A little-known Chinese metals firm is running the show: China’s Vital Materials’ rise to dominance in metals illustrates the commercial, political, and technical obstacles that its Western rivals face in achieving similar success, Bloomberg reports. The little-known firm currently dominates the market for several so-called “minor metals” usually featured in lists of critical minerals focused on by the US, EU, UK and Australia. Vital currently holds the largest share of the markets for selenium, tellurium, indium, and bismuth, the business information service says, citing sources in the know. Such metals are usually used for solar energy, flat-screen televisions, and pharmaceuticals. Vital is also among the top three companies in gallium and germanium, which are used in the production of touch-screen phones, satellites, and high-end semiconductors. Vital does not mine the elements itself, but rather refines them at some two dozen facilities globally, a move that experts say has helped it fly “under the radar for a long time.”

Tough to emulate: Worries about an increased reliance on critical minerals from Chinese suppliers is now on the rise after China imposed controls on exports of gallium and germanium earlier this month as prices surged. Vital’s acquisition between October 2019 and January 2020 of a vast stockpile of metals from scandal-hit Chinese commodities exchange Fanya proved successful, allowing the company to grab raw materials that could have made its way to global markets and provided a shield against unexpected supply disruptions. Some Western refiners have the capacity to go head to head with Vital, yet most have been hit hard by the minor metals industry’s wild price fluctuations, which has proven profitable for Vital. The company has also acquired struggling competitors in a bid to expand internationally, allowing it to derive about half of its revenues from its operations overseas.

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