Greece's METLEN has agreed to supply up to 16% of the future output of its Greek gallium plant to a major Japanese chemical company. Together with a July deal for up to 25%, about 41% of the 50-tonne-a-year plant is now pre-sold.
At a glance
- Commercial production at the 50-tonne-a-year plant in Greece is planned for the third quarter of 2027.
- METLEN says the plant's entire output will almost certainly be sold out months before production starts.
- The gallium will come from feedstock at METLEN's wholly owned Aluminium of Greece refinery.
Background
Gallium is a soft metal used in chips for power electronics, radar and LEDs, and China supplies most of the world's output. It is recovered as a by-product of refining bauxite into alumina, so an alumina refinery can become a gallium source. METLEN Energy & Metals is a Greek industrial group that owns the Aluminium of Greece refinery and smelter.
What happened
METLEN said on Monday it has signed a long-term agreement to supply gallium to a major Japanese chemical company. The deal covers up to 16% of the annual output of the gallium plant it is building in Greece. The commercial terms are confidential, and METLEN did not name the buyer.
It is METLEN's second such deal in just over two months. In late July, it agreed to supply up to 25% of output to a leading US technology company, taking the share pre-sold to about 41%.
Why buyers are signing early
Manufacturers are trying to diversify where they get critical raw materials, and METLEN pitches its plant as a reliable European source. Its model combines its own technology with feedstock and industrial facilities at the Aluminium of Greece refinery, which the company says is unique in Europe. With each new deal, METLEN says, Greece strengthens its position as an emerging hub for critical raw materials.
"The international response to our gallium project continues to exceed expectations," said executive chairman Evangelos Mytilineos. He said the agreements show global industry is actively seeking reliable and diversified supply, and that Greece is becoming part of a new global technology ecosystem.
What it means
METLEN says it is almost certain the plant's full 50 tonnes a year will be sold out months before commercial production begins in the third quarter of 2027. For Europe, it would mean a domestic source of a metal it now imports.
Buyers are committing to output from a plant that is still under construction. That shows how much they value a reliable source of gallium outside China.
Our read
Outlook: neutral. The plant will not produce until late 2027, so the deal does not change gallium supply today. It shows strong demand for non-Chinese supply, which supports prices outside China.
What to watch
- Further METLEN supply deals that would fill the remaining 59% of planned output.
- Construction progress toward the planned start in the third quarter of 2027.
For information only, not investment advice.
Gallium price in India
metalscost.com India reference price as of 2026-10-17.
Detailed analysis
Timeline
- 2026-10-05: METLEN signs a gallium supply deal with a major Japanese chemical company.
Demand Drivers
Buyers in Japan and the US are signing up for output before the plant is built.
Supply Drivers
METLEN plans 50 tonnes a year of European gallium from the third quarter of 2027.
What could lift prices
- Buyers locking in supply years ahead points to strong demand for gallium outside China.
- About 41% of the plant's output is already committed, leaving less for spot buyers.
What could weigh on prices
- A new 50-tonne-a-year European source adds to global gallium supply from 2027.
- Pre-sold output reduces the urgency for buyers to compete for other non-Chinese supply.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Greece | Medium | The plant would make Greece a European source of a critical metal. |
| Japan | Low | A major Japanese chemical company secures up to 16% of the plant's output. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Semiconductor Manufacturing | Positive | Chip supply chains gain a future non-Chinese gallium source. |
Who gains, who loses
- METLEN Energy & Metals: It has pre-sold about 41% of its future gallium output before production starts.
- Late buyers of non-Chinese gallium: Most of the plant's output may be committed before it opens.
Other ways this could play out
- If the plant starts on time in the third quarter of 2027, Europe gains a meaningful new gallium source.
- If construction slips, buyers relying on METLEN may need to look elsewhere.
Price risks
- Changes in China's gallium export policy would move prices far more than this deal.
- A delay at the Greek plant would postpone the new supply.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
Japan