Aug 16, 2023 6:23 AM PT

Gallium for U.S. Semiconductor Dominance

A little-known metal called gallium has been in the news lately due to China's decision to impose export restrictions on it. This move is in response to US export bans on certain semiconductor technologies to China. The restrictions have been in effect since August 1, 2023, and have had a significant impact on the sourcing of gallium, as China is responsible for 98% of its refined production. A study by the Center for Strategic and International Studies warns that the vulnerabilities in the gallium supply chain could pose national security and economic challenges for the United States and its allies.

Gallium is a unique metal that has the property of melting at room temperature, making it a curiosity in chemistry exhibitions. It is not found independently in the earth's crust but is bound with other elements, similar to aluminum. Most of the gallium ore comes from bauxite mining, which is also 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 been significant, leading to three Japanese scientists receiving the Nobel Prize for Physics in 2014. Gallium nitride is now gaining popularity in rapid charging devices, which are crucial for the fourth industrial revolution. Navitas Semiconductor is developing a gallium nitride charging system that could significantly reduce the charging time for electric cars, potentially impacting consumer acceptance of electric vehicles.

China's dominance in the gallium supply chain is a concern, as most gallium is mined alongside bauxite. Diversifying the aluminum supply and developing downstream refining capacity are essential. Guinea, with the world's largest bauxite reserves, is heavily invested in by China, supplying 56% of China's bauxite imports. However, other countries like Australia and Brazil could provide a long-term source of bauxite for the United States.

Currently, only around 10% of the available gallium byproduct from bauxite aluminum mining is being extracted. However, demand for gallium can rise rapidly, as seen with other technology metals. It is crucial for analysts to develop scenarios for gallium availability, considering factors such as the energy cost of bauxite extraction from reliable sources and opportunities for gallium recycling. The Round Top rare earths deposit in Texas also holds significant gallium deposits that could meet demand for thousands of years.

Research on gallium compounds in chemical engineering programs worldwide should be prioritized, as its unique properties may have further valuable uses. Diversification of materials for technological usage is also important, but there may be limitations to alternatives. Ultimately, a world where critical materials like gallium are circulated with ecological efficiency in mind is desirable. However, given the current trust deficit between resource powers, having multiple supply options for strategic metals is the most sensible approach for the United States and its allies.