The Chinese Commerce Ministry announced the move after the Washington expanded its list of Chinese companies subject to export controls on computer chip-making equipment, software and high-bandwidth memory chips. Such chips are needed for advanced applications.
The U.S. gets about half its supply of both gallium and germanium metals directly from China, according to the U.S. Geological Survey. China exported about 23 metric tons (25 tons) of gallium in 2022 and produces about 600 metric tons (660 tons) of germanium per year.
The U.S. has deposits of such minerals but has not been mining them, though someprojects underwayare exploring ways to tap those resources.
The export restrictions have had a mixed impact on prices for those critical minerals, with the price of antimony more than doubling this year to over $25,000 per ton. Prices for gallium, germanium and graphite also have mostly risen.
The minerals are used in computer chips, cars and other products
China said inJuly 2023it would require exporters to apply for licenses to send to the U.S. the strategically important materials such as gallium and germanium. In August, the Chinese Commerce Ministry said it would restrict exports ofantimony, which is used in a wide range of products from batteries to weapons, and impose tighter controls on exports of graphite.
Such minerals are considered critical for national security.
China is a major producer of antimony, which is used in flame retardants, batteries, night-vision goggles and nuclear weapon production, according to a 2021 U.S. International Trade Commission report.
The limits announced by Beijing on Tuesday also include exports of super-hard materials, such as diamonds and other synthetic materials that are not compressible and extremely dense. They are used in many industrial areas such as cutting tools, disc brakes and protective coatings.
The licensing requirements that China announced in August also covered smelting and separation technology and machinery and other items related to such super-hard materials.
China is the biggest global source of gallium and germanium, which are produced in small amounts but are needed to make computer chips for mobile phones, cars and other products, as well as solar panels and military technology.
