Japanese oil and gas exploration company, JOGMEC, to participate in a study focusing on the production of gallium in Australia.
Japan Pursues Gallium Production in Australia to Secure Critical Semiconductor Supply
Japan, a leading player in the global semiconductor industry, has been actively working to secure a stable and diversified supply of gallium, a critical mineral used in semiconductors. This push gained urgency after China implemented stricter export controls on gallium in 2023, causing Japanese imports from China to drop significantly.
Reducing Dependence on China
In response, the Japan Organization for Metals and Energy Security (JOGMEC) has taken steps to diversify sources of gallium to reduce Japan's reliance on imports from China. In April 2025, JOGMEC, in partnership with trading house Sojitz, established a joint venture called Japan Australia Gallium Associates (JAGA) in Western Australia. This venture collaborates with U.S. company Alcoa to conduct a feasibility study for gallium production at Alcoa’s alumina refinery.
Feasibility Study and Production Plans
The study aims to help Japan reduce its reliance on imports of gallium, particularly from China. The feasibility study is expected to be completed by the end of fiscal 2025, with production planned to commence in calendar 2026. If successful, the project anticipates producing 55 tons or more of gallium annually by 2028, which would roughly match prior Chinese export volumes to Japan.
Strengthening Economic Security and Industrial Competitiveness
By developing domestic and allied-country production capacity, Japan seeks to insulate its critical supply chains from international disputes and supply shocks. This move is part of a broader effort by the Japanese government and related agencies to diversify procurement sources and build resilience against supply disruptions caused by geopolitical tensions with China and the U.S.
Impact on the Semiconductor Industry
The drastic reduction in gallium supply from China has put pressure on Japanese semiconductor and parts manufacturers, forcing greater reliance on metal recycling and inventory drawdowns as immediate coping measures. The initiative to produce gallium in Australia, alongside partnerships with companies like Alcoa, is intended to stabilize long-term supply, easing supply bottlenecks and supporting growing demand driven by AI, advanced electronics, and defense applications.
Overall, Japan's gallium strategy reflects a calculated response to geopolitical risks surrounding critical materials, aiming to sustain its semiconductor industry by reducing reliance on China through international partnerships and new production projects in Australia starting around 2026.
Increasing Diversification in Supply ChainsAs Japan seeks to insulate its critical supply chains from international disputes and supply shocks, the feasibility study for gallium production with Alcoa in Australia is a significant step towards bolstering the country's finance-dependent energy sector and business operations.
Strengthening Industry CompetitivenessBy establishing domestic and allied-country production capacity, the Japanese semiconductor industry could potentially achieve a greater level of self-sufficiency, mitigating future geopolitical tensions and helping maintain competitiveness in the global market.
