Gallium

• Azimut’s lithium exploration work currently focuses on eight (8) extensive properties totalling 5,976 claims over 3,094.1 km2 ( see Figure 1 ).
• Quebec is well positioned to play a key role in the green energy transition, with strong support from the provincial government.
• New lithium mines in Quebec are expected to become a major feedstock source for the processing industry.
• At the current early stage of regional lithium exploration, numerous targets still need to be validated in the field.

• In IDTechEx's recent report " AI Chips 2023-2033 ", the market research company highlights the part that artificial intelligence (AI) plays in this trade war, where the race for AI supremacy has become a national concern.
• With regards to geographic risk exposure, since 2020, there has been a global chip shortage, where demand for semiconductor chips has exceeded supply.
• IDTechEx forecasts that the global AI chips market will grow to US$257.6 billion by 2033.
• IDTechEx's latest report, "AI Chips 2023-2033", answers the major questions, challenges and opportunities faced by the AI chip value chain.

• The statement can be attributed to Wolfspeed spokesperson Melinda Walker.
• “Following an internal review, the company has confirmed that its supply chain will not be impacted by the proposed export restrictions on gallium and germanium.
• Wolfspeed strives to manage its supply chain with our supply partners through principles such as quality, availability, social responsibility, and cost.
• We appreciate that global events can lead to dynamic market conditions that will require us to periodically review our supply chain, and we will continue to do so to ensure Wolfspeed’s needs are fulfilled.”

• From August, China is to restrict exports of gallium and germanium, two critical elements for making semiconductor chips.
• With China dominating the supply of both elements, exporters will now need special licences to get them out of the country.

The importance of gallium and germanium

• But germanium and gallium have specific properties that are hard to replicate and lend themselves to certain niche applications.
• As for gallium, 95% of it is used in a material called gallium arsenide, which is used in semiconductors with higher performance and lower power-consumption applications than silicon.
• Both gallium and germanium are on the European Union and US lists of critical elements.
• The UK considers gallium to be critical to its manufacturing interests, though sees germanium as less important.

Where they come from

• The element is derived in two main ways, as a by-product of zinc production and from coal.
• These respectively account for about 75% and 25% of the total supply.
• Two of the main producers are Russia and Ukraine, and the war has affected supplies to the west from both countries.
• A Nature Communications paper in 2022 noted that gallium is “almost never functionally recycled” once it reaches final products.

The implications

• As it stands, the controls look likely to lead to higher prices for gallium and germanium, as well as longer delivery times.
• This could make it more expensive and difficult for western companies to produce electronic devices, which could in turn lead to higher prices for consumers.
• It could also make it more difficult for western companies to compete with Chinese companies.
• Stockpiles of the elements should help to some extent: the US has said it holds inventory of germanium, though not gallium.