Why Gallium is Important and Which Stocks Are in It

Did you know that there are ASX explorers searching for Gallium? Did you even know this element existed? It is a multifaceted and highly precious element that is gaining precedence as a critical material of modern technology.

It is necessary for semiconductors and LEDs, solar panels, and many other applications due to its singular properties. It may not seem like it, given not many ASX explorers are prospecting for it. But some are…

Why Gallium is Important

Gallium is crucial for making sophisticated semiconductors, including gallium arsenide (GaAs) for high-frequency applications, such as RF electronics, and gallium nitride (GaN) for power electronics. Thermal stability, with a conversion efficiency of electricity into light, places it at the forefront in applications for LEDs, solar cells, and 5G technology. Furthermore, gallium is crucial for high-technology applications like medical imaging and quantum computing.

China dominates the world’s refining market, holding more than 90% of production. The rising geopolitical tensions have forced countries to look for alternative sources and routes of production, opening doors for companies to engage in extraction and processing, or to develop potential deposits.

Now this is true for many metals, and you could say ‘just recycle old metals’ or just ‘mine more’. This is a possible solution for some minerals…but not gallium. You see, there are so few deposits for this commodity to begin with, although of course this means those companies with deposits have a lucrative opportunity. More on them on a moment.

But also, the bulk of the world’s supply comes from recycling semiconductor wafers, but as they get smaller and smaller, so do the quantities of gallium. A Nature Communications paper in 2022 declared that gallium is ‘almost never functionally recycled’ once it reaches final products. So any companies that find a resource could realise significant value. Unlike other metals, companies need not find a monster deposit to be economically viable – given the shortage, beggars cannot be choosers.

Companies Engaged in Gallium Production

Battery Age Minerals (ASX: BM8)

Battery Age Minerals has made great progress in the exploration and development its Bleiberg project in Austria. High grades of gallium were discovered at Bleiberg, positioning the company well. It is important to note the company has not tested whether or not a resource is recoverable, notwithstanding that it has estimated there is 90-110ppm. The company’s has a greater focus on germanium, and appropriately so as the mine had a 700-year life and was one of the world’s largest germanium mines.

Bayan Mining and Minerals (ASX: BMM)

Bayan Mining and Minerals (formerly known as Balkan Mining and Minerals) focuses on lithium but has recently started exploring gallium at its projects in Canada. It reported gallium oxide grades up to 72.32g/t, with several samples showing concentrations exceeding 50g/t. Good lithium oxide grades were reported too, with the highest grade coming in at 6.85% and multiple samples exceeding 3%.

Golden Deeps (ASX: GED)

Golden Deeps is a mineral exploration company operating in Namibia and Australia. The company has been known for its focus on vanadium and base metals, but it is increasingly looking at gallium extraction because of its potential as a byproduct in its processing streams.

The Namibian operations of the company are strategically located in resource-rich areas, and its ability to diversify into other materials may add significant value to its portfolio. The company is finding ways to extract other materials in an efficient manner while expanding its operations in one of Africa’s most resource-rich regions.

The opportunity

Companies that are able to extract gallium efficiently as a byproduct and can easily integrate it into their operations have an edge. Technical expertise to recover gallium also forms a barrier to entry and thus helps established players.

Why Investors Should Pay Attention

Given gallium’s important role in high-value, advanced semiconductors, LEDs, and renewable energy systems; there is a need for sources. Companies like Battery Age Minerals (BM8) and Bayan Mining and Minerals (BMM) are good examples of emerging players with prospects in gallium exploration. Don’t expect them to become major miners anytime soon, but they could generate some buzz in the market.

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FAQs

• What is gallium, and why is it important?

  Gallium is a soft, silvery metal critical in high-tech applications like semiconductors, solar panels, and LEDs. Its unique properties, such as high thermal conductivity and compatibility with other materials, make it indispensable in electronics and green energy technologies.

• Which companies on the ASX are focused on gallium production?

  Prominent ASX-listed companies involved in gallium exploration include Battery Age Minerals (BM8), and Balkan Mining and Minerals (BMM).

• How does gallium fit into the renewable energy and tech industries?

  Gallium is used in photovoltaic cells for solar energy, LED lighting, and high-speed transistors in 5G technology. Its role in these industries makes it a key material for advancing renewable energy and connectivity solutions.

• What challenges exist in the gallium market?

  The gallium market faces challenges like limited natural availability, high extraction costs, and geopolitical dependencies on key producers. However, rising demand from clean energy and electronics sectors offers significant growth opportunities.

• Why should investors pay attention to gallium-focused companies?

  Gallium’s increasing demand, driven by renewable energy and semiconductor industries, creates a lucrative market. Companies with gallium extraction capabilities, like ASM and Alkane Resources, are positioned to benefit from this trend, making them attractive to investors seeking exposure to critical materials.