The Rising Importance of Clean Energy Metals
In the summer of 2023, Vasileios Tsianos, the vice president of corporate development at Neo Performance Materials, received urgent calls from government officials on both sides of the Atlantic. Neo Performance Materials is best known for producing rare earth magnets, essential components in electric vehicles (EVs) and home appliances. But this time, the focus wasn’t on rare earths—it was on the scarce metal gallium.
Gallium plays a crucial role in semiconductor chips, clean energy technologies, and military equipment. While Neo Performance Materials recycles a few dozen tons of high-purity gallium annually from semiconductor chip manufacturing scrap at a plant in Ontario, Canada, it remains the only industrial-scale producer of the metal in North America.
US-China Trade War: How Gallium and Germanium Became Targets
China dominates global production of gallium and germanium, another critical metal used in advanced technology. In July 2023, China announced new export restrictions on gallium, seemingly in response to potential US limitations on advanced semiconductor chip sales to China. By December, tensions escalated further when China banned exports of both metals to the United States, following the Biden administration’s move to tighten semiconductor trade restrictions.
The impact of these bans has been profound. US and Canadian companies are now exploring domestic production of gallium and germanium to reduce reliance on China. Industry experts believe this shift could reshape global critical mineral supply chains, making them more resilient and diversified.
Why Gallium and Germanium Matter for a Clean Energy Future
While not widely recognized, gallium and germanium are crucial for several high-tech applications, particularly in clean energy solutions:
- Semiconductors: Gallium is used in chips found in smartphones, EV power converters, and LED displays.
- Renewable Energy: The metal plays a key role in thin-film solar cells and silicon solar photovoltaic cells, enhancing efficiency and longevity.
- Rare Earth Magnets: Essential for electric vehicles and wind turbines, gallium helps improve performance and durability.
As global demand for clean energy and digital technologies grows, so does the strategic importance of these metals. Industry analysts believe that China’s restrictions have accelerated global efforts to diversify supply chains, reducing dependency on a single producer.
The Future of Critical Minerals in North America
The US and Canada are actively working to expand production of gallium and germanium. The Biden administration has already issued an executive order prioritizing federal funding for critical mineral projects. Meanwhile, industry leaders are closely monitoring potential policy shifts, especially if new trade tariffs are introduced under a different administration.
“These export bans are giving a major push to global critical mineral supply chain efforts, not just in the US but worldwide,” said Seaver Wang of the Breakthrough Institute, a research center focused on technological solutions for environmental challenges.
Conclusion
The US-China trade war has underscored the importance of securing a stable supply of clean energy metals. With gallium and germanium essential for semiconductors, EVs, and renewable energy, governments and industries are intensifying efforts to develop alternative sources and reduce reliance on Chinese exports. As geopolitical tensions continue, the future of critical minerals will play a decisive role in shaping the clean energy transition.
