The current price of Gallium is $798.40 per kg.

Please note that the price provided is the retail price for private investors and is aligned with industry retail pricing. For bulk purchases, whether investment or industry, please contact us directly for a quotation.

 

Table: Gallium Historical Prices and Price Changes

DateGallium PriceChange % to TodayAnnual Change %
Apr 24 2024$798.40 / kg
Jan 1 2024$755.80 / kg+5.64%
Jan 1 2023$640.80 / kg+24.59%+17.95%
Jan 1 2022$648.80 / kg+23.06%-1.23%
Jan 1 2021$422.70 / kg+88.88%+53.49%
Jan 1 2020$298.20 / kg+167.74%+41.75%
Jan 1 2019$355.85 / kg+124.36%-16.20%
Jan 1 2018$274.37 / kg+190.99%+29.70%

 

Gallium Historical Price Movement

At today’s price of $798.40 per kg, gallium changed +5.64% since Jan 1st 2024, and +24.59% since the start of last year. It is up +88.88% compared to its price of $422.70 per kg on Jan 1st 2021 and increased +167.74% since Jan 1st 2020 (in comparison, the S&P 500 is up +53.80% over the same period). If we go back to Jan 1st 2018, when the cost of gallium was $274.37 per kg, then the increase is +190.99%.

The price of gallium has been volatile in recent years due to fluctuations in supply and demand. In 2020, the cost of gallium surged due to a shortage of bauxite, the primary raw material used to produce gallium. The shortage was caused by a combination of the Covid-19 pandemic and delays in mining operations and inspections in China, the world’s largest producer of gallium.

As a result of the price increase, many companies that use gallium had to cut back on production or find alternative sources of supply. The price increases were a major factor in the slowdown of the global economy in 2020. Last year’s price increase was caused by China effectively banning the export of this strategic metal to the West in August 2023 (more on this in the forecast section below).

To make an educated forecast on the price of gallium, let’s take a closer look at the uses of gallium, its production, and the key factors that will drive the cost of gallium in the future (jump to our forecast).

 

Gallium Uses

Gallium

Gallium

Gallium is a chemical element with the symbol Ga and atomic number 31. Gallium is a soft, silvery metal, and Elemental gallium is a liquid at temperatures greater than 29.76C (85.57F) (slightly above room temperature). 

Solid gallium alloys are used in optics, electronics, and nuclear engineering because of their non-toxicity and resistance to neutron radiation and beta decay. 

In addition, gallium is used in alloys with other metals such as aluminum, copper, and tin to create gallium arsenide (GaAs). This is used in semiconductor fabrication, one of gallium’s most important uses. It provides a critical component in multiple steps of the manufacturing process for computer chips and other electronic devices.

Gallium nitride (GaN) is another important compound of gallium that has applications in light-emitting diodes (LEDs), laser diodes, power amplifiers, and solar cells.

Where is Gallium Produced?

Gallium isn’t found in nature in its pure form, but it’s obtained as a by-product of aluminum and zinc production. The top 3 producers of raw gallium are China, Germany, and Kazachstan, but … China produces more than 95%!!!

China monopoly in rare earths

What Factors Determine the Price of Gallium?

In metals, supply and demand is always in charge, and the price of Gallium is determined purely by the market.

The demand for gallium is driven by the need for the final products that use this strategic metal. As noted above, gallium has various vital uses, such as in solar panels, computer chips, and TVs. So, increased solar panel sales would lead to increased gallium demand. 

The high scarcity of gallium is a crucial factor that determines the asking price. As China dominates the production of gallium, geopolitical events and export quotas also impact gallium supply. 

By understanding how the supply and demand of this rare metal work, we can better understand where gallium prices are headed.

Gallium Price Forecast

As our dependence on technology continues to grow, the demand for gallium will continue to increase. Many popular and vital products already use this critical metal. At the same time, new technologies keep getting developed that require gallium, such as 5G cellular technology which uses gallium arsenide chipsets. These are energy-efficient and produce little heat meaning 5G base stations don’t need as much power or air conditioning as silicon chipsets.

As the semiconductor industry shifts from silicon to gallium, China and its chipmaker Huawei are preparing to take the lead position. They aim to dominate the market in products made with gallium-based chips for years to come. Huawei has already filed for 2,000 patents related to gallium, which is more than any other company.

In addition to its use in 5G base station chipsets, gallium nitride is used in military radar, lasers, and satellites. This makes it one of 35 elements the US government, alongside Europe, calls a national security concern. With China so heavily controlling production (95%), there are growing concerns about how US and EU based companies will gain access to gallium in the coming years.

It is estimated (Source: Fraunhofer Institute) that in Europe alone, by 2030, we will be consuming 7 to 26 times more gallium than we are currently consuming.

For further context let’s look at Austria, a population of 9 million, one of the smaller countries in Europe. According to the Austrian Federal Ministry of Agriculture, Regions and Tourism, Austria will need four and a half times the current global gallium production for the planned expansion to renewable energies.

We already mentioned that with 95%, China dominates the supply. But here’s where it gets even more interesting regarding China. It took them a generation to become the dominant market leader in gallium. While the US, EU, and other nations are now taking action to wean dependence off China, creating sustainable new supply sources will take 10 to 15 years.

More importantly, it’ll take a decade at least to foster the engineering expertise and human capital needed. Since the late 1980s, the human capital and engineering expertise has been depleted, particularly in the US. For context, China has 39 universities graduating with degrees in critical minerals, and the US has only a handful. China has been graduating 200 metallurgists a week every week for the past 30 years, while the US has maybe 200 a year. The industry estimates are that China has 400,000 people working in Rare Earths and technology metals, and the US has 400.

Without question, it will take Europe, the US, and other countries a generation to catch up, if they do at all. In the meantime, we in the West must wait in line for what China will export after they have satisfied their domestic quotas. To add insult to injury, China made good on their “export ban” threats when they stopped exporting gallium (and germanium) to the US, Europe, and Japan in August 2023. This is believed to be a clear reaction to the US’s ban on shipping advanced semiconductor manufacturing equipment into China. The gallium price  increased over 20% in the months following China’s export ban.

Given the importance of gallium to countries’ economies and the supply dependence on China for the foreseeable future, it’s forecast that the price of this rare element will come under even more pressure in the coming months and years … and hence rise substantially over the medium term.

Austrian Federal Ministry explaining 4.5 gallium will be needed for the planned expansion of renewable energies

How to Buy Gallium

Gallium is sold at 99.99 percent purity, priced in USD, and the weight unit is per kilogram. Anyone, such as hobbyists, can buy small amounts of gallium on Amazon, Alibaba, or eBay. However, there is no guarantee of purity and no possibility of liquidation to anyone other than other hobbyists.

Corporate buyers such as LG, Nokia, Qualcomm, and Sony use well-established metal dealers to purchase industry-grade gallium. Reputable metals dealers, such as ourselves, act as key intermediaries between the high-tech industries and the producers of the critical raw materials for these industries.

Any discerning investors who want to benefit from future gallium price raises by buying and owning some gallium can do this through us, Strategic Metals Invest. When you purchase with us, you are purchasing from the only globally licensed industry supplier that offers this option to private investors.

It is also possible to trade gallium futures contracts in the Shanghai Metal Market (SMM).

How to Sell Gallium

Please note that online marketplaces like Amazon, eBay, and Alibaba only attract hobbyists. The only end buyers for your industrial-grade gallium are industry buyers such as Tesla, Apple, Siemens, BMW, Ford, and US-DOD. These buyers will only purchase from reputable industry suppliers with the bona-fides to provide the complete chain of custody.

No industry buyer will entertain a seller without a full chain of custody, analysis reports, purity levels, and proper storage facilities. Only because we are an industry supplier can we guarantee the fast and safe liquidation of the strategic metals of our investors.

All prices on this page last updated Apr 24 2024.