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Export Controls on Gallium and Germanium: "China wants to negotiate"

Chart Germanium metal 2013 bis 2023 

Germanium metal 99,99% delivered Europe - Source: ISE AG

 

China’s Export Controls on Gallium and Germanium Send Shockwaves Through Global Markets

The export controls imposed by China in the summer on the high-tech elements gallium and germanium sent shockwaves through the global economy. Yet, according to a China expert, the move was not meant as an escalation, but rather as a tactical maneuver to gain leverage in the ongoing technology war.

In 2022, global production amounted to just 430 tonnes of gallium and 225 tonnes of germanium. Despite these relatively small quantities, the export restrictions introduced by China in August caused widespread alarm — largely because of the critical role these elements play in high-tech applications and the extreme concentration of production in China.

The dominance is particularly striking for gallium:

“Of the 430 tonnes produced worldwide, only ten were made outside China. It is the strongest monopoly that exists for any element on the planet,”
explains Alastair Neill, China specialist and critical minerals expert at the North American Critical Minerals Institute.

As a result, China now accounts for nearly 98% of global primary gallium production and an estimated over 80% of primary germanium output.

Key Role in Semiconductors and Optoelectronics

Gallium arsenide is used in high-performance chips and semiconductors. Gallium also has the unique ability to convert electricity into light, which makes it indispensable for optoelectronics — crucial for 5G technology and ultrafast fiber-optic networks.

The element is also used in smartphones, solar cells, and satellites. Although much more expensive than the widely used semiconductor silicon arsenide, manufacturers such as TSMC and Compound Materials (based in Saxony, Germany) rely on gallium arsenide for its superior performance.

Bargaining Power in the Technology War

Beijing justified the export restrictions on the grounds of national security. According to Michael Harz, CEO of Compound Materials, Chinese authorities are now requiring end users and importers to specify details such as the intended use, final users, and applications of gallium products.

Harz does not believe that China seeks escalation, noting that China itself reimports processed gallium products.

Neill, who worked in China for seven years, supports this view:

“This allows China to effectively control where its gallium goes.”

He sees the move as strategic calculation, pointing to the U.S. ban on exporting chipmaking equipment to China, which has significantly slowed the development of China’s 5G infrastructure. With the gallium and germanium export controls, China is likely trying to create bargaining leverage in its tech standoff with the United States.

U.S. Caught Off Guard

The United States was caught off guard by the new export rules.

“While the U.S. government holds germanium reserves, it surprisingly has none for gallium,”
Neill notes.

By contrast, Compound Materials in Saxony reportedly has reserves sufficient for six months, according to German broadcaster MDR.

Economically, the pure gallium metal market is tiny — around USD 100 million annually — meaning a temporary drop in Chinese exports would have little macroeconomic impact. However, because of its small size and specialized nature, the market offers little incentive for companies to invest in new mining projects.

How Gallium and Germanium Are Produced

According to the German Mineral Resources Agency (Dera)germanium is mainly obtained during the smelting of zinc and copper sulfide ores, as well as from coalGallium, meanwhile, is a by-product of aluminum or zinc production, with bauxite being the most significant source, accounting for around 90% of global output.

In 2022China was the world’s second-largest bauxite producer, after Australia, and is therefore able to meet its domestic demand. The West African nation of Guinea, home to the world’s largest bauxite reserves, also ranks among the top three producers.

 

 

Gallium Metal 99,99% FOB China - Source: ISE AG

 

Resumption of Gallium Production in Germany

Among the five largest gallium importers are the United States, India, Japan, South Korea, and Taiwan. According to the German Mineral Resources Agency (Dera)Germany imported between 40 and 60 tonnes of gallium annually from 2020 to 2022, with 50 to 60 percent coming from China. The remainder was sourced mainly from Slovakia.

The Slovak company CMK, founded in the 1970s in the small town of Žarnovica, produces gallium and gallium arsenide using proprietary recycling processes.

Until 2015Ingal Stade GmbH, a Germany-based company, was the largest gallium producer outside China. Its facilities were located on the grounds of Aluminium Oxid Stade GmbH (AOS Stade). However, due to a sharp decline in gallium prices, Ingal Stade ceased production in 2016 and was subsequently dissolved.

When gallium prices rebounded in early 2021AOS Stade announced plans to resume gallium production alongside its aluminum operations by the end of 2021. Yet, this has not happened to date, and the company declined to comment on the current status when contacted by the Institute for Rare Earths.

Bauxite from Conakry to Stade

In 2022, the Neues Stader Wochenblatt reported that AOS Stade had applied to the Lüneburg Trade Supervisory Officeto raise the embankments of its red mud disposal site from 16.5 to 30 meters, although the current maximum permitted height is 21 meters.

The disposal site lies about four kilometers west of the Elbe River, near AOS Stade’s production and port facilities. The company sources its bauxite from Guinea, a country that has been under military rule since a coup in 2021 that ousted President Alpha Condé, who remains under house arrest.

AOS Stade’s parent company is Dadco, an aluminum group owned by British-Canadian businessman Victor Dadaleh, whose corporate headquarters are registered in the Channel Islands.

Dadco holds a 10 percent stake in Halco Mining, which in turn is a shareholder of the Compagnie des Bauxites de Guinée (CBG) — one of Guinea’s two largest bauxite producers.

Western Supply Still Uncertain

Although Canada, the United States, Belgium, and Russia also produce gallium and germaniumDera concludes that these countries cannot meet global demand, at least not in the short or medium term.

China’s export restrictions currently remain controls rather than outright bans, emphasizes Dera expert Maren Liedtke, who warns against unnecessary panic.

At the same time, the West lacks China’s ability to collect and process bauxite from multiple sources at centralized facilities — a key factor behind China’s dominance in gallium production.

“That kind of coordinated cooperation just doesn’t work as well here in the West, where every company tends to operate on its own,”
explains Alastair Neill.

Germanium, Gallium, 225 Tonnen Germanium, 430 Tonnen Germanium, 5-G Technologie, CMK, Bauxit, DERA, Exportverbot, Halco, TSMC, Slowakei, Solarzellen, Monopol, Halbleitern, Gallium Lagerbestände

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ISE AG opens open customs warehouse in Zurich/Embrach

 

Zoll Lager Embrach
Lucerne, June 26, 2024 – We are pleased to announce that, as of today, we are operating our own open customs warehouse in Embrach near Zurich.

In shared warehouses, individual storage units, and high-security vaults and rooms, we can store all types of metals and precious metals — provided they are non-toxic, non-flammable, and non-explosive.

We offer storage facilities both in closed bonded warehouses and open bonded warehouses. In closed bonded warehouses, the Swiss customs authorities record and regulate all goods and personnel entering and leaving. In open bonded warehouses, the warehouse operator reports all goods movements directly to customs.

Our closed bonded warehouse areas are GRASP-certified. With a distance of only 8 km from Zurich Airport (Kloten), our facilities are ideally located for convenient access. We are pleased to offer free transport between Kloten and Embrach as part of our customer service.

Safekeeping Receipts are issued directly by ISE AG, providing a direct reference to your documentation created by ISE AG. This ensures your documentation is complete and consistent.

Our storage facilities are open Monday to Thursday, from 8:00 a.m. to 5:00 p.m.

Comprehensive Logistics Services

As an additional service, we are now able to take care of your logistics needs worldwide.
No matter where your goods need to be collected or delivered, we are your reliable partner for specialized metal logistics.

We handle loading, import and export procedures, customs clearance, and storage.
If required, we can collect your goods, transport them to our facility, conduct inspections and sample taking, and return them to you afterwards.

At the end of the process, you will receive professionally recognized documentation, while your goods remain secure and within reach.

Metal Powder Reconditioning

In our own production facilities located directly next to our warehouse, we can recondition your metallic powders.
All metal powders share a common characteristic: after a certain time, they begin to oxidize and clump, which causes them to lose their original properties and value.

Metal powders stored in sealed containers under argon should be reprocessed every 10 years. Powders stored in sealed glass ampoules can last for several decades.

We are happy to advise you on how we can recondition your materials, enabling you to store them safely for another 10 years without concern.

Your Trusted Partner in Switzerland

The Institute for Rare Earths and Metals AG (ISE AG) in Switzerland is your reliable partner for metal transport, storage, analysis, evaluation, and reconditioning — ensuring that the value and integrity of your materials are preserved for decades to come.

Our Contact to ISE AG: This email address is being protected from spambots. You need JavaScript enabled to view it. or +41 41 5 11 11 20

ISE AG, Institut für seltene Erden und Metalle AG, Analyse, anerkannte Dokumentation, Bewertung, Edelmetallen, Embrach, Einzellagern, Flughafen Zürich Kloten, Freilager, geschlossenes Freilager, Glasampullen, GRASP, Hochsicherheitstresoren, Logistik, Offenes Zollfreilager, Preis, Produktionshallen, zertifiziert, Zürich

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Stealth Technology Using Barium Hexaferrite and Ultrafine Copper Powder in Coatings

Since 2008, intensive research has been carried out with various additives in different combinations to develop paints that can give their metallic substrates a radar-absorbing camouflage coating. In 2022, a very interesting test using barium hexaferrite and ultrafine copper powder in combination was published, showing that the material absorbed about one-third of incident radar waves. In 2023, sales of ultrafine copper powder suddenly quadrupled compared to the previous year.

The Technology

Polymer composites have become an integral part of modern life due to their light weight, ease of processing, and exceptional combination of properties. They are now found in aerospace, aviation, and even defense industries. In this context, the use of polymer composites for radar absorption applications has been discussed.

Radar is a detection system that uses electromagnetic waves to determine information such as the distance, altitude, direction, or speed of objects. It can detect both moving objects such as aircraft, ships, and vehicles, and stationary ones such as terrain. Radar can also be used to gather meteorological data. This technology, which revolutionized air and naval warfare, is one of the most important technological developments of World War II. In fact, the term RADAR was coined in 1940 by the U.S. Navy as an acronym for RAdio Detection And Ranging. Since then, it has gained importance not only for military and police use but also for flight navigation and weather observation.

At first glance, radar operation seems simple: a signal is emitted, it bounces off an object, and the reflected signal is received. This is similar to how an echo works—but instead of sound, radar uses microwaves. The degree of reflection and refraction depends on the properties and surface of the material hit by the signal. When a radar signal strikes a perfectly flat surface, it is reflected in one direction. When it hits an uneven surface, it is scattered in multiple directions, and only a small portion of the original signal returns to the receiver. Another way to reduce the reflected signal is through absorption of the radar waves by the material itself.

Radar-absorbing materials (RAM) have a mechanism that traps incoming radar waves within the material, preventing them from being reflected. The earliest forms of such materials were developed by the Germans during World War II.

Barium hexaferrite and ultrafine copper powder were used to produce radar-absorbing composite coatings. The barium hexaferrite powders were synthesized using the sol-gel method. After synthesis, mixtures were prepared by adding barium hexaferrite and ultrafine copper powder in various amounts to a polyurethane resin (to determine the dependence on concentration). These mixtures were then applied to glass and metal substrates, producing coatings about 3 mm thick, which were dried at room temperature in air.

The morphology of barium hexaferrite shows smooth-edged, plate-like particles with an average particle size of about 5 μm. The copper particles are relatively large, between 7–10 μm.

The radar absorption of the sample containing 5% barium hexaferrite and 10% copper powder reached a maximum of 11.38%, while increasing the copper content further boosted absorption beyond 12%. Theoretically, maximum absorption could exceed 80%.

As for the mechanism of copper, copper itself does not absorb electromagnetic waves. The radar absorption mechanism in copper differs slightly from that in barium hexaferrite. When electromagnetic waves strike the copper surface, the electric field drives free electrons, generating an alternating current. These oscillating electrons create a magnetic alternating field in and around the conductor. This generates an electromagnetic counterforce that confines the charge carriers to the surface of the conductor. Thus, the electromagnetic waves are either absorbed by the electrons or reflected in the same direction, with some of the electromagnetic energy dissipated as heat.

Analysis of the results shows that coatings reinforced with barium ferrite and copper powder exhibit higher magnetic saturation values than single-component coatings. As the amounts of barium hexaferrite and copper increase, radar absorption also increases. The addition of barium hexaferrite and copper therefore creates a synergistic effect, enhancing absorption performance. This synergy arises because the additives contribute independently through their magnetic and electrical properties—each activating different mechanisms that together improve radar absorption.

The Copper Powder Market

Copper powder is primarily produced in Russia, Canada, and Chile. In Canada and Chile, mostly biologically derived, nearly spherical copper powder is made, often used in pharmaceutical applications. In Russia, nearly all copper powder production is for technological uses.

With the (hot) war Russia began against Ukraine in 2022, global trade patterns changed dramatically. Western banks now rarely process payments related to Russian goods. As a result, thousands of Russian companies restructured—relocating operations, moving machinery abroad, or restarting under new names in neighboring countries. Consequently, we now see copper powder producers operating along the Russian border, from Estonia to Kazakhstan.

Because most producers of ultrafine metallic powders are our clients, we are in a good position to monitor the market for ultrafine copper powder. We have seen increasingly large volumes traded. In 2018, global trade was estimated at around 20 tonnes. By 2023, we alone observed over 60 tonnes changing hands, suggesting a current annual market volume of roughly 100 tonnes.

Since demand in other known application areas of copper powder has not grown nearly as much in the past five years, we suspect the emergence of a new player — the military. Known applications for copper powder include: electronics, semiconductors, antibacterial coatings, 3D printing, pharmaceuticals, and paint production.

For the military, the potential applications are virtually limitless. From satellites to armored vehicles, anything could be made invisible to modern radar systems. Such a tactical advantage could be worth billions of U.S. dollars to the world’s militaries.

We will continue to monitor this market and report again.

ISE AG, Institut für seltene Erden und Metalle AG, Kanada, Militär, Die bekannten Anwendungsgebiete von Kupferpulver, 3-D Druck, Copper powder, Chile, elektrischen strom, Elektronik, Pharmalogie, Lack, Halbleiter, Elektromagnetische Wellen, Antibakterielle beschichtung, Radar, Schiffe, Ultrafeinen Kupferpulver, US-Marine, ultrafeinen, Verteidigungsindustrie, Wechslestrom, Zweiten Weltkrieg

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Contact Request

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Hafnium

HF • Atomic Number 72

Hafnium

Hafnium is a hard, ductile metal with a bright silver luster. It is relatively resistant to acids. Its chemical properties are very similar to zirconium; in fact, the chemical behavior of hafnium and zirconium is more alike than any other known element pair.

The main applications of hafnium include control rods in pressurized water reactors, supercapacitors, semiconductors, superalloys for aerospace industries, and high-temperature ceramics. Tantalum-hafnium carbide, with a melting point of 4,215 °C (7,619 °F), is one of the most refractory substances known.

Hafnium is obtained exclusively as a byproduct of zirconium refining. The leading global exporters of zirconium mineral concentrates are Australia and South Africa.

The global hafnium market is estimated at about 80 tons annually. Production is concentrated in a few countries: China, France, the USA, and Russia.

Framatome, a subsidiary of the French electricity company EDF, dominates the market for nuclear-grade hafnium.

Hafnium is considered a critical raw material in major industrial countries and China.

  • History

    Hafnium was discovered in 1923 by Dutch physicist Dirk Coster and Hungarian-Swedish chemist George Charles von Hevesy. They identified it in zirconium minerals from Norway and Greenland by analyzing their X-ray spectra. The element was named after the Neo-Latin name for Copenhagen, Hafnia, the city where it was discovered.

    The discovery history of hafnium involved a long search. Dmitri Mendeleev had predicted in 1869 an element with properties similar to titanium and zirconium. Many scientists searched unsuccessfully, including Georges Urbain and Henry Moseley. Misinterpretations led to false claims of discovery, such as “Celtium” in 1911, which was later identified as lutetium.

    In the 1940s, the U.S. nuclear industry began using hafnium for control rods in nuclear reactors because, unlike zirconium, hafnium strongly absorbs neutrons.

  • Application

    The largest application area for hafnium is the aerospace industry. It is used in superalloys for components such as engines and in the form of hafnium-containing coatings for high-temperature components.

    Another significant consumer of hafnium is the nuclear power industry. Due to its high neutron absorption cross-section and excellent mechanical properties, hafnium is used in control rods in nuclear reactors.

    Hafnium also plays a role in microelectronics and the semiconductor industry. In capacitors, hafnium is used as a high-k dielectric. It can replace silicon dioxide, enabling thinner insulating layers, which improves the performance and miniaturization of semiconductor devices.

    New findings regarding the properties of hafnium oxide suggest that these materials could play a key role in the development of new memory technologies. Due to the ferroelectricity of hafnium oxide, data can be stored for extended periods without power. These memory applications could pave the way for larger and faster computer systems by reducing the heat generated through continuous data transfer to volatile memory.

  • Occurence, Mining and Extraction

    The most important minerals for the commercial extraction of hafnium are zircon and baddeleyite, which occur as by-products during the extraction of titanium minerals. In nature, hafnium is always bound to zirconium compounds and is difficult to separate.

    Due to the strong chemical similarity between hafnium and zirconium, separating the two elements from each other is very complex and expensive. The preferred methods for separating hafnium and zirconium are ion exchange and solvent extraction techniques. However, for some applications, separation of the two elements is not necessary.

    The main producing countries for hafnium-containing zirconium minerals are Australia and South Africa, where they are obtained from mineral sands and river gravels. By far the largest reserves are located in Australia.

    The Australian mining company Iluka Resources is the world's largest producer of zirconium ores, followed by the US company Tronox and the British-Australian mining corporation Rio Tinto.

    Framatome, a subsidiary of the French electricity company EDF, dominates the market for nuclear-grade hafnium. Allegheny Technologies Incorporated is the leading US manufacturer of hafnium for the aerospace and nuclear industries, producing highly pure hafnium for turbine blades.

    China National Nuclear Corporation is China's largest producer of hafnium.

    Chepetsky Mechanical Plant, a subsidiary of the state-owned corporation Rosatom, is an important Russian manufacturer supplying hafnium for the domestic nuclear and defense industries.

    In 2024, the global sales volume of hafnium (Hf) is estimated at around 80 tons; however, the exact quantity cannot be determined with certainty due to secrecy in the nuclear and military sectors.

    Developments in the electronics industry, increased investments in the defense sector, and the expansion of nuclear power plants are driving the growing demand for hafnium.

  • Substitution

    In alloys, hafnium can be replaced by magnesium, cobalt, chromium, niobium, and tantalum. In certain superalloys, hafnium is interchangeable with zirconium.
    In control rods of nuclear reactors, boron or cadmium-silver-indium alloys can be used instead of metallic hafnium.

     

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