HOUSTON, March 2 (Argus) - The Canadian government's department, Natural Resources Canada, announced on Monday that it has conditionally approved a grant of nearly 19 million Canadian dollars (13.8 million US dollars) to the Anglo-Australian mining and metals company Rio Tinto for the construction of a pilot plant for extracting native gallium at its Jonquière plant in Quebec.
Rio Tinto noted, "The plan is underway," and a demonstration plant will be established at this location with a production capacity of up to 4 metric tons per year. It is expected to start operations in 2027.
The company, in collaboration with its US subsidiary Inco, extracted metallic gallium from the alumina refining process for the first time in May 2025.
This funding was approved under the Global Partnership Initiative and is another commitment by the Quebec provincial government following a 7 million Canadian dollar grant in December 2024.
Gallium is used in power electronics, integrated circuits, light-emitting diodes, and solar cells. Gallium arsenide and gallium nitride-based semiconductors are also used in military radar arrays, precision-guided weapons, and communications, among other applications.
China imposed export controls on gallium in August 2023, requiring exporters to apply for licenses and disclose information on their end-users. After that, supply outside China suffered a severe shortage.
According to estimates by the US Geological Survey, China produces 99% of the world's native gallium, approximately 990 tons.
Argus recently evaluated the price of 99.99% of gallium in Europe, with a CIF price of $1,700 - $1,850 per kilogram, having risen more than fivefold since August 1, 2023.
