GEM Expands Critical Mineral Recycling to Strengthen China’s Supply Chain Independence

GEM

High-Purity Germanium and Tungsten Recycling to Double by 2027

Chinese battery materials producer GEM is expanding its critical mineral recycling capacity to support China’s supply chain independence. In its 2024 annual report, GEM announced significant investments in germanium recycling and high-purity refining, driven by Beijing’s resource localization strategy. The company aims to rapidly scale its recycling of gallium, indium, and scandium, all of which are subject to China’s recent export restrictions.

Strategic Metals and Battery Materials Drive Growth

GEM will also broaden recycling operations for minor metals such as molybdenum, tantalum, and niobium. These materials are essential for defense and electronics manufacturing. The company currently recycles over 20 metals from waste batteries, electronics, vehicles, and plastics across its eight Chinese plants and international sites in South Korea, South Africa, and Indonesia.

Doubling Output of Tungsten and Platinum Group Metals

To support industrial demand, GEM plans to double its output of tungsten powder and electronic metals to 20 tonnes by 2027. Tungsten’s high conductivity and melting point make it ideal for semiconductors and photovoltaic thin-film cells. In addition, GEM will build a demonstration plant for platinum, palladium, and rhodium refining, targeting similar output growth by 2027.

Core Battery Material Output Set for 46% Growth in 2025

The company expects a strong rise in core product output—nickel, ternary precursors, cobalt, cathode materials, and recycled batteries—with a projected 46% increase in 2025. From 2025 to 2027, the annual growth rate is forecast to moderate to 36%, still reflecting robust demand for EV and energy storage materials.

The Metalnomist Commentary

GEM’s expansion underscores China’s push for mineral sovereignty in a geopolitically constrained environment. By scaling critical mineral recycling, GEM reduces import dependence while reinforcing its leadership in the global circular economy for strategic metals.