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The urgency of transitioning to a clean energy system to combat global climate change and the crucial role of critical metals, especially gallium (Ga), in this process. Ga is in high demand for various emerging technologies, particularly in semiconductor materials and solar panels for low-carbon technologies. However, its supply is constrained by its status as an aluminum production byproduct, limited reserves, and China’s dominance in global production.
Gallium’s applications in the global economy are growing, particularly in sectors driving the transition to a low-carbon economy. The global rise of the LED industry, the growth of photovoltaic solar panels, and advances in electronic devices have fueled increasing demand for gallium. Its unique properties, such as the ability to form stable alloys with other metals and its semiconducting properties, make it indispensable for optoelectronic devices and green technologies.
However, the small size of the gallium market and its dependence on the larger aluminum industry make gallium prices highly volatile. For instance, gallium prices soared to $692/kg in 2011 due to rising demand from China’s LED industry, but fell sharply by 2016 due to oversupply, driving several gallium producers out of business. This volatility highlights the fragile nature of gallium’s supply-demand balance, with China playing a central role in shaping the global market.
The global gallium (Ga) cycle is complex and resource-intensive. Of the 16,910 metric tons of Ga contained in bauxite from the aluminum production route, only 4,508 metric tons made it to the global market. Most of the remaining Ga was lost during the aluminum cycles, often trapped as impurities or discarded in red mud. Additionally, the zinc production route contributed 381 metric tons of Ga, but 11,047 metric tons were lost in zinc leaching residues. Gallium is primarily used in light-emitting diodes (LEDs) (42%) and integrated circuits (ICs) (30%) during fabrication. For final products, NdFeB magnets accounted for 37% of Ga consumption. However, the Ga supply chain exhibits significant inefficiencies, with 2,511 metric tons lost during fabrication and 488 metric tons released into the environment from end-of-life (EoL) products due to inadequate recycling.
Regionally, China has emerged as the dominant player in the global gallium market, accounting for more than 95% of primary gallium production since 2017. increasing more than sixfold between the first and second decades of the 21st century. By 2013, China held the largest in-use Ga stock (119 metric tons), and since 2017, it also accounted for the highest EoL flows (14 metric tons). The United States, as a major consumer and importer, brought in 663 metric tons of low-purity primary Ga for refining and domestic use, primarily for ICs and LEDs. Japan, the largest importer of low-purity Ga (1,017 metric tons), focused on refining and manufacturing for its electronics industry, particularly ICs. It also led to the recycling of scrap from new production. Germany, a key producer of low-purity Ga, supplied its electronics industry, but its production declined sharply after 2017 due to lower prices. The rest of the world primarily served as a source of raw materials and a market for semi-finished products, particularly during the 2000-2010 period.
These regional differences highlight the uneven distribution of Ga production and consumption, as well as the need for improved recycling and recovery efforts to ensure a stable global Ga supply.
The heavy concentration of gallium production in China exposes the global supply chain to risks. Countries such as the United States, Japan, and Germany, which have high gallium demand but limited domestic production, face significant dependence on imports. The lack of diversification in gallium supply sources means any disruption in China’s production or exports could have ripple effects across industries reliant on gallium, from electronics to renewable energy technologies.
Policymakers must address vulnerabilities in gallium’s global supply chain by encouraging recycling, expanding secondary supply sources, and fostering international cooperation. Recycling policies are particularly crucial because substantial amounts of gallium are lost during the production of LEDs, ICs, and PV panels. Recovering gallium from industrial scraps, especially from LED fabrication, could reduce supply pressures. Moreover, recycling NdFeB magnets, which contain substantial amounts of rare earth elements and gallium, could meet a growing portion of the demand for these materials.
Establishing global trade agreements and promoting innovative recycling technologies are necessary to maintain a stable gallium market. For example, the simultaneous recovery of gallium and other valuable metals from NdFeB magnets could reduce reliance on primary extraction, thereby benefiting both the environment and the economy.
Gallium’s role in the modern economy extends far beyond its small market size. It is essential for the technologies driving the green transition, from energy-efficient lighting to solar power. However, the inefficiencies in its supply chain, combined with its critical applications, pose both challenges and opportunities for policymakers and industries. As global demand for gallium continues to grow, driven by the push for sustainable technologies, addressing supply chain vulnerabilities, promoting recycling, and enhancing international cooperation will be vital to ensuring a secure and resilient supply of this scarce but indispensable metal.