Flexibility and Foresight: Strategies for Procurement of Minor Metals

Procuring many minor metals can be challenging in light of growing demand and uncertainties stemming from China’s recent export controls on some of the raw materials, also known as technology metals. Two international trade events in China and Singapore address this issue.

Frankfurt am Main, 11 April 2024 – Gallium, germanium, and indium may be known as “minor” metals, but their importance in industry and everyday life is major. The metals are essential in numerous high-tech applications, from electronics and renewable energies to medical devices. Gallium is primarily used in the manufacture of LEDs and solar cells, while germanium is indispensable in fiber optic cables and as a semiconductor in electronic devices. Indium is used in touchscreens and flat screens and also plays a role in photovoltaics. As these technologies become more pervasive in modern life, demand for the so-called “minor” metals is growing.

China’s Export Controls and the Uncertain Supply of Minor Metals

The supply situation for many minor metals is in flux. China is one of the most important — if not the most important — producer of these metals. However, the country’s recent export controls on raw materials such as gallium and germanium have led to considerable market upheaval, including supply bottlenecks and price increases.

The introduction of the EU’s Critical Raw Materials Act — legislation that applies to metals such as gallium and germanium — should be viewed in this context. The Act aims to mandate the domestic extraction and processing of 17 strategic raw materials, including many minor metals. The EU initiative is also intended to help reduce dependence on imports from non-EU countries rich in raw materials.

Solutions for a Secure Raw Materials Supply

Until the Critical Raw Materials Act takes effect, companies must respond individually to the sometimes-uncertain supply situation. A review of purchasing and warehousing strategies could help mitigate strategic raw material supply shortfalls in the short and medium terms and ensure production continuity. Although storage space and warehousing tie up capital, investments in these areas can make more economic sense than risking a production standstill due to a lack of materials. It’s crucial to react flexibly to changes in the supply situation.

TRADIUM supplies the entire range of minor metal raw materials. In cooperation with partner companies, TRADIUM also stores large quantities of selected technology metals in a high-security warehouse in Frankfurt that can serve all of Europe.

Two International Trade Events on Minor Metals Discuss Raw Materials Issues

The In Bi Ge Ga Forum by Asian Metal took place in Ningbo, China, on March 28 and 29. As its name suggests, this annual specialist conference focusses exclusively on the minor metals indium, bismuth, germanium, and gallium. TRADIUM has longstanding relationships with many Chinese raw material producers and is the exclusive representative for some of them in Europe. Participation in the forum enables TRADIUM to maintain and expand these contacts.

Another major industry event on the horizon Minor Metals Trade Association Conference. It’s dedicated to the discussion of current developments, challenges, and solutions in this market segment. Experts from the raw materials industry will come together at this important industry gathering in Singapore from April 17 to 19. As it does every year, TRADIUM will attend to exchange ideas with partners and discover what is happening in the raw materials market.