Loading ...China restrictions on rare earths has caused pricing to double over the past year — critical elements are used in processors, solar cells, and more
After China imposed export restrictions on germanium and gallium last year, it significantly disrupted global supply chains and caused a rather dramatic price surge. The price hikes amid lack of serious competition to Chinese suppliers are now raising concerns about future shortages.
Beginning on August 1, 2023, Chinese and foreign companies must obtain an export license to ship gallium and germanium metals, as well as any products containing these materials, citing national security concerns. Many see China’s move as a response to U.S. restrictions imposed on China’s semiconductor, AI, and supercomputing sectors. Each shipment of these materials from China requires government approval, a process that can take between 30 to 80 days. This bureaucratic hurdle adds significant uncertainty to the market, making long-term supply contracts difficult to secure and increasing stress on businesses dependent on these materials.
In addition to germanium and gallium, China has recently extended export restrictions to other materials like antimony.