China’s near-total control of the global gallium market—a metal critical for semiconductors, defense tech, and next-gen electronics—has sent prices soaring to 14-year highs after Beijing restricted exports in 2023. Now, the U.S. and Europe are scrambling to break China’s dominance, turning to mining waste streams and reviving long-dormant refining techniques.
Why Gallium Matters:
- Semiconductor & Defense Lifeline: Used in radar systems (F-35 jets, Patriot missiles), 5G networks, and gallium nitride chips (doubling radar detection ranges).
- China’s Monopoly: Produces ~95% of global supply—leveraged as a trade weapon after U.S. chip sanctions.
- Economic Domino Effect: A full export ban could cost the U.S. $3.1B annually, hitting semiconductors, EVs, and PCs hardest.
The West’s Counterattack:
- Mining Waste Revival:
- Rio Tinto now extracts gallium from alumina refinery waste in Quebec.
- Greece’s METLEN plans 50-ton/year output by 2028 (EU-backed project).
- Tech Catch-Up: Western firms must relearn refining after China’s 2010s price crash killed competitors.
- Broader Critical Minerals Push: Similar efforts for scandium (jet engines) and tellurium (solar panels).
China’s Next Move:
- Export Controls on Tech: Beijing may restrict processing know-how, not just raw materials.
- Price Arbitrage: Domestic Chinese gallium prices are falling as surplus stock builds, while global prices keep rising.
China’s Gallium Stranglehold: Can the West Break Beijing’s Grip on Critical Minerals?