Sourcing Gallium: Boosting American Semiconductor Dominance

author: FutureCar Staff    

A little-known metal called gallium has been in the spotlight recently due to China's decision to impose export restrictions on it. This move was made in response to US export bans on certain semiconductor technologies to China. Since August 1, 2023, these restrictions have been in effect, and they have had a significant impact on the sourcing of gallium, as 98% of refined gallium comes from China. A study conducted by the Center for Strategic and International Studies warns that if vulnerabilities in the gallium supply chain are not addressed, it could pose national security and economic challenges for the United States and its allies.

Gallium is a unique metal that has the interesting property of melting at room temperature, making it a curiosity in chemistry exhibitions. Similar to aluminum, gallium is not found independently in the earth's crust but is bound with other elements. The majority of gallium ore comes from the mining of bauxite, the primary ore for aluminum, as well as some zinc ore deposits. However, unlike aluminum, which is abundant, gallium is scarce, with an estimated concentration of around 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's electrochemical properties have made it valuable for rapid charging devices, which are crucial in the fourth industrial revolution. Navitas Semiconductor is at the forefront of developing gallium nitride charging systems that could reduce the home charging time for electric cars by a third, potentially influencing consumer acceptance of electric vehicles.

Since gallium is primarily mined alongside bauxite, diversifying the aluminum supply while developing downstream refining capacity is essential. Currently, China dominates the downstream refining capacity, with significant investment in Guinea, which supplies 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. Guinea, with its vast bauxite reserves, is currently under the control of a military junta, creating uncertainty about its political future.

Despite the current extraction rate of only 10% of available gallium byproduct from bauxite aluminum mining, demand for gallium can rise rapidly, as seen with rare-earth lanthanide elements. It is crucial for mineral policy analysts to develop scenarios for gallium availability that consider 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 an astonishing 2,000 years. Additionally, recycling gallium through modular design of electronic devices can alleviate market pressures.

Research on the compounds of gallium in chemical engineering programs worldwide should be prioritized to explore its potential uses. However, diversification of materials for technological usage is also important, although there may be limitations to what alternatives can offer. Ultimately, the goal should be to circulate critical materials like gallium through the geopolitical system with ecological efficiency in mind, rather than competitive expediency or the supremacy of any one country. 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.

FutureCar Staff