Export Controls on Gallium and Germanium: "China wants to negotiate"
Germanium metal 99,99% delivered Europe - Source: ISE AG
China’s Export Controls on Gallium and Germanium Send Shockwaves Through Global Markets
The dominance is particularly striking for gallium:
Key Role in Semiconductors and Optoelectronics
Bargaining Power in the Technology War
Neill, who worked in China for seven years, supports this view:
“This allows China to effectively control where its gallium goes.”
U.S. Caught Off Guard
The United States was caught off guard by the new export rules.
How Gallium and Germanium Are Produced
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 2015, Ingal 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 2021, AOS 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 germanium, Dera 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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