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As China is by far the largest supplier of germanium, the country has an almost monopolistic position in the world. Since summer 2023, a licensing system has been in place for the export of germanium from the People's Republic. This measure was justified on the grounds of national security. As a result, export licenses must be obtained and detailed information on the area of application and end product must be provided. Export licenses will not be issued if these are even remotely related to the defence industry or can be used for such purposes (dual-use goods). As germanium is used in large quantities in thermal imaging technology as optics, this is particularly critical, as it cannot be stated with certainty whether such a system is used in the civilian or non-civilian sector.
As a result of the trade restrictions, exports of the coveted raw material germanium have fallen drastically and export volumes have not yet returned to the level before the restrictions came into force in summer 2023. This has a direct impact on the processing industries, not only in terms of the price of this important raw material, but also on the amount of material available on the market.
Future supply bottlenecks cannot be ruled out. These could affect the telecommunications industry, among others, as germanium is an irreplaceable additive in the production of fiber optic cables. They play an important role in everyday life for fast data transmission.
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The latest trade data from China indicates a change in the supply of the strategically important metals gallium and germanium.
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