The US-China trade war has sparked a global confrontation over rare earth minerals, with far-reaching consequences for the economy, environment, and technological advancements.
The ongoing US-China Trade War and its impact on critical minerals such as gallium and germanium have far-reaching consequences, affecting not only the economy but also the environment and technological advancements.
The US-China trade war began in 2018, with the Trump administration imposing tariffs on Chinese goods.
China retaliated with its own tariffs, leading to a cycle of escalation.
The conflict involves issues such as intellectual property theft, technology transfer, and market access.
According to the US Census Bureau, the trade deficit between the two countries reached $345 billion in 2020.
“The World Trade Organization (WTO) has been involved in mediating disputes, but progress remains slow.”
The trade war has had significant economic impacts on both countries, with some industries experiencing losses and others gaining from increased exports.
Gallium: A Rare Metal with a Crucial Role is used in various high-tech applications, including ‘semiconductor chips’ , clean energy technologies, and military equipment. It’s also essential for making rare earth magnets, thin film solar cells, and silicon solar photovoltaic cells. With its impressive electrical properties, gallium plays a vital role in modern life.
Gallium is a soft, silvery-white metal with the atomic number 31.
It is a rare earth element and a member of the boron group in the periodic table.
Gallium has a low melting point of 29.76°C (85.57°F), making it one of the few elements that are liquid at room temperature.
It is used in semiconductors, LEDs, and other electronic devices due to its high conductivity and ability to emit light.
The China-US Trade War: A Chokehold on Critical Minerals has put a strain on the global supply chain and highlighted the need for diversification. China has been the dominant producer of low-purity gallium, accounting for virtually all of the world’s output in 2022.
In response to the Chinese export ban, several companies in the US and Canada are considering expanding production of gallium to meet US demand. ‘We have the capacity to double our production’ , stated Vasileios Tsianos, vice president of Neo Performance Materials, based in Ontario, which recycles high-purity gallium from semiconductor chip manufacturing scrap.
Germanium: A Metal Essential for High-Tech Applications is used in a range of high-tech applications, including fiber optic cables, infrared lenses, ‘semiconductor chips’ , and solar cells. Like gallium, it’s essential for clean energy technologies and military equipment. The United States relies heavily on China for its germanium needs.
Germanium is a hard, gray-white metalloid element with the atomic number 32.
It was discovered in 1886 by Clemens Winkler and is named after Germany.
Germanium has a wide range of applications, including electronics, optics, and solar cells.
Its unique properties make it an essential component in many devices, such as transistors, diodes, and infrared detectors.
Germanium is also used in the production of fiber optic cables and laser materials.
While recycling can fill some of the nation’s gallium and germanium needs, there are also new sources of production capacity emerging. ‘This initiative could provide a significant source of production capacity in the future’ , as the Department of Defense has already initiated a program for recovering optical-grade germanium from old military equipment.
The Business Case for Producing Critical Minerals is now more attractive due to the recent geopolitical drama, causing a ‘bifurcation’ in the price of gallium, making it more attractive for companies outside of China to produce these metals.
In conclusion, the US-China trade war has highlighted the need for diversification and resilience in critical minerals supply chains. As the world becomes increasingly dependent on clean energy technologies and high-tech applications, securing a stable and reliable source of essential materials is crucial.
