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📦 Gallium

Gallium

HS Code:

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Overview

Gallium (HS Code: 8112.92) is a rare metal primarily used in the electronics industry, especially in the production of semiconductors, LEDs, and solar panels. It is a critical material for high-tech applications due to its unique properties, such as a low melting point and high conductivity. Gallium is often extracted as a byproduct of aluminum and zinc mining, making its supply chain dependent on the production of these primary metals. Global trade in gallium is influenced by technological demand, geopolitical factors, and resource availability.

Total Trade Volume

Approximately $250 million USD

Data from 2022

Source

United Nations Comtrade Database and International Trade Centre (ITC)

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

15% (imposed by certain developing countries on imports)

Lowest Rate

0% (under free trade agreements like EU-Japan EPA)

Common Restrictions

  • Export quotas imposed by major producers like China
  • Licensing requirements for strategic materials
  • Environmental regulations on mining and processing
  • National security-related export controls

Market Trends

Rising demand for gallium in renewable energy technologies

Increased trade volume due to the growth of solar panel manufacturing and energy-efficient lighting solutions

2021-2023

Supply chain diversification efforts

Countries like the US and EU are seeking alternative sources to reduce dependency on Chinese gallium, driving new trade partnerships

2022-2023

Technological advancements in semiconductor production

Higher purity gallium requirements are pushing up prices and influencing trade toward specialized suppliers

2020-2023

Recent Developments

China Imposes Export Controls on Gallium

In July 2023, China announced export restrictions on gallium and germanium, citing national security concerns. Exporters must now obtain special licenses.

July 2023

Significant disruption in global supply chains, with potential price spikes and increased trade tensions. Countries like the US and Japan are accelerating efforts to secure alternative suppliers.

EU Critical Raw Materials Act

The European Union included gallium in its list of critical raw materials, aiming to boost domestic production and reduce reliance on imports.

March 2023

Encourages investment in recycling and mining within the EU, potentially reshaping trade patterns by reducing import dependency.

US-Japan Critical Minerals Agreement

The US and Japan signed an agreement to collaborate on critical minerals, including gallium, to ensure stable supply for semiconductor industries.

March 2023

Strengthens bilateral trade in gallium, potentially increasing trade volumes between the two nations and reducing reliance on other exporters.