Faraday rotator supplier GRANGPT issued a statement on production cuts. The core upstream raw material for Faraday rotators is SGGG (Substituted Gadolinium Gallium Garnet), which is made from bismuth-substituted rare-earth garnet using the liquid phase epitaxy (LPE) method. Nearly all of the rare earths used by GRANOPT’s substrate supplier, SMM Precision, relied on supply from China, and the time consumed in the current acceptance process by China’s Ministry of Commerce has far exceeded expectations, so the company will gradually reduce Faraday rotator production starting in January 2026.

The National Institute of Advanced Industrial Science and Technology (AIST) in Japan recently announced the successful development of a copper gallium selenide (CuGaSe₂) solar cell with a conversion efficiency of 12.28%, setting a world record for indium-free wide-bandgap chalcogenide solar cells in the same frequency band. The research team enhanced the open-circuit voltage and cell performance by incorporating aluminum to form a back-surface field and optimizing the buffer layer. This achievement provides a new approach for the development of high-efficiency tandem solar cells.

Customs data show that China's exports of wrought and unwrought gallium in March 2025 stood at approximately 0.3 metric tons, marking a sharp month-on-month decrease compared to February's export volume of around 5 metric tons.

Customs data showed that China's exports of wrought and unwrought gallium in March 2025 were around 0.3 mt, down significantly MoM from the approximately 5 mt exported in February.

SMM January 23: Macro factors, on November 15, with approval from the State Council, the Ministry of Commerce, in conjunction with the Ministry of Industry and Information Technology, the General Administration of Customs, and the State Cryptography Administration, issued Announcement No. 51 of 2024, releasing the "Export Control List of Dual-Use Items of the People's Republic of China." This list, effective from December 1, 2024, includes items related to antimony, germanium, gallium, magnesium-based biomaterials, among others. In early December, the Ministry of Commerce announced that, in accordance with the relevant provisions of the "Export Control Law of the People's Republic of China" and other laws and regulations, to safeguard national security and interests and fulfill international obligations such as non-proliferation, it decided to strengthen export controls on related dual-use items to the US. The announcement specifies the following: 1. Prohibition of exports of dual-use items to US military users or for military purposes. 2. In principle, no licenses will be granted for the export of dual-use items related to gallium, germanium, antimony, and superhard materials to the US; stricter end-user and end-use reviews will be implemented for the export of dual-use graphite items to the US. Any organization or individual in any country or region that violates the above provisions by transferring or providing related dual-use items originating from the People's Republic of China to US organizations or individuals will be held legally accountable. This announcement took effect upon its release. According to customs data, gallium exports in 2023 were approximately 45 mt, while customs data for January-November 2024 indicates gallium exports of around 54 mt. It is expected that the full-year customs data for 2024 will show significant growth compared to 2023. However, the policy announcements in November-December indicate that China's export control measures for metals such as gallium and germanium will remain stringent, or even become stricter. This suggests a potential decline in the overall export volume of gallium and germanium in the future (2025). Fundamentally, from the supply side, in Q4, with the commissioning of gallium production lines by manufacturers such as Huajin, domestic gallium production continued to show a gradual upward trend. Given that the overall industry gross profit margin for gallium remains relatively high (estimated at around 40%), there is potential for further production growth in 2025 as output from manufacturers such as Pioneer Chongqing and Xinfa Fangyuan enters the market. For the overall production in 2024, the domestic gallium market's annual production is estimated to reach 770 mt, representing a slight increase compared to 2023. Demand side, in Q4, domestic demand slightly declined compared to Q3, mainly due to reduced gallium usage in the magnetic materials industry and decreased gallium consumption caused by lower PV production. Gallium consumption in the semiconductor sector remained relatively stable. For 2024 overall, the magnetic materials industry is estimated to consume around 145 mt of gallium, the PV industry approximately 80 mt, and the semiconductor sector about 330 mt. Including other industries, the actual gallium consumption in 2024 is estimated at around 630 mt, while the apparent consumption is estimated at 720 mt. This indicates that the gallium industry is currently in an inventory buildup phase, which has led to a weaker downward trend in gallium prices in Q4. Market trend forecasts suggest that domestic gallium prices have shown an upward trend within a year after export controls were implemented, reflecting a certain degree of healthy self-circulation development in the domestic gallium industry. The price decline in Q4 was mainly influenced by reduced gallium consumption in the magnetic materials and PV industries, which is a short-term factor. The long-term impact remains unclear for now. However, the growth outlook for the magnetic materials industry remains optimistic. For instance, the annual compound growth rate of China's NEV demand for NdFeB permanent magnets is expected to reach 41%, with NdFeB permanent magnet production in China growing by 8-10% annually, and demand for NdFeB permanent magnets in China's variable frequency air conditioners increasing by 10-15% annually. Therefore, as long as there is no complete substitution of gallium in the magnetic materials industry, demand for gallium metal is expected to remain relatively stable. The same applies to the PV industry. Looking ahead to 2025, after a year of supply and demand adjustments, gallium prices are expected to operate within a short-term range of 1,900-2,300 yuan/kg. Issues Worth Noting 1. The greatest uncertainty still lies in changes in exports (application time for export qualifications, approval conditions, and other unknown factors), as well as the development speed of the semiconductor industry, which could impact both domestic and export prices. 2. The future development trends of the domestic semiconductor optoelectronics industry, including chip R&D, lithography machine manufacturing, and other currently popular sectors. 3. Whether the traditional stockpiling peak season for the semiconductor and magnetic materials industries will arrive as expected before and after the Chinese New Year holiday.

【Rio Tinto and US Company Collaborate to Successfully Extract Primary Gallium for First Time, Plan to Advance Commercial Production】① Rio Tinto announced that, in collaboration with US-based Indium Corporation, it has successfully extracted primary gallium metal for the first time, with both parties committed to achieving commercial production of this critical rare metal in the future; ② If Rio Tinto successfully achieves commercial-scale gallium production at its refinery in Quebec, Canada, it is expected to reach an annual production capacity of 40 mt, equivalent to approximately 5% to 10% of the current global total production. (Financial Associated Press)

[Rio Tinto Extracts First Primary Gallium at Quebec Refinery] Rio Tinto, in partnership with Indium Corporation, has successfully extracted its first batch of primary gallium at the Vaudreuil alumina refinery in Quebec—Canada's sole alumina refinery. This marks a key strategic step toward producing critical minerals domestically, especially in the context of China’s December 2024 export ban on gallium, germanium, and antimony to the U.S. Gallium, essential for semiconductors and high-performance electronics, is currently produced entirely outside North America, with a global annual supply of just 600 metric tonnes. The initial extraction was performed at Indium's R&D facility in New York, and both companies plan to scale up to pilot production. If successful, a demonstration plant in Quebec with a 3.5-tonne annual capacity will follow, backed by government support. A full-scale plant with a 40-tonne annual capacity—5–10% of global supply—is also under consideration. This development supports North American efforts to secure critical mineral supply chains amid growing geopolitical tensions.

Gallium, denoted by the chemical symbol Ga, is a fascinating element with unique physical and chemical properties. This silvery-blue metal is known for its unusually low melting point of 29.76 °C (85.57 °F), which allows it to become liquid at just above room temperature. Unlike many other metals, gallium does not occur in a free form in nature; instead, it is extracted from bauxite and zinc ores. Chemically, gallium is less reactive than aluminum and indium, and it can form a protective oxide layer on its surface when exposed to air, which makes it relatively stable.

Driven by the favorable policies from the Two Sessions, market demand for artificial intelligence, consumer electronics, NEVs, and other sectors is expected to grow. Additionally, the market's favor for high-growth tech companies has provided further positive momentum. The gallium nitride (GaN) concept saw a strong opening on March 6. As of 10:09 AM on March 6, the GaN concept index had risen by 2.1%. In terms of individual stocks, Jingquanhua and Aohai Technology hit the daily limit, while North Huachuang, Aglare Technology, and H&T ranked among the top gainers. On the news front, this year's government work report proposed fostering and expanding emerging and future industries, advancing the integrated cluster development of strategic emerging industries, and launching large-scale demonstration actions for new technologies, products, and scenarios. It also emphasized promoting the safe and healthy development of emerging industries such as commercial aerospace and the low-altitude economy, establishing a growth mechanism for future industry investments, and nurturing future industries like bio-manufacturing, quantum technology, embodied intelligence, and 6G.

SMM July 14th News: According to unofficial market feedback obtained by SMM, it is reported that Sanmenxia Aluminum Co., Ltd. recently successfully concluded a public auction sale of approximately 1 ton of 4N gallium from its inventory.