How China’s new rare element export rules may hurt the global space industry

The chip war has finally caught up with the space industry. Two days ago, Beijing declared that gallium, a unique material used in several spacecraft technologies, will require “special permission from the state” to export. The move is an apparent retaliation against the U.S. and some European nations imposing limits on semiconductor sales to China.

Roughly 80% of the world’s gallium comes from China, per figures from the Brussels-based Critical Raw Materials Alliance. Gallium is often used as a part of the core substrate for semiconductors, making it critical for myriad devices. The space industry uses derivations of the material (typically gallium arsenide or gallium nitride) in solar arrays, power amplifiers, signal converters, transceivers and other components that enable satellites and ground stations to function.

It took until this year for the satellite industry to shake off most of the supply chain and inflation headwinds that trailed covid. The Quilty Space team will be monitoring industry activity to gauge the impact of these new gallium restrictions, which could easily result in higher satellite manufacturing costs worldwide.

SOURCE: https://www.cnn.com/2023/07/03/business/germanium-gallium-china-export-restrictions/index.html