Gallium Prices Rise to $1,600 Per Kilogram in European and American Markets

According to data from the British research firm Argus Media, as of January 22, the benchmark price of gallium in European and American markets was $1,600 per kilogram, a 16% increase since the beginning of the year, marking the highest price since 2002 when comparable data became available.

Gallium is a rare metal used in semiconductors and light-emitting diodes (LEDs). Especially in the semiconductor field, it holds promise for achieving higher speeds and energy savings than silicon, the previous primary raw material, making it a key material. Gallium-based power semiconductors are crucial for controlling motors in electric vehicles.

Data from the U.S. Geological Survey (USGS) shows that global gallium production in 2024 was 760 tons, with 99% controlled by China. According to Chinese customs data, nearly 60% of gallium exports in 2025 will go to Japan.

Following Japanese Prime Minister Sanae Takaichi’s parliamentary response regarding a potential “Taiwan crisis,” the Chinese government announced on January 6 that it would strengthen export controls on dual-use items to Japan. Gallium will also be included in similar measures implemented against the United States in December 2024. This is because gallium is also used in military radar.

Wakatsu Yukichi of WING (Minato-ku, Tokyo), a Japanese semiconductor trading company specializing in gallium sales, believes that “the possibility of exports to Japan halting again is extremely high.” Toru Okabe, a professor at the University of Tokyo specializing in rare metals, points out: “Although these measures are specifically targeted at Japan, the growing concern about the overall supply of mineral resources, and the idea of ​​securing supply even at high prices, is spreading globally.”

As part of its policy towards the United States, China has already restricted gallium exports, and “inquiries from those who previously couldn’t purchase it are now very strong.”