Automakers are facing a difficult decision due to the potential implementation of export controls on the rare metal called gallium by China. This situation raises concerns about their continued reliance on a metal that was previously considered a revolutionary component for electric vehicles. Gallium currently finds extensive use in various applications, ranging from LEDs to compact mobile phone adapters. While most people may not be familiar with it, pure gallium has the unique property of melting in one’s hand. However, combined with other metals, it has gained significant importance in the semiconductor industry because it’ s a great conductor of electricity and heat without getting hotter and hotter.
According to the European industry association Critical Raw Materials Alliance (CRMA), approximately 80% of gallium is currently produced in China. Recently, China made the decision to impose export controls on gallium, as well as another semiconductor material, germanium, starting from the following month (August 2023). This move has led experts in the mineral field to suggest that automakers may need to reconsider the cost – effectiveness of relying on gallium. Gallium is not so easy to be replaced, especially now that the automotive industry is still in the process of recovering from a global semiconductor shortage caused by the COVID-19 pandemic. This shortage had forced automakers to halt production of certain vehicle models and, in some cases, had resulted in unfinished vehicles being stored while waiting for a single chip to be available.
