Prices for gallium, used in semiconductor manufacturing, rose 17% to $595 per kilogram, the highest since 2011, following export restrictions from China.

by Jako K

The price of gallium, a metal used in semiconductors and advanced technology, has reportedly soared to a high of $595 per kilogram due to export restrictions imposed by China.

Gallium Prices Jump to Highest Since 2011 Following China's US Export Curbs - Bloomberg
https://www.bloomberg.com/news/articles/2024-12-13/gallium-rises-to-highest-since-2011-following-china-export-curbs

Pricing for key chipmaking material hits 13-year high following Chinese export restrictions — China's restrictions on Gallium exports hit hard | Tom's Hardware
https://www.tomshardware.com/tech-industry/pricing-for-key-chipmaking-material-hits-13-year-high-following-chinese-export-restrictions-chinas-restrictions-on-gallium-exports-hit-hard

On December 2, 2024, the US government announced sanctions to strengthen restrictions on semiconductor-related exports to China. 140 Chinese companies were added to the 'Entity List,' which places a ban on all semiconductor products, effectively banning the export of equipment and memory necessary for semiconductor manufacturing.

The United States tightens export controls on high-bandwidth memory (HBM) due to concerns about China's military use of AI, adding 140 Chinese companies to the Entity List - GIGAZINE

Following the U.S. government announcement, the Chinese Ministry of Commerce announced in a statement on December 3, 2024 that it would ban the export of gallium, germanium, antimony, and other metals in the future.

China bans exports of key minerals used in semiconductors and batteries to the US as a countermeasure against US tightening semiconductor regulations to prevent military use - GIGAZINE

According to the United States Geological Survey, China will account for 98% of global production of gallium in 2023. Gallium nitride is used as a material for blue light-emitting diodes and semiconductors for chargers, and gallium arsenide is used as a material for semiconductor elements, so if it becomes difficult to obtain gallium, it will deal a major blow to the production of semiconductors and electronic components.

China has been restricting the export of gallium since July 2023, but this decision will prohibit the export of gallium to the United States for high-tech and military uses. In response, the price of gallium rose to $595 per kg on December 13. This is a 17% increase from the price on December 11, and is the highest price since 2011.

by csucmm

China's moves are also impacting the broader critical minerals market. The export restrictions have raised concerns of further restrictions on other strategic resources, leading to increased efforts in the US, Europe and elsewhere to reduce reliance on supplies from China. But gallium is costly to extract and process, making alternative production difficult to establish. Analysts said it could take years to ramp up production in areas such as Canada and Europe, which could keep prices high in the short term.