China is increasing customs scrutiny of indium exports, buyers said on June 19. The move raises concern that the metal could face tighter trade restrictions. Indium is used to make indium phosphide, a material for high-speed optical chips in AI data centers.

China produces nearly 70% of global indium.

Indium metal itself is not on the export control list. However, Beijing added indium phosphide to the list in February 2025.

This year, one European buyer said Chinese customs asked for end-user details for the first time. One North American buyer said approvals now take several days instead of being cleared the same day.

Indium has also been identified as a potential US vulnerability. Earlier this year, the US Defense Logistics Agency sought proposals to stockpile the metal. The military’s logistic agency aims to acquire up to 403 tons over three years.

🔗 Source: Reuters