Chemically, gallium is similar to aluminum and is a by-product of zinc and aluminum mining in limited quantities. The availability is limited and dependent on the mining of ores, which is why significant supply bottlenecks are assumed for gallium. In addition, gallium alloys can replace mercury as an environmentally friendly thermometer liquid, because gallium alloys even melt below the freezing point of water. “When the chemist Paul Emile Lecoq de Boisbaudran made a groundbreaking discovery with gallium in 1875, he could not have known that more than 100 years later technical innovations would be unthinkable without his discovery of the light blue shimmering metal with its strangely contradictory properties,” explains Heinz Muser appreciative.
Areas of application of the technology metal
The mine containing the highest percentage of gallium was discovered in South West Africa in the late 1950s. Here, too, it has entered into a connection with the metal aluminum. In the meantime, there are also some profitable mines in China that mine gallium for the world market. The numerous areas of application for gallium include, for example, semiconductor, solar, electronics and LED technologies. Heinz Muser, managing partner of doobloo AG, knows that a veritable gallium boom is expected due to the increasing use of LEDs worldwide and the rapidly growing sales of solar systems and mobile high-tech devices. Many LED bulbs cannot be made without gallium, which is essential to the functioning of most people’s everyday lives. Many car headlights are now equipped with LED lamps, which have a high level of radiance and a long service life. Today, numerous raw materials continue to gain in importance as technology metals for production. Nevertheless, the occurrence of the mostly rare metals is limited, which is not made easier by the competitive world market.
Without technology metals and rare earths there would be no high-tech developments
“Special features on the commodity market of technology metals and rare earths are more diverse than in contrast to gold. Because strategic raw materials are actually consumed,” says Muser. Demand is increasing due to global technical progress, but the availability of strategic raw materials is lower or finite. In particular, the focus is on lithium, cobalt and nickel, which are required for battery production, as well as gallium for solar systems and titanium and tungsten for the space and defense industry,” Heinz Muser points out.
The development of high-tech nations is reinforced on the one hand by the growing world population and above all by the development of many emerging countries into prosperous industrialized countries. The majority of the technology metals and rare earths come from China and China is currently building up its own strategic raw material reserves, which limits the supply. China is an important player and trendsetter on the world market. According to official statements by the Chinese government, in 2015 it was discussed whether the export of certain metals should be completely banned. This was not implemented. Still, the tariffs are significant for the other participants in the global market as China leverages its dominance in this market.
The European Union is also dependent on imports of critical raw materials from non-EU countries. For example, 63 percent of the cobalt used for batteries comes from the Republic of Congo, 97 percent of magnesium comes from China, 100 percent of the rare earths for permanent magnets come from China, and 98 percent of borate comes from Turkey. Heinz Muser agrees with the EU that increasing global production can only work with international trade and mutually beneficial partnerships with emerging and developing countries. Muser adds that this creates an interesting market around investing in the future with strategic commodities. The founders and makers of doobloo AG have been active in the investment industry with a focus on real assets for over 25 years.
European Critical Raw Materials Act: Strengthening the entire value chain – independence – circular economy – sustainable supply chains
The dependence of the markets on raw materials in particular has made it clear in the last crises how sensitive the global system can react. The European Union has recognized this and, with the Critical Raw Materials Act, is pursuing a green industrial plan with a sustainable supply of raw materials, strengthening domestic supply chains and strengthening the entire value chain. In order to achieve the climate and digital goals in the EU, Europe wants to take care of the extraction, processing and recovery of critical raw materials and secure supply chains on site. Reduced vulnerabilities and greater independence are considered a pillar of the European Green Deal with the goal of sustainable supply chains and circular economy. A key pillar of the European Critical Raw Materials Act is building European capabilities with required on-site exploration, simpler and more predictable permitting processes, and easier access to finance to tighten supply chains and ensure the coordinated build-up of strategic inventories. Certain regions of the world have strategic raw materials and these countries are aware of their important position for the future. Countries with valuable earths and metals, such as China and regions in Africa, are in exchange with important partner alliances. As a reliable partner, the European Union strives to agree contracts to secure access to important technology metals such as gallium and to promote economic development in the long term by building value chains – as a focus on win-win partnerships with non-EU countries.
V.i.S.d.P.:
dr. Peter Riedi
Economist & precious metals expert
The author is responsible for the content
doobloo AG, based in the Principality of Liechtenstein, has specialized in the purchase of strategic metals. She is convinced that every investment portfolio should be expanded to include a tangible asset as a crisis and inflation-proof component. Technology metals and rare earths are urgently needed for almost all high-tech developments in recent years.
Contact
doobloo AG
dr. Peter Riedi
Meierhofstasse 2
FL-9490 Liechtenstein
+423 23 90 117