China’s critical minerals ban: A new front in USA-China trade conflict

Gallium is primarily sourced as a byproduct of mining and refining other metals, especially bauxite, although some gallium is also derived from the processing of sphalerite ore for zinc. Germanium largely occurs as a geochemical substitute in various sulfide minerals, primarily in the mineral sphalerite (ZnS), with minor inclusion in silicate minerals. Stibnite (Sb₂S₃) is the predominant ore mineral of antimony. The most important use of antimony metal is as a hardener in lead for storage batteries.

Gallium and germanium play a crucial role in semiconductor manufacturing, with germanium also being essential for infrared technology, fibre optic cables, and solar cells. Meanwhile, antimony is a key component in ammunition and weaponry, while graphite, due to its high energy density and conductivity, constitutes the largest volume component in electric vehicle batteries.

The Chinese Ministry of Commerce cited national security concerns as the primary reason for the ban, underscoring the dual-use nature of these minerals, which have both military and civilian applications. Gallium, germanium, and antimony are essential in advanced technologies, including military equipment, communications, and renewable energy, making the move a strategic blow to U.S. industries reliant on these imports.

The ministry stated, “In principle, the export of gallium, germanium, antimony and superhard materials to the United States shall not be permitted.”

This latest directive builds upon export restrictions introduced last year but narrows its focus exclusively to the U.S. market. In addition to the mineral export ban, Beijing has also mandated stricter oversight on the export of graphite items to the U.S., further tightening controls over resources crucial to high-tech manufacturing.