METLEN signs gallium supply deal with Japanese chemical group

METLEN Energy & Metals has entered into a supply agreement for gallium with a significant Japanese chemical firm, marking its second long-term commitment to provide the crucial chip metal in a little over two months. The deal secures up to 16% of the gallium plant that METLEN is constructing in Greece, though the exact commercial terms remain undisclosed.

The buyer has not been identified, but this agreement follows another in late July, securing up to 25% of output for a major U.S. technology entity, totaling approximately 41% of the plant's anticipated production before its anticipated 2027 launch.

METLEN is confident that the entire 50 metric tons of annual capacity will be sold out well before the plant's commercial operation begins. Reports suggest that more supply agreements are on the horizon, with potential buyers from the United States and Japan expressing interest. The demand for gallium, a key component in high-performance semiconductors, is anticipated to surge with the increasing use of artificial intelligence, power electronics, telecommunications, and electric mobility.

Currently, China dominates gallium production, often restricting exports, prompting Western companies to seek alternative suppliers.

METLEN's Executive Chairman, Evangelos Mytilineos, expressed that the international response to the company's gallium project has surpassed expectations. The series of commercial agreements announced underscores the global industry's demand for dependable, high-quality, and varied supply chains. Mytilineos has previously announced METLEN's plans to produce other critical raw materials, such as scandium and germanium.