In a geopolitical landscape where supply chains are weaponised, MTM Critical Metals (ASX: MTM) has delivered a game-changing breakthrough in recovering gallium (Ga) and germanium (Ge)—two critical minerals at the heart of the escalating U.S.-China trade war.
Utilising its proprietary Flash Joule Heating (FJH) technology, MTM has successfully extracted ~90% of gallium and ~80% of germanium from semiconductor waste, a feat long considered commercially unviable. The announcement couldn’t come at a better time, as China’s latest export bans send Western economies scrambling for alternative sources.
China’s Trade War and the Critical Metals Squeeze
China, which controls over 95% of global gallium production and 70% of germanium output, has officially banned exports of these metals to the U.S., marking a sharp escalation in its economic standoff with the Trump administration. The move is part of a tit-for-tat trade war, triggered by Washington’s restrictions on advanced semiconductor technologies.
This geopolitical chess match has put Western industries—especially semiconductors, defence, and renewable energy—on high alert. Gallium is essential for next-generation microchips, 5G technology, and military-grade radar systems, and without a stable supply, manufacturers face serious production bottlenecks.
Chairman of the U.S. Congressional Select Committee on the Chinese Communist Party, John Moolenaar, summed up the urgency:
“We cannot allow our supply chains to be at risk like this… The Select Committee will continue to work on ambitious legislative solutions that secure critical minerals for our economy and national security.”
With Chinese gallium and germanium exports to the U.S. having already collapsed to near zero in 2024, companies are now scrambling to secure domestic or alternative sources—and MTM’s breakthrough puts it in prime position to capitalise.
US Congressman John Moolenaar
MTM’s Secret Weapon: A Better Way to Recover Gallium & Germanium
MTM’s FJH technology offers a faster, more efficient, and environmentally friendly way to extract gallium and germanium from waste streams without the use of harsh acids. Traditional methods, including acid leaching and smelting, suffer from low selectivity, often extracting multiple metals in an unusable mix.
By contrast, MTM’s method selectively targets gallium and germanium, making commercial recovery viable where others have failed. The company has access to high-value semiconductor scrap—believed to be from Indium Corporation’s own refining process waste and semiconductor manufacturing clients—containing up to 15% gallium, 18% germanium, and 20% indium.
The Commercial & Strategic Opportunity
MTM’s breakthrough isn’t just a scientific milestone—it’s a potentially lucrative economic and geopolitical windfall. With gallium prices soaring more than 50% in 2024 and China showing no signs of easing its restrictions, the company is perfectly positioned to fill a critical supply gap.
- Indium Corporation’s involvement suggests a fast-tracked path to commercialisation.
- Discussions on supply and offtake agreements are already in motion.
- Production is targeted by late 2025 at 1 tonne per day, with rapid expansion plans beyond that.
Indium’s Markus Roas described MTM’s development as “an industry game-changer”, while CEO Michael Walshehighlighted the urgency of securing non-Chinese sources for these critical materials:
“Ga & Ge are indispensable to semiconductors and defence applications, yet their supply chains remain highly vulnerable. MTM’s proprietary process offers a commercially viable, environmentally friendly solution to secure domestic supplies of these strategic materials, creating a major economic opportunity for the Company.”
Markus Roas
The Bigger Picture: A New Era of Metal Independence?
China’s export controls are widely seen as the first of many steps in an evolving economic conflict with the U.S.. There’s growing concern that Beijing could extend its bans to other critical minerals such as cobalt, nickel, and lithium, creating further disruptions.
The U.S. government and its allies are now racing to establish independent critical mineral supply chains—and MTM has just placed itself at the forefront of this strategic shift.
Investors and industry players will be watching closely. If MTM executes on its plan, it could soon become a major player in securing Western supply chains for gallium and germanium—and a success story on the ASX.
