Key Facts
• Japan and the US to establish gallium production facilities in Australia by 2026.
• Gallium is critical for semiconductors, EVs, LEDs, and radar systems.
• China controls 96% of global gallium production, tightening export controls in August 2023.
• Japan’s 2021 gallium usage: 167 tons, with 97 tons imported, 55 tons from China.
• Post-2023 export restrictions, Japan’s gallium imports from China dropped 80–90% to 10 tons.
• Joint venture includes Japan’s Sojitz, US-based Alcoa, and Japan Oil, Gas and Metals National Corporation (JOGMEC).
• Target production: 55+ tons annually by 2028, matching Japan’s current imports from China.
• Gallium is extracted as a byproduct of aluminum refining, leveraging Alcoa’s existing facilities.
• China’s export restrictions are seen as a response to US-Japan-EU semiconductor export controls.
• The initiative aims to reduce reliance on China and strengthen economic security.
Summary
Japan and the US are collaborating to establish gallium production facilities in Australia by 2026, aiming to reduce reliance on China, which controls 96% of global gallium production. Gallium is essential for semiconductors, electric vehicles, LEDs, and radar systems. China’s tightened export controls in August 2023 have significantly reduced Japan’s imports, dropping from 55 tons to around 10 tons annually. The joint venture, involving Sojitz, Alcoa, and JOGMEC, plans to produce over 55 tons annually by 2028, matching Japan’s current imports from China. This initiative is part of broader efforts to diversify supply chains and enhance economic security amid US-China trade tensions.
