METLEN Energy & Metals (LSE:MTLN) has agreed to supply gallium to a major Japanese chemical company under a long-term agreement covering up to 16% of the annual production planned from its new facility in Greece.
Financial terms of the agreement were not disclosed and METLEN did not identify the Japanese customer.
The agreement is the company’s second long-term supply deal for the metal in just over two months. In late July, METLEN announced an agreement to supply up to 25% of the facility’s planned output to a US technology company.
Together, the two agreements account for up to 41% of the plant’s future annual production capacity before commercial operations have started.
The facility is being developed with planned annual capacity of 50 metric tons of gallium. Commercial production is scheduled to begin in the third quarter of 2027.
METLEN said it expects the plant’s entire planned annual capacity to be contracted several months before commercial production begins.
Further supply agreements are expected, according to information obtained by Investing.com, with potential customers in the US and Japan among those that have expressed interest.
Greece Facility Targets European Gallium Production
Gallium is used in high-performance semiconductors, including applications in artificial intelligence infrastructure, power electronics, telecommunications and electric mobility.
China currently accounts for the majority of global gallium production and has previously introduced export restrictions, contributing to efforts by customers outside China to secure alternative sources of supply.
According to information obtained by Investing.com, METLEN is expected to establish integrated gallium production in Europe using feedstock from the refinery operated by its wholly owned Aluminium of Greece business.
“The international response to our gallium project continues to exceed expectations,” Executive Chairman Evangelos Mytilineos said. “The successive commercial agreements we are announcing demonstrate that global industry is actively seeking reliable, high-quality and diversified supply sources.”
Mytilineos has previously said METLEN also plans to produce other critical raw materials, including scandium and germanium.
More about METLEN Energy & Metals
METLEN Energy & Metals operates across the energy and metals sectors, including aluminium production and processing.
The company is developing gallium production capacity in Greece as part of its activities in critical raw materials.
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