Tungsten and Gallium Rare Metal Prices Reach 14-Year Highs

Rare metal prices are rising. Tungsten, a material used in “superhard tools” (used for machining automotive engines and aircraft parts), has seen a 45% increase in prices since the beginning of the year, while gallium, used in semiconductors, has risen 44%. Both have reached 14-year highs. The price increases are driven by China’s export controls, and Japanese companies are scrambling to address them, such as sourcing from non-Chinese producers.

According to data from the British research firm Argus Media, the spot (immediate contract) price of ammonium paratungstate (APT), a raw material for tungsten products and a price indicator, in Europe was around $477.5 per 10 kilograms as of July 22, up approximately $150 from the beginning of the year. The benchmark price of gallium for the European and American markets was around $827.5 per kilogram as of July 22, up approximately $250 from the beginning of the year.

Looking back, the price spikes for tungsten and gallium occurred around 2011. At the time, China tightened rare earth export controls to Japan due to the 2010 collision with a Chinese fishing boat. Exports of other rare metals also decreased, leading to a sharp rise in international prices. This price increase is also influenced by China’s export controls.

China will tighten export controls on key minerals starting in 2023, with tungsten becoming a target from February 2025. Chinese customs data show that exports of ammonium paratungstate (APT), a raw material, were zero from March to May.

Yusuke Takiishi of Advanced Material Japan (Chiyoda-ku, Tokyo) stated that rising tungsten prices have forced Japanese companies to purchase at higher prices from other producing countries, such as Vietnam.

Gallium became subject to Chinese export controls starting in August 2023, with exports falling to zero in May 2025. Exports did not fully recover in June. Manufacturers of semiconductor components using gallium say they are managing with inventory and are “unaffected for now.” They also stated that they are considering ways to source gallium independently of China, heightening their vigilance.

China controls 60% of global production of antimony, used in flame retardants. Antimony has been subject to Chinese export controls since September 2024. Although exports have shown signs of recovery since the end of 2024, supply has recently shrunk again, falling by over 90% year-on-year in June 2025.

China’s tightening export controls stem from the US-China trade war over tariffs. In April 2025, China placed rare earths, an essential component of pure electric vehicle (EV) components, under export controls as a countermeasure against the US. Yoshikiyo Shimamine, a senior researcher at Dai-ichi Life Research Institute, stated, “It’s natural to assume that export controls on critical minerals other than rare earths will be tightened again as retaliation against the US.”

Following the June US-China ministerial consultations, China is expected to ease rare earth export controls. Some believe that export controls on critical minerals other than rare earths will also be gradually relaxed. However, given the ongoing tensions with the US, there’s an undeniable risk that China will once again use export controls as a bargaining chip.

When China implemented rare earth export controls on Japan in 2010, Japanese companies adopted measures such as changing production methods and increasing recycling rates, indicating a trend toward reducing their reliance on China in rare earths and other areas. However, China maintains an advantage in mining and refining costs, maintaining a dominant position in key minerals.

To reduce business risks for Japanese companies, Japan must break free from its reliance on China for key minerals. From a security perspective, Japan needs to collaborate with government and businesses to secure alternatives, such as acquiring key minerals located on the seabed within Japan’s exclusive economic zone (EEZ) and strengthening its mineral reserves.