China’s Export Ban on Gallium and Germanium Poses Supply Chain Challenges for the US
China has imposed a ban on exporting gallium and germanium to the United States, escalating trade tensions between the two nations. These minerals are critical for industries ranging from renewable energy to military technology and electronics, and the ban could have far-reaching implications.
Gallium and germanium are essential components in technologies such as computer chips, night vision equipment, electric vehicles, and solar cells. The U.S. and European Union rely heavily on these materials for sectors vital to their economies and national security. However, China dominates the global supply, accounting for 98% of primary gallium and 91% of primary germanium production. These materials are derived from trace amounts in byproducts of other mining operations, such as bauxite for gallium and zinc refining for germanium.
The export restrictions follow U.S. efforts to limit China’s access to advanced semiconductor technologies, citing national security concerns. These chips can power applications like artificial intelligence-driven electronic warfare and hypersonic weapons. China has justified its ban, citing the minerals' dual-use nature for both civilian and military purposes.
The U.S. Department of Defense reportedly holds a strategic reserve of germanium but none for gallium. A U.S. Geological Survey report in October 2024 estimated the economic impact of a total ban at $3.4 billion in GDP losses for the U.S. The minerals' applications extend beyond defense, playing key roles in everyday technologies like LEDs, optical fibers, and electronic devices.
Options to mitigate the ban's effects include boosting domestic mining. Gallium could potentially be recovered from U.S. zinc deposits, though it currently isn’t extracted. The Apex mine in Utah, which once produced both minerals, has been closed for decades. Another approach is investing in mineral production facilities in allied nations. Canada’s Teck Resources, for instance, extracts germanium at its Trail smelter in British Columbia.
Recycling could offer a partial solution, as gallium and germanium can be recovered from old electronics. However, current recycling rates are low—around 10% for gallium and 30% for germanium—and technical challenges make it difficult to isolate these minerals from complex components like computer chips.
While recycling may become more viable with technological advances, it is not a short-term fix. The immediate impact of China’s ban underscores the need for diversified supply chains and innovation in recovery methods to reduce reliance on Chinese resources.
