China has banned US exports of key minerals for computer chips, leaving Washington with limited options

China recently banned the export of gallium and germanium ores to the United States, amid growing trade tensions between the two countries.

Minerals have crucial economic value as they are used in computer chips, in military technology such as night vision goggles, and in the renewable energy industry, where they are important for the manufacturing of electric vehicles and cells solar. All of these areas are very sensitive sectors for the United States and the EU.

China has overwhelming market power over supply, as it is the source of 98% of primary gallium and 91% of primary germanium. Primary refers to raw sources such as ore. In many sectors where minerals are used, there are no substitutes.

Gallium and germanium are present in very low concentrations as by-products of major minerals, called trace elements. The main source of germanium is zinc refinery residue and coal fly ash (a powdered residue produced when coal is burned in power plants).

Gallium is mainly produced as a by-product of bauxite ore (which is the main source of aluminum) as well as during the processing step to extract aluminum from bauxite.

China's ban on exports of these minerals to the United States closely followed Washington's third crackdown in three years against China's semiconductor (computer chip) industry. The United States wants to curb exports to China of advanced chips that could be used in applications that threaten U.S. security.

Gallium melts slightly above room temperature. E-Rik / Shutterstock

For example, advanced chips could be used in electronic warfare applications using artificial intelligence (AI) or in advanced weapons systems such as hypersonic missiles. China has said its ban on gallium and germanium is due to the dual military and civilian uses of the minerals.

According to a 2023 Reuters report, the US Department of Defense has a strategic stockpile of germanium, but no reserves of gallium. In October 2024, the US Geological Survey (USGS) estimated that a total ban on gallium and germanium exports could result in a loss of US$3.4 billion to US GDP.

The uses of minerals extend well beyond national security applications. Gallium is used in solid-state lighting devices, including light-emitting diodes (LEDs). Germanium is used in optical fibers and as a catalyst to speed up reactions used in the manufacture of polyster and PLA (a bioplastic). Minerals are essential to making the electronic devices we rely on every day, such as smartphones, screens and laptops.

Germanium is used in optical fibers, among other applications. Asharkyu / Shutterstock

So what can the United States do to circumvent the effects of the ban, given China's near-monopoly on primary production of these essential minerals?

One solution would be for the United States to revive and expand domestic exploitation of these minerals. The Pentagon has already indicated that this possibility was being studied.

As mentioned earlier, gallium is primarily recovered as a byproduct of aluminum or zinc ore processing. The USGS says some zinc deposits in the United States contain up to 50 parts per million of gallium, but the mineral is not currently recovered from these deposits.

Washington is concerned about the export of advanced computer chips to China, which could be used in weapons such as hypersonic missiles. US Army

Historically, reported germanium production in the United States has been limited to a single site, the Apex Mine in Washington County, Utah. The Apex mine produced gallium and germanium as primary products in the mid-1980s, but has since closed.

Another option for the United States is to diversify primary production of these minerals by investing in zinc, coal, and bauxite refineries in other friendly countries since, for example, only 3-5% of germanium is recovered of the zinc and ore refining process. coal. Canada's Teck Resources is the largest supplier of germanium in North America, extracting the mineral from its Trail smelter in British Columbia.

An alternative would be to intensify extraction from so-called secondary sources, which mainly means the recycling of old electronic devices and other materials that have reached the end of their life. There are no official statistics on secondary supply, but some reports estimate that no more than 10% of the total gallium supply comes from secondary sources. This share reaches 30% in the case of germanium.

However, there are significant obstacles to increasing the secondary production of these minerals. The recycling recovery process is very complex since, in hardware such as computer chips, minerals are usually combined with other materials. This makes it difficult to isolate minerals.

Therefore, the Chinese ban represents a major disruption to the supply chain of these minerals. The drop in primary supply cannot be compensated in the short term by secondary supply (recycling), because the recovery yield is still low and its cost is not competitive.

In the long term, technological advances in this process of recovering the two minerals could reduce its cost and increase supply, thereby reducing dependence on Chinese minerals.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos