RareX and Gega Elements: Building Australia’s First Gallium Supply Chain

How RareX and Gega Elements Are Reshaping Australia's Gallium Supply Chain

In a strategic move set to transform Australia's critical minerals sector, RareX Limited (ASX: REE) has partnered with Gega Elements to develop the nation's first vertically integrated gallium supply chain. This collaboration aims to establish sovereign capabilities in a mineral that has become increasingly vital for modern technology and national security.

The Strategic Partnership Transforming Critical Mineral Supply

The three-year strategic agreement between RareX and Gega Elements represents a significant step toward reducing Australia's dependence on foreign gallium sources. With China currently controlling approximately 95% of global gallium production, this partnership addresses growing concerns about supply chain vulnerability in critical technology sectors.

James Durrant, Managing Director of RareX, emphasized the strategic importance of this collaboration: "Gallium is critical for semiconductors, 5G infrastructure, and defense applications—yet almost entirely controlled by a single jurisdiction. Through this collaboration with Gega Elements, we're working to change that dynamic and establish a secure Australian supply chain."

Why Gallium Has Become a Strategic Priority

Gallium's strategic importance has skyrocketed in recent years, driven by its essential role in next-generation technologies. Global demand is projected to grow at a compound annual growth rate of 16.5% between 2023 and 2030, according to industry analysis.

Chinese export restrictions implemented in 2023 created significant supply vulnerabilities, highlighting the risks of concentrated production. These restrictions sent shockwaves through technology supply chains and accelerated efforts by Western nations to develop alternative sources.

Gallium's critical applications include:

• Semiconductor manufacturing: Essential for gallium nitride (GaN) and gallium arsenide (GaAs) semiconductors
• 5G infrastructure: Required for high-frequency, high-power transistors
• LED lighting: Core component in energy-efficient lighting technologies
• Defense systems: Used in radar, electronic warfare equipment, and guidance systems
• Emerging technologies: Critical for artificial intelligence hardware and quantum computing

"Australia's opportunity to develop sovereign gallium capabilities aligns perfectly with the national Critical Minerals Strategy 2023-2030, which prioritizes domestic processing capabilities for strategically important resources." – Australian Trade and Investment Commission

The RareX-Gega Elements Collaboration Framework

The partnership focuses on leveraging RareX's mineral resources with Gega Elements' proprietary processing technology through:

1. Technical validation of gallium extraction from RareX's ore samples
2. Integration of bench-scale refining results into comprehensive techno-economic modeling
3. Joint development of customized refining flowsheets specifically designed for RareX's mineral profile
4. Coordinated approach to government funding applications under Australia's critical minerals reserve
5. Establishing a clear pathway toward binding commercial agreements following successful technology demonstration

This structured approach aims to de-risk the development pathway while maximizing the strategic and commercial value of RareX's gallium resources.

What Makes Gallium a Critical Mineral for Modern Technology?

Gallium has transitioned from an obscure byproduct of aluminum production to a cornerstone of modern technology. Its unique properties—particularly its ability to efficiently convert electricity to light and operate at high frequencies—make it irreplaceable in numerous high-tech applications.

Applications Driving Gallium Demand

The exponential growth in gallium demand stems from its diverse and expanding applications:

• Semiconductor manufacturing: GaN semiconductors offer 100x faster switching speeds and 40% higher energy efficiency than traditional silicon
• 5G infrastructure: Gallium compounds enable the high-power, high-frequency amplifiers required for 5G base stations
• LED lighting: Approximately 40% of global gallium production goes into LED manufacturing
• Defense systems: Used in radar, missile guidance, and electronic warfare equipment
• Renewable energy: Critical for high-efficiency solar cells and power conversion systems

"The transition to gallium nitride semiconductors represents one of the most significant materials advances in electronics since silicon," notes the U.S. Department of Energy in their 2023 critical materials assessment.

Global Supply Chain Vulnerabilities

The gallium market faces severe supply chain constraints:

• Concentrated production: China controls approximately 95% of refined gallium production
• Export restrictions: July 2023 restrictions require exporters to apply for special licenses
• Limited processing capacity: Minimal refining capabilities exist outside China
• Byproduct dependency: Most gallium is recovered as a byproduct of aluminum or zinc processing
• Recycling challenges: Current recycling rates remain below 1% of total supply

These vulnerabilities have created strategic concerns for Western economies, particularly those with advanced technology and defense sectors dependent on secure gallium supplies.

What Resources Does RareX Bring to the Partnership?

RareX contributes two significant projects with demonstrated gallium potential: the Cummins Range Rare Earths Project in Western Australia and the Khaleesi Project in New South Wales. These resources position RareX among the select few companies with large-scale gallium development potential outside China.

Cummins Range Project Gallium Potential

The Cummins Range project has demonstrated exceptional gallium mineralization:

• Historical drill holes with values up to 6,826g/t gallium
• Significant intercepts including 99m at 106g/t gallium from 1m depth
• Additional valuable elements in the same mineralization: 0.77% TREO and 160g/t scandium
• Only 25% of historical drilling assayed for gallium to date
• Substantial untapped potential in RareX's drilling (not yet assayed for gallium)

These grades significantly exceed typical gallium concentrations in bauxite (the primary source for current global production), which typically range from 30-80g/t. This suggests potential for economically viable direct extraction rather than relying on byproduct recovery.

Khaleesi Project Gallium Resources

The Khaleesi Project represents another promising gallium source:

• Extensive gallium mineralization identified across multiple zones
• Aircore drilling intersections up to 86g/t gallium
• Rock chip samples measuring up to 81g/t gallium
• $160,000 Exploration Incentive Scheme co-funded drilling grant secured from WA government
• Plans for 300-1,300m of reverse circulation drilling to further define resources
• Six high-priority targets identified for testing based on geophysical and geochemical data

This multi-project approach diversifies RareX's gallium resource base and provides multiple pathways for development.

How Does Gega Elements' Technology Transform Gallium Processing?

Gega Elements contributes proprietary processing technology designed to overcome traditional challenges in gallium extraction and refining. While specific technical details remain confidential, the company's approach focuses on creating cost-effective, environmentally responsible processing solutions.

Innovative Refining Methodology

Gega Elements' technology includes:

• Proprietary research-based extraction techniques: Developed specifically for complex ore bodies
• Environmentally responsible processing: Reduced chemical usage and waste generation
• Cost-effective refining solutions: Lower capital and operational expenditures compared to conventional methods
• Advanced materials science approach: Leveraging breakthroughs in separation technology
• Next-generation refining technology: Designed for higher recovery rates and purity levels

The current phase involves bench-scale testing to validate extraction efficiency, purity levels, and process economics before scaling to commercial production.

Creating a Vertically Integrated Supply Chain

The partnership aims to establish Australia's first complete gallium supply chain:

• Local extraction and refining capacity: Processing from mine to refined product within Australia
• Sovereign-controlled processing pathway: Reducing dependence on overseas refineries
• Complete value chain integration: Capturing maximum value from Australian resources
• Australian-based critical mineral security: Supporting domestic technology manufacturing
• Reduced carbon footprint: Minimizing transportation requirements in the supply chain

"Developing sovereign processing capability for critical minerals like gallium represents a significant opportunity for Australia to move up the value chain and establish high-tech manufacturing industries." – Australian Government Critical Minerals Strategy 2023-2030

What Are the Economic and Strategic Benefits of the Partnership?

The RareX-Gega Elements partnership offers significant economic and strategic advantages for Australia's critical minerals sector and broader technology ecosystem.

Australia's Critical Mineral Resilience

The development of domestic gallium production and refining capabilities provides:

• Reduced dependency on foreign supply chains: Decreasing vulnerability to export restrictions
• Development of domestic technical capabilities: Building Australian expertise in critical mineral processing
• Creation of a high-value processing industry: Estimated to generate 5-10x the value of raw material exports
• Contribution to national security objectives: Supporting defense industrial base requirements
• Positioning in growing technology materials market: Capturing value in a market projected to reach $452 million by 2030

This aligns with Australia's $4 billion Critical Minerals Fund, which aims to position the country as a global leader in critical minerals processing and advanced manufacturing.

Commercial Potential for Project Stakeholders

The commercial benefits extend beyond supply chain security:

• Premium market positioning: Non-Chinese gallium sources expected to command 15-25% price premiums
• Value-added processing: Increasing resource value by approximately 400% through refining
• Leveraging resource scale with advanced technology: Creating competitive cost advantages
• Access to growing markets: Particularly in defense, aerospace, and advanced electronics
• Potential for downstream integration: Future opportunities in semiconductor manufacturing

By combining resource quality with technological innovation, the partnership aims to establish a commercially viable, sustainable mining transformation for gallium supply.

What Challenges Must Be Overcome?

Despite the significant potential, several challenges must be addressed for the partnership to succeed.

Technical Development Milestones

The pathway from concept to commercial production includes several critical technical hurdles:

• Bench-scale testing and validation: Confirming extraction efficiencies and product purity
• Scaling from laboratory to commercial production: Ensuring process stability at larger volumes
• Optimizing extraction rates and purity levels: Meeting semiconductor-grade specifications (99.99%+)
• Developing cost-competitive processing solutions: Achieving production costs below $400/kg
• Creating environmentally sustainable operations: Minimizing waste streams and chemical usage

These challenges are common in critical minerals development but require substantial investment in research, development, and pilot-scale testing.

Market Development Considerations

Beyond technical challenges, market dynamics present additional considerations:

• Establishing end-user relationships: Building trust with semiconductor and electronics manufacturers
• Competing with established suppliers: Overcoming existing supplier relationships and price advantages
• Navigating changing regulatory environments: Adapting to evolving critical minerals order
• Securing long-term offtake agreements: Essential for project financing
• Demonstrating quality and reliability standards: Meeting stringent industry specifications

Industry analysts note that while Chinese supply dominance presents challenges, it also creates opportunities for premium pricing of non-Chinese sources with verified ESG credentials.

FAQ: RareX and Gallium Production

What makes gallium a critical mineral?

Gallium is essential for semiconductors, 5G infrastructure, and defense applications, with supply currently dominated by China (95% of global production). Recent export restrictions have highlighted the vulnerability of global supply chains, making alternative sources strategically important for technology security.

How significant are RareX's gallium resources?

RareX's projects show exceptional potential, with historical drilling at Cummins Range revealing values up to 6,826g/t gallium and significant intercepts of 99m at 106g/t. These grades substantially exceed typical gallium concentrations in bauxite (30-80g/t), suggesting economic viability for direct extraction rather than byproduct recovery.

What advantage does Gega Elements bring to the partnership?

Gega Elements contributes proprietary, next-generation gallium refining technology focused on creating cost-effective and environmentally responsible processing solutions. Their expertise enables a sovereign-controlled supply chain within Australia, reducing dependence on overseas refineries.

What is the timeline for development?

The strategic collaboration agreement spans three years, focusing initially on technical validation of samples using Gega's bench-scale refining platform. Following successful demonstration, the partners intend to progress toward binding commercial agreements and financing arrangements for full-scale development.

Future Outlook for Australian Gallium Production

Potential Market Impact

The successful development of an Australian gallium supply chain would have far-reaching implications:

• Diversification of global gallium supply: Reducing single-jurisdiction concentration
• Secure supply chains for Western technology manufacturers: Supporting semiconductor sovereignty
• Development of premium market for ethically sourced materials: ESG-compliant production
• Establishment of Australia as a critical mineral processing hub: Creating downstream opportunities
• Potential for regional technology manufacturing growth: Attracting electronics production

Industry analysts project that new gallium sources could capture 15-20% of global market share by 2030, particularly in high-value applications requiring supply chain security.

Next Steps in Development Pathway

The partnership's development roadmap includes:

1. Completion of technical validation testing: Expected within 12-18 months
2. Integration of results into project economic assessments: Developing comprehensive financial models
3. Advancement of commercial-scale processing solutions: Pilot plant development
4. Engagement with strategic end-users: Establishing offtake frameworks
5. Progression toward binding commercial agreements: Creating formal joint venture structure

Disclaimer: This article contains forward-looking statements regarding mineral resources, processing technology, and market developments. Actual results may vary based on technical outcomes, market conditions, and regulatory developments. Readers should conduct their own research before making investment decisions.

The RareX and Gega Elements gallium supply chain represents a significant opportunity to reshape Australia's position in global critical minerals markets. By combining quality resources with innovative processing technology, this collaboration addresses critical supply vulnerabilities while creating substantial economic value. As global demand for gallium continues to accelerate, establishing sovereign supply capabilities has become not just commercially attractive but strategically essential for Australia's future energy transition in minerals and technology sectors, which will benefit from ongoing mining innovation trends.

Are You Watching For The Next Major Mineral Discovery?

Discovery Alert's proprietary Discovery IQ model provides instant notifications when significant discoveries like gallium and other critical minerals are announced on the ASX, giving you a crucial edge in the market. Explore historic returns from major discoveries and position yourself ahead of the market by visiting Discovery Alert's dedicated discoveries page.