The Economics of Germanium and Gallium

Germanium is produced primarily as a by product from zinc concentrates. The important sources of gallium are alumina ores (bauxites) and zinc concentrates and residues from zinc processing. In addition, gallium as well as germanium may soon be recovered from a depleted copper mine near St. George, Utah. The major uses for germanium are in semiconductors, lenses in infrared optical systems, catalysts, and gamma radiation detectors. The major markets for gallium are in light-emitting diodes, solar cells, laser diodes, integrated circuits, microwave devices, and magnetic bubble memories. CRA projects a healthy growth in the demand for both metals. However, the role of scrap metal will continue to be important over the next decade, thus decreasing the overall demand for primary gallium and primary germanium. This paper summarizes the key elements and the economics of the markets for germanium and gallium. Much of the information, such as plant-by-plant costs of production and estimates of consumption by end use for various countries is from proprietary databases of Charles River Associates.