The country said it could also further restrict the sale of graphite, which is the bulk of the negative electrode material in lithium-ion batteries used in electric cars, power grid energy storage plants and household appliances.
What does a ban do?
Experts say that in most cases, the ban will not have a significant economic impact. Part of the reason is that China already restricted exports of these minerals several months ago, and that these minerals are primarily used in niche categories within the semiconductor industry. U.S. imports of these materials from China are already declining as U.S. companies find new sources and substitutes for the materials.
However, a recent U.S. Geological Survey study found that a complete ban on gallium and germanium by China could reduce U.S. gross domestic product by $3.4 billion. Additionally, they “touch on many forms of security, including economics, energy, and defense,” making them documents that are sure to be of interest to U.S. politicians, Bhaskaran said.
For example, antimony is used in “armour-piercing ammunition, night-vision goggles, infrared sensors, bullets, and precision optical equipment,” Bhaskaran and colleagues noted in a recent essay.
Companies use gallium to make a variety of military and electronic components, including high-power chips used in satellite systems, power converters, LEDs, and electric vehicles. Germanium is used in fiber optics, infrared optics, and solar cells.
Before China restricted the flow of these materials, China accounted for more than half of U.S. imports of gallium and germanium, according to the U.S. Geological Survey. China and Russia together control 50% of the world’s antimony reserves.
How will it impact climate change technology?
Tighter regulations on graphite could have a significant economic impact on U.S. battery and electric vehicle makers, in part because there are very few other sources of graphite. According to the International Energy Agency, China controls about 80% of graphite production from mines and processes about 70% of the raw material.
“This will be very important for batteries,” says Seaver Wang, co-director of the Breakthrough Institute’s climate and energy team. The institute’s research focuses on minerals and manufacturing supply chains. “By weight, we need far more graphite per terawatt-hour than nickel, cobalt, or lithium. And there is virtually no production activity in the United States.”