METLEN signs gallium supply deal with Japanese chemical group

METLEN Energy & Metals announced on Monday that it has agreed to supply gallium to a major Japanese chemical company, its second long-term deal for the chip metal in just over two months.

The agreement covers up to 16% of annual output from the gallium plant METLEN is building in Greece, the company said. Commercial terms were not disclosed and the buyer was not named.

It follows a deal announced in late July to supply up to 25% of output to a leading U.S. technology company.

Taken together, the two agreements mean around 41% of the plant’s future production has been pre-sold before operations begin.

METLEN said it was almost certain the full 50 metric tons of annual capacity would be sold out months before commercial production starts, planned for the third quarter of 2027.

The new partnership further confirms the strong international demand for a reliable European source of supply. As industries worldwide seek to diversify their supply chains for critical raw materials, METLEN is strengthening its position as a trusted, long-term partner to leading industrial and technology companies across different geographic markets.

The growing commercial interest reflects both the strategic importance of gallium and the confidence in METLEN’s integrated production model, which combines proprietary technology developed in-house, secured feedstock from Aluminium of Greece, and industrial-scale production capabilities that are unique in Europe.

With each new commercial partnership, Greece is strengthening its position as an emerging hub for critical raw materials, while Europe is significantly enhancing its presence in one of the most strategically important value chains.

Rising Gallium Prices and the Impact on EBITDA

The commercial agreements are also accompanied by a significant upward revision in expectations for the profitability of the business. According to analysts, the potential annual contribution of gallium to METLEN’s EBITDA is now estimated at close to €200 million, compared with the initial forecast of €40 million, driven by the sharp increase in the metal’s international price. This is an estimate of potential future contribution, rather than profit that has already been recorded.

As gallium prices continue to rise, there is further upside potential for EBITDA estimates, to the extent that higher prices are reflected in sales contract pricing and, ultimately, translate into a higher contribution from gallium to the Group’s EBITDA.

“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.”