Japanese oil and gas entity, JOGMEC, to collaborate on Gallium production research in Australia
Japan is taking steps to ensure a stable supply of gallium, a critical mineral used in semiconductors, following China's tightened export controls on the mineral in August 2023. The export restrictions led to a significant drop in Japan's gallium imports, with the country's reliance on China for the mineral plummeting from around 60% to just 10%.
In response, Japan has been actively reducing its reliance on Chinese gallium imports. The Japan Organization for Metals and Energy Security (JOGMEC) and Japanese trading house Sojitz Corp. have established a joint venture named Japan Australia Gallium Associates (JAGA). This partnership aims to explore the feasibility of producing gallium in Western Australia, in collaboration with U.S.-based Alcoa's alumina refinery.
The joint study, which is expected to be completed by fiscal 2025, has a target start date for production in calendar 2026. The goal is to produce over 55 tons of gallium annually by 2028, addressing Japan's strategic need to reduce dependence on Chinese gallium and capitalising on growing global demand driven by semiconductors, AI, 5G, renewable energy, and defense applications.
Prior to 2023, Japan consumed 167 tons of gallium, importing about 97 tons, with approximately 55 tons coming from China. The sharp decline in imports since August 2023 has raised concerns over supply security and economic risks due to Chinese dominance in mining, smelting, and refining processes.
Japan's manufacturers have responded by recycling gallium and drawing on inventories while seeking alternative sources. The government and agencies are also accelerating efforts to diversify supply chains and mitigate economic security threats from dependence on China.
This move aligns with broader U.S.-Japan supply chain resilience goals amidst ongoing geopolitical tensions. By partnering with Alcoa in Australia, Japan aims to secure a stable non-Chinese supply source by the mid-2020s.
- In an effort to mitigate economic risks and diversify its sources, the Japanese government, in collaboration with Alcoa's alumina refinery, is exploring the possibility of producing gallium in Australia through the joint venture Japan Australia Gallium Associates (JAGA).
- The aim of this partnership is twofold: to address Japan's strategic need to reduce dependence on Chinese gallium and to capitalize on growing global demand from sectors such as semiconductors, AI, 5G, renewable energy, and defense applications.
