Mount Ridley Mines’ patent-pending Selectro metallurgical processing technology has delivered a stunning 95 per cent gallium recovery from a third-party bauxite sample, a result that could have serious implications for Western nations looking to break China’s stranglehold on the critical mineral.

In a single leach undertaken at below 100 degrees Celsius, the company’s proprietary process not only recovered 94.9 per cent of the gallium, but also 91.9 per cent of the aluminium and an impressive 96.7 per cent of the iron.

The test was run on a composite bauxite sample from Australian Silica Quartz Group’s Darling Range project in Western Australia, which contained an initial head grade of 80 parts per million (ppm) gallium.

The result is significant as it comfortably outstrips the conventional Bayer process used primarily in the refining of bauxite for alumina - the stage before electrolytic aluminium production - which only extracts roughly 70 per cent of the gallium into its liquor. Most notably, Mount Ridley says its new leach process leaves behind a clean, silica-rich residue, neatly sidestepping the infamous and environmentally challenging toxic “red mud” waste stream that is a hallmark of the Bayer process.

Our gallium result completes the bauxite picture and brings us full circle back to our focus on critical minerals. Bauxite is the world’s main source of gallium, but recovering it through conventional refining requires dedicated circuits that are costly to build. We have long held the view that technology is the most effective way to deliver a new source of gallium supply. We believe Selectro shows strong potential here.

The gallium market is currently being supercharged by heavy demand. Industry analyst Yole Group forecasts that the power electronics gallium nitride device (power GaN) market alone will grow at a compound annual rate (CAGR) of 35 per cent from 2025 and is slated to hit US$3.5 (A$4.99) billion by 2031.

As highlighted by Yole Group, the power electronics market for gallium nitride is transitioning through three distinct phases. These include the consumer electronics production sector, with products such as mobile phones, laptop fast chargers up to 300 Watts, power tools and home appliances, estimated to account for 50 per cent of the market by 2031.

The second and fastest-growing market for gallium lies in telecommunications and infrastructure, where next-generation high-voltage power supply units are increasingly needed to slash energy waste in AI data centres. The sector is tipped to grow at a whopping 45 per cent CAGR, reaching an estimated US$750 million (A$1.07 billion) by 2031.

Automotive electric vehicles’ (EVs) main energy conversion systems such as on-board chargers and DC-DC power converters comprise the third growth sector, which is reshaping the market with an explosive 57 per cent CAGR as car systems transition to a 48 volt architecture.

Mount Ridley’s Selectro process was initially designed to tackle ore from the company’s Grass Patch heavy rare earths, scandium and gallium project, 25 kilometres north of Esperance in Western Australia’s southwest region. The company says the technology has already demonstrated high recoveries from its own feedstock.

However, the company’s latest successful test of its Selectro leach technology on third-party bauxite, the world’s main source of both aluminium and gallium, has opened the door to potentially far broader commercial applications, highlighting the technology’s versatility beyond Mount Ridley’s own resource.

The timing of the breakthrough could hardly be better. Gallium is not only a critical semiconductor material essential for high-tech applications such as AI data centres and electric vehicles, but also includes civilian and defence radar and 5G communications, which are separately categorised as a fourth radio frequency (RF GaN) growth sector.

Current global gallium supply is almost completely cornered by China, which accounts for an estimated 99 per cent of the world’s primary production. This contrasts sharply with the United States, which has no domestic primary production and relies entirely on imports.

This supply concentration became a distinct strategic vulnerability for the US when China introduced export licensing for gallium in August 2023. While a subsequent export ban to the US was suspended until November 27, 2026, standard dual-use licensing protocols remain strictly enforced.

Reports from the US Centre for Strategic and International Studies and customs monitoring show that direct Chinese exports of gallium to the US have not resumed in any meaningful way, forcing US industries to look for indirect workarounds or alternative refining routes via allies like Japan, Germany, and Canada - and perhaps now Australia, too.

Highlighting the urgency, global aluminium giant Alcoa has joined forces with the governments of Australia, Japan and the United States to build a major gallium production plant at its Wagerup alumina refinery south of Perth. Backed by a previously announced A$200 million Australian Government financing commitment, the project is targeting annual production of 100 tonnes of gallium, equivalent to 10 per cent of global demand.

The geopolitical squeeze has sent prices soaring and Western governments are scrambling to support the development of alternative supply chains. For tech and defence manufacturers in the US and Europe seeking refined, ultra-high-purity gallium - essential for semiconductor chips - thin overseas inventories and restricted supply paths have maintained intense upward pressure, keeping high-end spot prices locked near historic highs of US$2100 (A$3000) per kilogram.

A recent S&P Global market report estimates that establishing new primary refining assets outside of China to bypass these restrictions will require a long-term structural cost of US$620 to $700/kg (A$880 to 1000) by 2028. This dynamic sets a very high long-term floor for international prices and it is against this backdrop that Mount Ridley’s technology now steps into the frame.

With strong recoveries now confirmed for all key metals in the bauxite feed, Mount Ridley says its immediate focus will shift to the separation and purification of the aluminium, iron and gallium from the leach solution.

A second bauxite test is already underway to further tweak the process, while the company is pushing ahead with fast-tracked design and construction of a demonstration plant showcasing its Selectro process.

As Western economies look to de-risk their critical mineral supply chains, home-grown processing technologies capable of efficiently and cleanly extracting value from new or existing resources are attracting serious attention. By delivering high gallium recoveries from common bauxite without the red mud headache, Mount Ridley might just have a serious ace up its sleeve.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au