Gallium's Minor Demand Poses An Outsized Problem

China has paused export restrictions on gallium until November 27, 2026, giving the U.S. time to solve a supply chain problem of this overlooked but vital strategic metal.

Gallium is a minor metal by volume but a major enabler of modern technology. Annual U.S. demand is only about 20 tons, yet without it, entire weapons systems and space platforms cannot be built or maintained. There is no primary domestic production and no federal stockpile. Thus, a sustained shortage would have a domino effect on aerospace and defense suppliers, delaying deliveries and increasing reliance on foreign sources amid growing geopolitical tension.

However, gallium is not a mining problem. The metal is widespread in trace concentrations through materials domestically processed at scale, particularly alumina and zinc. The secret behind China’s dominance in gallium output is not superior geology, but rather policy. Chinese aluminum producers focused on gallium recovery decades ago, turning routine smelting into an advantage. On the other hand, U.S. processors allow gallium to disappear into waste streams.

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Examining The Options

Several publicly listed companies already operate facilities that could change this equation. Trafigura’s Nyrstar zinc smelter in Tennessee, historically linked to publicly traded zinc producers such as Glencore Plc (OTC:GLNCF), has evaluated the recovery of gallium and germanium from jarosite residues. With modest capital investment and policy support, zinc smelters could meet the majority of U.S. gallium demand. Such support could materialize under the future owner, Korea Zinc.

Meanwhile, aluminum refining offers an even faster pathway. Rio Tinto Plc (NYSE:RIO) has already demonstrated gallium recovery at its Vaudreuil alumina refinery in Quebec, with downstream processing steps piloted in New York. 

Although the domestic aluminum refining has significantly declined,  Alcoa Corporation (NYSE:AA) globally processes between 9 and 12 million metric tons of bauxite every year. Bauxite contains small recoverable amounts of gallium, to a tune of 50-60 ppm average. Yet, at such volumes, it would be enough to satisfy the U.S. demand.

The Recycling Alternative

Recycling is another underappreciated lever. Indium Corporation currently upgrades semiconductor scrap into high-purity gallium. Scaling this model could involve partnerships with publicly traded semiconductor manufacturers such as Intel Corporation (NASDAQ:INTC) or Texas Instruments Inc. (NASDAQ:TXN), whose fabrication waste streams already contain recoverable gallium.

Ultimately, the industry will not move without clear incentives. The Department of Energy, the Defense Production Act, and the Defense Logistics Agency are best positioned to de-risk first-of-a-kind recovery circuits through loan guarantees, offtake agreements, and qualification funding.

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