The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News - July 19, 2023
A superconductor with an 86-degree Fahrenheit melting point, gallium is used in next-gen smartphones, telecommunication networks, computers, LEDs, solar panels, and medical devices.
Germanium is a superconductor with optical qualities that make it critical to many military and high-tech applications such as night vision goggles, fiber optic cables, and computers.
Technology metal brokers in the United States and Europe are providing safety nets for companies seeking reliable supplies of gallium and germanium as global supply disruptions loom.
Earlier this month, China announced that starting on Aug. 1 it will be placing government-controlled restrictions on the exports of this pair of semiconductor metals that are key ingredients in next-generation smartphones, telecommunication networks, solar panels, quantum computers, and an array of other high-tech products.
While both metals are critical to the global technology sector, manufacturers are most concerned about shortages of gallium, due to China's dominant position when it comes to global supply.
According to the U.S. Geological Survey, China supplied 98% of the world's gallium in 2022 – Russia came in second at around 1%. The germanium supply chains are opaque, but USGS calculates that 54% of U.S. germanium imports last year came from China, with most of the rest coming from Germany, Belgium, and Russia.
China's apparent near monopoly over gallium supplies has global technology manufacturing companies and governments scrambling for alternative supplies.
Reuters recently reported that the U.S. does not currently have any government stockpiles of gallium to fall back on, which makes the situation more troubling for high-tech manufacturers.
"Many companies are wondering whether their supply chains for raw materials will remain resilient once Chinese exporters have to go through a licensing process as of this August," said Matthias Rueth, managing director of TRADIUM, a specialty metals trader based in Germany. "Industrial users without sufficient physical stockpiles of necessary materials may therefore face supply shortages."
TRADIUM says it "has healthy inventories of technology metals and rare earth elements stockpiled in its high-security warehouse in Frankfurt."
Gallium and germanium are among these secured stores.
In the U.S., American Elements not only has healthy stores of gallium and germanium but informed the tech industry that it has the capacity to produce both minerals essential to missile systems, computer chips, and solar panels at its plant in Salt Lake City, Utah.
A quick web search shows that American Elements sells at least 24 different forms of gallium and gallium alloys, along with at least a dozen various germanium products.
Last week, the Los Angeles-based specialty metal products dealer said it will "significantly expand production of gallium and germanium from its Salt Lake City plant" to ensure that it can continue to supply customers with this pair of critical metals.
"U.S. domestic supply will not be impacted by this short sighted decision of China," American Elements CEO Michael Silver said.
The Los Angeles-based dealer and manufacturer of critical mineral products says it will continue to supply its Chinese customers from its manufacturing facilities in Asia.
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
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