Rare Gases (Krypton, Neon, Xenon): Impact assessment for supply security
Russia and Ukraine are significant sources of rare gases (krypton, neon, xenon). Russia's invasion of Ukraine affects the rare gases supply. Industry stockpiles can mitigate the impacts in the short term. The supply disruption might be severe with associated price inflation until production capacity is developed elsewhere combined with conservation/recycling/substitution strategies to handle shortages. As Ukraine is a leading producer of purified neon gas, a critical input for the manufacture of semiconductors, neon’s supply disruption poses the greatest challenges. A neon scarcity worldwide could substantially impact industrial supply chains reliant on semiconductors.
The EU is a net exporter of rare gases by value. The EU sourced about half of its rare gases imports from Russia and Ukraine in 2021. China and the US are the potential sources for EU’s import diversification. The impact of supply disruption is expected milder for EU manufacturers than the rest of the world. The EU hosts already a sizable production base for rare gases, EU-based companies are world leaders in air separation, and domestic capacity could be theoretically expanded. Meanwhile, the EU is not a major producer of semiconductors worldwide. Impacts are probable in the broader EU manufacturing sectors by worsening the shortage of imported semiconductors for key industries.
GEORGITZIKIS Konstantinos;
D'ELIA Eleonora;
2022-08-12
European Commission
JRC130349
Additional supporting files
| File name | Description | File type | |
|---|
