The Zhitong Finance App learned that Cathay Pacific Haitong released a research report stating that China's gallium, germanium, and indium resource reserves account for 80% to 85%, 40.7%, and 72.73% of global resource reserves, respectively; by 2024, the scale of China's high-performance sputtering targets has increased to 46.7 billion yuan, an average annual increase of 12.89%, and is expected to reach 72 billion yuan in 2029. Listed companies involved in the production of disperse metals in the 2025 semi-annual report cover topics such as gallium, indium, germanium, tellurium, and rhenium. Disperse metals and targets are important components and supporting materials for modern high-tech new materials, and the high-end preparation industry will promote the rapid development of domestic new quality productivity and the continuous expansion of import substitution.
Cathay Pacific Haitong's main views are as follows:
Overview of scattered metals and their relationships with metals, non-ferrous metals, and rare metals
1) Disperse metals usually include 7 elements, including gallium (Ga), indium (In), thallium (Tl), germanium (Ge), selenium (Se), tellurium (Te), and rhenium (Re). Disperse metals play an irreplaceable role in traditional fields and in strategic emerging industries. According to the “Overview of China's Dispersive Metal Ore Resources”, citing data such as the “US Geological Survey,” China's gallium, germanium, and indium resource reserves account for 80% to 85%, 40.7%, and 72.73% of the world's resource reserves, respectively. 2) Metals include ferrous metals, non-ferrous metals, and rare metals. 3) Rare metals also include five major types of metals, including disperse metals.
Application and supply and demand status of scattered metal family genealogy
1) The main demand for gallium is integrated circuits (79%). In recent years, both supply and demand for gallium have boomed, causing the price to fluctuate at a high level. 2) The main demand for indium is ITO targets (70%). Demand for indium has been strong in recent years, causing its price to fluctuate and rise. 3) Thallium is widely used in high-temperature superconductivity, defense and military, optical applications, etc. The supply of thallium has recovered in recent years, causing prices to rise and fall. 4) The main demand for germanium is optical fiber communication (30%), PET catalysts (25%), etc. Demand for germanium has rebounded from the bottom since 2017, causing its price to rise and fall back. 5) The main demand for selenium is metallurgy (40%), agriculture and animal health (20%), etc. Since 2019, selenium ore supply and demand have been tight, which has caused prices to fluctuate upward. 6) The main demand for tellurium is solar cells (60%). Since 2017, supply and demand for tellurium ore have been tight, and its price has risen since consolidating from the bottom. 7) The main demand for rhenium is high temperature turbine engine components (80%). Demand for rhenium ore has risen since 2020, causing its price to bottom out and rebound.
Preparation, application and supply and demand status of sputtering targets
1) The sputtering target uses high-velocity particle beams to bombard the surface of the solid (target) so that their atoms leave and deposit on the surface of the substrate to form a surface electron film. Sputtering targets are divided into two types: planar targets and rotating targets. 2) By 2024, the scale of high-performance sputtering targets in China has increased to 46.7 billion yuan, an average annual increase of 12.89%. In the future, the scale of China's high-performance sputtering targets is expected to reach 72 billion yuan in 2029. An indium tin oxide target (ITO target) is a ceramic compound target formed by mixing indium oxide and tin oxide powder. It is mainly used to prepare planar displays and HJT batteries, and has the advantages of high light transmittance, good conductivity, and excellent etching performance. The ITO target capacity of China's flat display industry will grow to 1,210 tons in 2024, with an average annual increase of 13.62%. Global HJT battery shipments will grow to 77 GW in 2025, with an average annual increase of 173.84%. In 2024, actual shipments of HJT batteries are expected to reach 30 GW, corresponding to the market size of 420 tons in the global ITO target industry for HJT batteries in 2024.
Listed companies involved in the production of sparse metals in the 2025 semi-annual report
1) Gallium: Yunnan Germanium Industry, China Mining Resources, Zhongjin Lingnan. 2) Indium: Yunnan Germanium Industry, Zhuye Group. 3) Thallium: none. 4) Germanium: Chihong Zinc-Germanium, Yunnan Germanium Industry, China Mining Resources, Zhongjin Lingnan, Luoping Zinc-Electric. 5) Selenium: none. 6) Tellurium: Hunan Baiyin. 7) Rhenium: Sainz.
Risk warning: Price fluctuation risk of scattered metals and target materials, risk of industrial chain breakdown and substitution risk, etc.