London, December 22nd (Argus) - The Luxembourg-based mining company Eurasian Resources Group (ERG) has signed a long-term gallium supply agreement with the Japanese trading company Mitsubishi Corporation.
ERG has not yet produced any gallium, but plans to start production in Kazakhstan in the third quarter of 2026. The gallium project planned by ERG is expected to be realized as a by-product of bauxite processing at its Pavlodar aluminum plant, with an annual output of up to 15 tons. ERG has not specified the quantity of materials it will supply to Mitsubishi.
China is the world's largest producer of gallium, but has strictly controlled the export of the metal since 2023. During the period from January to November this year, China's gallium export volume was 62,615 kilograms, an increase of 13% compared to the same period in 2024, but a decrease of 30% compared to the 2022-11 period before China implemented the export control.
Japan is China's largest importer of gallium. More than half of the gallium exported by China this year has flowed to Japan.
The latest assessment by Argus of the landed price of European metal gallium is $1,300 - $1,450 per kilogram. This price has increased by 139% compared to the beginning of the year and by 299% compared to when China first implemented export control on this metal in August 2023.
