Heungkong Wanji gallium smelter planned in Henan to boost semiconductor supply

Luoyang Heungkong Wanji

Heungkong Wanji gallium smelter will add 60 t per year in Henan. The plant will sit inside a 1.2mn t/yr alumina complex. Local authorities opened an environmental review on 11 June. The company has not announced a commissioning date.

China’s alumina producers are accelerating gallium projects to capture value. Prices jumped in 2022 with EV magnet demand. Export controls since August 2023 also reshaped supply strategies. Therefore, producers see strategic and commercial incentives to scale.

Capacity wave and competitive landscape

A capacity wave is building across Guizhou and beyond. Guizhou Haihao launched 50 t per year in September 2024. Guizhou Huajin added another 50 t per year last November. Guizhou Galuminium started a 40 t per year line in 2022. Guizhou Qiya is adding 20 t per year to reach 60 t. Minor metals producer Vital opened an 80 t per year plant in 2025. Together, these projects signal rising domestic supply.

Market implications and policy context

Rising capacity could pressure prices while improving availability for downstream users. However, export licensing can still influence trade flows. Integrated alumina sites reduce unit costs for gallium recovery. Therefore, the Heungkong Wanji gallium smelter may gain cost advantage. Meanwhile, global buyers seek stable sources for semiconductors and power electronics.

The Metalnomist Commentary

This project adds another pillar to China’s gallium-by-alumina strategy. Execution will hinge on recovery yields, product specs, and permitting pace. Watch how export policy interacts with a fast-rising domestic capacity base.