China Set to Break US Dependency with 1.4 Billion Euros Worth of Pure Quartz, Aiming for 35 Million Tons
In a significant development for the global technology industry, China has discovered vast deposits of high-purity quartz (HPQ) in the Qinling region of Henan Province and the Altay region of Xinjiang Uygur Autonomous Region. This discovery could potentially redefine raw material supply for technology-critical industries like semiconductors and solar energy, with far-reaching implications for innovation and production scale worldwide.
HPQ is a crucial raw material used primarily to produce high-purity silicon, which is the foundational material for semiconductor chips and photovoltaic cells in solar panels. The high-purity quartz discovery could ease global bottlenecks in raw silicon supply, potentially reducing costs for semiconductor and solar manufacturers.
The Chinese government has classified HPQ as a national strategic mineral and is taking steps to bolster its industrial capacity. The Ministry of Natural Resources is planning to establish an engineering and innovation center for HPQ exploration, processing, and purification. This centre will bring together experts in geology, mineral processing, and material science to ensure sustainable development of HPQ.
The unique properties of HPQ, such as high-temperature resistance, corrosion resistance, and optical transparency, make it indispensable in the modern tech landscape. Historically, approximately 80% of China's HPQ supply came from the Spruce Pine mine in North Carolina, leaving China vulnerable to fluctuations in the global supply chain. The newly discovered deposits in Qinling and Altay are expected to enable China to localize its supply chain for semiconductors and solar energy production.
The discovery offers China an opportunity to bolster its role in the high-tech manufacturing sector. Semiconductor devices require ultra-high-purity silicon derived from quartz. Improved access to Chinese high-purity quartz could support the expansion of semiconductor fabrication capacities worldwide, crucial for meeting growing demand in electronics, 5G, AI, and automotive sectors.
Acceleration of Solar Energy Deployment is another potential impact. High-purity quartz is essential for the photovoltaic industry as well. Greater availability could further lower costs and increase production efficiency of solar cells, helping accelerate the global transition to renewable energy.
Given China's dominant role in global supply chains, its control over a new high-purity quartz resource may shift supply dynamics, influence prices, and affect global investment decisions in technology production facilities. The Chinese government aims to launch targeted exploration projects to secure further supplies of HPQ, improving national resource security.
Early trials indicate that the purified quartz can meet the high standards required for advanced industrial applications. Chinese institutions and industry players have achieved purity levels of 4N5 (99.995%) and 4N8 (99.998%) in quartz production. This discovery positions China to greatly enhance its technological capabilities, potentially saving $1.5 billion annually by reducing its reliance on HPQ imports.
In summary, China's discovery has the potential to strengthen and diversify the supply chain for technology-grade materials, with positive ripple effects across semiconductor manufacturing and solar power generation sectors globally. A nationwide survey is underway to fully assess China's HPQ reserves, offering a promising future for China's role in the high-tech manufacturing sector.
In light of the newly discovered high-purity quartz (HPQ) reserves, the financial impacts for both the semiconductor and solar energy industries could be significant. With easier access to HPQ, costs for semiconductor and solar manufacturers might decrease due to reduced raw silicon supply bottlenecks.
Given China's ambition to establish an engineering and innovation center for HPQ exploration, processing, and purification, and its aim to secure further HPQ supplies, foreign investment in technology production facilities may shift towards areas with strong partnerships with China.
