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.

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.

On Wednesday (May 7) local time, mining giant Rio Tinto announced that it had successfully extracted primary gallium metal for the first time in collaboration with US-based Indium Corporation, with both parties working towards the commercial production of this critical rare metal in the future. Rio Tinto stated that the initial extraction of gallium was carried out at Indium's R&D facility in New York, and the next phase will involve evaluating technologies capable of producing larger quantities of gallium on a pilot scale. If Rio Tinto successfully achieves commercial-scale production of gallium at its refinery in Quebec, Canada, the estimated annual production capacity is expected to reach 40 mt, accounting for approximately 5% to 10% of the current global total production. "Rio Tinto and Indium Corporation are committed to enhancing the resilience of the North American gallium metal supply chain," said Jérôme Pécresse, CEO of Rio Tinto Aluminium, in a statement. Gallium is a rare metal widely used in the manufacturing of semiconductors, smartphones, and EVs. In December last year, China announced a ban on the export of critical metals, including gallium, to the US, in response to the US's chip control measures against China. China is the world's largest producer of antimony, germanium, and gallium, with these rare metals playing a crucial role in clean energy, chip manufacturing, and defense, among other sectors. Gallium, germanium, and antimony are all among the 50 critical minerals identified by the U.S. Geological Survey (USGS). Data shows that from 2019 to 2022, the US imported nearly all of its gallium and about half of its germanium. China was one of the primary sources of these minerals for the US. In December last year, Rio Tinto announced that it was considering gallium production in Canada and planned to build a demonstration plant with an annual production capacity of 3.5 mt. The Quebec provincial government pledged to provide CAD 7 million (approximately USD 4.9 million) in funding support for this demonstration plant. According to Rio Tinto, these gallium products will be derived from bauxite processed at its alumina refinery in the Saguenay–Lac-Saint-Jean region.

【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)

47 Strategic Raw Material Projects Just Announced! EU Official Takes Action: First, Gallium... After the EU unveiled a highly anticipated list of 47 strategic raw material projects this week, a senior EU official overseeing the strategy visited a strategic metal base in central Greece on Thursday. It is reported that Stéphane Séjourné, Executive Vice President of the European Commission responsible for industrial strategy, visited an aluminum plant that is expected to start gallium extraction operations that day. (Cailian Press)

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.

[SMM Flash: US's Supra to Launch Gallium and Scandium Recovery Project] US technology company Supra Elemental Recovery has successfully raised $2 million and officially launched its proprietary reusable "sponge-like" filter cartridge technology. This technology is capable of recovering gallium and scandium from industrial by-products, mine tailings, and electronic waste. Supra stated that the raised funds will be used to advance the further development of the recovery technology, fully preparing for a commercial pilot project in 2026. Additionally, Supra is currently testing technologies to recover high-purity critical minerals from other materials, including cobalt, lithium, and some rare earth elements. Currently, due to export controls implemented by China, Western countries face constraints in terms of supply for gallium, scandium, and other rare earth elements.

【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)

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.