Gingerbread, tinsel, roast goose, and critical raw materials: why indium, gallium, neodymium, and co. have more to do with Christmas than you think.
Despite economic challenges, Europeans seem unwilling to let go of their holiday gifting traditions. According to a survey by the market research firm GfK, the average consumer in Germany, for example, plans to spend €307 on Christmas gifts—only slightly less than in previous years. The total holiday spending is expected to remain stable at €18.1 billion.
Among the most popular gifts under the Christmas tree—alongside sweets, books, and fashion—are entertainment and consumer electronics. According to the survey, 29% of respondents intend to give home entertainment products like gaming consoles and headphones. Furthermore, a significant portion of the cash gifts and store vouchers, also highly favored according to GfK and the German Retail Association, is likely to be spent on electronics. Unsurprisingly, the electronics sector generates nearly a quarter of its annual revenue during November and December. However, less obvious is the critical role that raw materials play in making these holiday gifts possible. Gaming consoles, smartphones, and headphones wouldn’t function without essential materials like gallium or neodymium.
High-Tech Metals in Your Holiday Gifts
Smartphones and tablets have become modern holiday staples. Their touchscreens, which revolutionized user interaction by making physical buttons almost obsolete, rely on the technology metal indium. Applied as a thin layer of indium tin oxide beneath the glass, this material is highly transparent, conductive, and responsive to even the slightest electrical impulses from a finger or stylus.
Rare Earths: Enhancing Sound and Display
Rare earth elements like neodymium are integral to the enhanced audio quality of speakers in smartphones, laptops, PCs, stereo systems, and headphones. These elements are used in powerful, compact magnets that maximize performance without adding unnecessary weight or bulk. Such magnets are also critical in smartphone cameras and vibration motors.
Similarly, chargers made with gallium nitride (GaN) offer high performance in a compact form. These energy-efficient devices can rapidly charge smartphones, laptops, and other gadgets. Gallium is also part of other components, such as transistors that control current and voltage.
Precious metals like gold and silver, known for their excellent conductivity and resistance to corrosion, are commonly used in electronic contacts and circuit boards. Ruthenium, another precious metal, enhances hard drive storage capacity. Batteries, another cornerstone of modern electronics, rely on raw materials such as lithium, cobalt, and nickel.
Lastly, nearly all electronic devices require microchips, from the smallest gadgets to the most advanced systems. To function effectively, these chips depend on raw materials like silicon, gallium, hafnium, and rare earth elements.
Critical raw materials are found in many popular Christmas gifts
Photo: pixelshot via Canva
Critical Raw Materials on Your Wrist and in Children’s Rooms
Many materials mentioned earlier are also found in wearables—smart, portable health devices that track steps, monitor sleep quality, and more. These miniature computer systems are a trending gift item, with 29% of respondents in the GfK survey planning to give them as presents. At 51%, even more popular are toys—some of which also incorporate critical raw materials. Electronic toys often rely on batteries and their associated components. Additionally, rare-earth magnets power the motors in remote-controlled cars and enhance the mobility of dolls or stuffed animals.
Strategic Metals Beyond the Gift Box
Critical raw materials don’t just appear under the tree; they’re also a part of holiday decorations. LEDs dominate modern Christmas lighting and use various raw material combinations, including gallium and indium, depending on the desired color. These strategic metals bring festive brilliance to Christmas trees and window displays alike.
Global Supply Chains and Their Impact on Christmas
The deep connection between critical raw materials and the holiday season extends to the global supply chains that make it all possible. Many essential resources, such as rare earths and gallium, are produced almost exclusively in China. The country is also a leading manufacturer of countless electronic goods and the EU’s primary toy exporter.
However, this concentration creates vulnerabilities in supply chains, as evidenced by the disruptions of recent years, including the COVID-19 pandemic. Even now, global logistics face challenges, with experts citing longer transport times due to geopolitical uncertainties impacting the holiday trade.
Interestingly, awareness of these issues is growing among consumers. According to a survey commissioned by the communications agency Maisberger, 27% of respondents are willing to accept longer delivery times for gifts if it ensures transparency in supply chains. For those still undecided or lacking inspiration for gift ideas, vouchers remain a practical option this holiday season.
Wishing You a Joyful Holiday Season
Whatever you choose to give, we wish you peaceful and happy holidays.
Sincerely,
The Editorial Team at Rawmaterials.net
Photo: AI-generated