A research report from Guotai Haitong Securities Co., Ltd. highlights that China's reserves of gallium, germanium, and indium account for 80%–85%, 40.7%, and 72.73% of global reserves, respectively. By 2024, the scale of China's high-performance sputtering target market had expanded to RMB 46.7 billion, with an average annual growth rate of 12.89%, and is projected to reach RMB 72 billion by 2029. Listed companies involved in scattered metal production in their 2025 semi-annual reports span segments including gallium, indium, germanium, tellurium, and rhenium. Scattered metals and sputtering targets are vital components and supporting materials for contemporary high-tech new materials, and their advanced preparation industry will drive the rapid development of domestic new quality productive forces and the continuous expansion of import substitution.
Overview of Scattered Metals and Their Relationship with Metals, Non-Ferrous Metals, and Rare Metals
Scattered metals typically include seven elements: gallium (Ga), indium (In), thallium (Tl), germanium (Ge), selenium (Se), tellurium (Te), and rhenium (Re). These metals play irreplaceable roles in both traditional fields and strategic emerging industries. According to data cited from the United States Geological Survey in the "Overview of China's Scattered Metal Mineral Resources," China's gallium, germanium, and indium reserves represent 80%–85%, 40.7%, and 72.73% of global reserves, respectively. Metals are classified into ferrous metals, non-ferrous metals, and rare metals. Rare metals further encompass five major categories, including scattered metals.
Applications and Supply-Demand Dynamics of the Scattered Metal Family
Gallium's primary demand comes from integrated circuits (79%). In recent years, robust supply and demand for gallium have kept prices fluctuating at high levels. Indium's main demand is driven by ITO targets (70%). Strong demand for indium has led to a continued upward price trend with volatility. Thallium is widely used in high-temperature superconductors, national defense and military applications, and optical applications. With recent supply recovery, thallium prices have surged initially but later retreated. Germanium's primary demand includes fiber optic communications (30%) and PET catalysts (25%). Since 2017, germanium demand has recovered from a trough, causing prices to rise and then pull back. Selenium's main demand comes from metallurgy (40%) and agriculture and animal health (20%). Since 2019, a tightening supply-demand balance in selenium ore has pushed prices upward in a fluctuating manner. Tellurium's primary demand is from solar cells (60%). Since 2017, supply-demand conditions for tellurium ore have tightened, leading to a price increase after a period of bottom consolidation. Rhenium's main demand is for high-temperature turbine engine components (80%). Since 2020, rising demand for rhenium ore has triggered a rebound in prices from their lows.
Preparation, Applications, and Supply-Demand Status of Sputtering Targets
Sputtering targets utilize high-velocity, high-energy particle beams to bombard the solid target surface, causing atoms to detach and deposit on a substrate surface, forming a thin electronic film. Sputtering targets come in two types: planar targets and rotary targets. By 2024, China's high-performance sputtering target market had grown to RMB 46.7 billion, reflecting an average annual growth rate of 12.89%. Looking ahead, the scale is expected to reach RMB 72 billion by 2029. Indium tin oxide (ITO) targets, ceramic compound targets formed by mixing indium oxide and tin oxide powders, are primarily used to produce flat-panel displays and HJT cells, offering advantages such as high light transmittance, excellent electrical conductivity, and favorable etching performance. China's ITO target demand from the flat-panel display industry is projected to grow to 1,210 tons by 2024, with an average annual growth rate of 13.62%. Global HJT cell shipments are forecast to reach 77 GW by 2025, representing an average annual growth rate of 173.84%. In 2024, actual HJT cell shipments are expected to reach 30 GW, corresponding to a global market size of 420 tons for ITO targets used in HJT cells. Listed companies engaged in scattered metal production in their 2025 semi-annual reports include: gallium producers Yunnan Germanium, Sinomine Resource Group, and Zhongjin Lingnan; indium producers Yunnan Germanium and Zhuzhou Smelter Group; germanium producers Yunnan Chihong Zinc & Germanium, Yunnan Germanium, Sinomine Resource Group, Zhongjin Lingnan, and Luoping Zinc & Electricity; tellurium producer Hunan Silver; and rhenium producer Saiens. No listed companies are currently involved in thallium or selenium production. Key risks include price volatility of scattered metals and sputtering targets, supply chain disruption risks, and substitution risks.
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