Indium is a rare, silvery-white semi-metal valued for its exceptionally low melting point and excellent wettability. It enables transparent, conductive coatings and plays a key role in modern semiconductors. Due to its scarcity, indium is now one of the most strategically important technology metals in the global high-tech industry, used in displays, solar cells, and 5G chips.
Source: Stockdio*
The recent upward trend in the indium market reflects a growing imbalance: on one hand, demand from display, semiconductor, and photovoltaic production is expanding, while on the other, primary supply remains highly concentrated. Beijing’s tightening of approval requirements for several strategic metals – including indium – further exacerbates supply chain risks. In parallel, European and North American initiatives to diversify critical raw material flows are driving up material procurement costs. In the short term, recycling quotas from ITO scrap limit extreme scarcity, but recovery remains technologically and economically challenging. Overall, the market faces a phase of sustained price firmness, where political decisions can impact prices as strongly as technological innovation boosts.
Due to its unique physical and chemical properties, indium is indispensable in a variety of high-tech applications. It combines good conductivity with transparency, forms low-melting alloys, and can be used as a doping or compound element in III-V semiconductors. Furthermore, it serves as an efficient thermal bridge and improves the longevity of optoelectronic components. Its versatility ensures that this material will remain a core component of green and digital key industries in the future.
The majority of globally produced indium goes into Indium Tin Oxide (ITO) coatings, which are applied as transparent and conductive films on LCD, OLED, and touch displays. ITO enables precise signal transmission with high light transmittance, forming the backbone of modern screens. The constant demand for larger, higher-resolution screens makes this sector the primary driver of consumption.
In Copper Indium Gallium Diselenide (CIGS) solar cells, indium serves as a central component of the absorbing semiconductor layer. CIGS modules offer high efficiencies with low material thickness and flexible substrate options, making them increasingly important for building-integrated and mobile solar solutions. At the same time, CIGS manufacturers compete for limited indium contingents, which sustainably influences the cost structure.
Compound semiconductors like Indium Phosphide (InP) and Indium Gallium Arsenide (InGaAs) enable ultra-fast data transmission in 5G networks, optical transceivers, and radar systems. Thanks to low electron masses, indium-based components achieve significantly higher cutoff frequencies and energy efficiency than silicon. The growing demand for cloud and AI data centers fuels this market segment. Research focuses on HEMT structures and photonic-integrated circuits, which continue to make indium indispensable.
Indium-containing solders and alloys melt below 160 °C, ensuring stress-free joining of temperature-sensitive components, such as in infrared sensors or medical devices. Their excellent wettability on glass, ceramics, and metal reduces production scrap. Additionally, indium acts as a diffusion barrier and improves heat dissipation in power electronic modules, enabling higher packing densities without reliability loss.
Thanks to its soft, ductile structure, indium can fill even the finest irregularities between a chip and heatsink as a thermal interface pad or micronized paste. The resulting thermal resistance is significantly lower than conventional polymer TIMs. In power electronics, laser diodes, and aerospace components, this extends component lifespan and increases operating limits. Manufacturers are therefore increasingly relying on indium-based solutions when maximum reliability is required.
Due to its unique physical and chemical properties, indium is indispensable in a variety of high-tech applications. It combines good conductivity with transparency, forms low-melting alloys, and can be used as a doping or compound element in III-V semiconductors. Furthermore, it serves as an efficient thermal bridge and improves the longevity of optoelectronic components. Its versatility ensures that this material will remain a core component of green and digital key industries in the future.
Primary indium is almost exclusively derived from zinc and lead smelting residues. The largest concentration is in East Asia: according to the USGS, China supplies about 70% of global production and has several state-of-the-art smelters where by-products are specifically processed. Other significant producers include the Republic of Korea, Japan, and Canada; Belgium acts as an important refining hub in Europe. Smaller quantities come from Poland, Peru, and Russia. Because indium does not form a standalone ore, the utilization of base metal smelters directly determines the available primary supply. In parallel, recycling capacities are emerging, but their market share – despite technological advances – is still well below one-third, meaning bottlenecks can occur at any time with booming demand.
Global indium demand is dominated by technology-intensive industries. More than half goes to manufacturers of flat panel displays and touch panels, followed by thin-film solar cells, power semiconductors, and special solders. Geographically, consumption is concentrated in East Asia, where South Korea and Japan are the largest consumers due to their strong display and semiconductor manufacturing. The USA also imports significant quantities for optoelectronics and defense applications, while Germany and other EU member states source indium for photovoltaics and high-frequency technology. In recent years, Malaysia has also gained importance as a rapidly growing location for display assembly. Since many of these countries have no significant primary production, international trade remains crucial for supply security. Substitution is currently only possible to a limited extent, which is why price spikes are often fully passed on to end products.
Private investors have several ways to profit from the indium market. Besides the physical purchase of smaller bars or ingot splits, acquiring warehouse receipts from specialized dealers who store the metal in bonded warehouses is an option. Alternatively, Exchange-Traded Commodities (ETCs) and structured certificates allow indirect price participation without logistical handling. Such vehicles typically track spot prices and are particularly suitable for investors betting on medium-term price impulses.
Investment can also be made through shares of zinc and multi-metal producers or through funds focused on strategic raw materials. Here, investors additionally benefit from management quality and dividends, but are also exposed to operational company risk. In general, the indium market is not very transparent and has limited liquidity; narrow spreads and a lack of futures markets complicate hedging strategies. Furthermore, geopolitical measures, such as export restrictions, pose sudden price risks. Therefore, an adequate portfolio breadth remains essential.
Indium is a soft, silvery-white semi-metal with atomic number 49. It does not form its own ore but is found as a trace element in zinc, lead, and copper ores, from which it is recovered during refining. Significant deposits are located in China, Korea, and Canada. Its rarity leads to indium being classified as a critical raw material.
Indium offers the rare combination of transparency and electrical conductivity when used in the form of indium tin oxide. ITO forms the indispensable electrode layer of modern displays and touchscreens. Additionally, in III-V compound semiconductors, indium increases charge carrier mobility, enabling high switching frequencies. Without indium, many high-speed data transmissions and razor-sharp screens would be technically difficult to achieve.
Yes. The largest secondary raw material stream comes from ITO coating waste and discarded flat screens. Specialized processing methods dissolve the oxide and return the metal to the value chain. However, the process is costly and energy-intensive, which is why the recycling rate is currently still below 30%. Technological advancements are expected to further increase the yield in the coming years.
Market liquidity is low, official futures exchanges are absent, and price discovery primarily occurs through bilateral trading. This can lead to wide spreads. Additionally, geopolitical risks such as export controls can trigger sudden supply shocks. Those who store indium must also factor in the costs of secure storage. Therefore, careful due diligence is indispensable for investors.
Researchers are experimenting with alternative transparent conductive oxides such as zinc oxonitrides or graphene-coated polymer films. However, these materials have not yet achieved the same combination of conductivity, transparency, and production maturity as ITO. Accordingly, they have only replaced indium in niche applications so far and have not achieved broad market penetration. Currently, indium therefore remains the industry standard for premium displays.
Source: Stockdio*
Receive exclusive updates on exciting commodity companies, market analyses, and investment opportunities directly in your inbox.
By submitting the form, you agree that your contact details will be processed for sending the newsletter.
Stay up to date: Our GOLDINVEST newsletter regularly informs you about current company news, market analyses, and exciting investment opportunities from the world of commodities.
Track the current price developments of key commodities such as gold, silver, copper, and lithium – including charts, market commentaries, and historical trends.
Here you will find in-depth background knowledge on commodities, markets, and exploration companies – concisely explained and easy to understand for beginners and professionals.
Our glossary explains key terms from the world of commodities, stock exchange, and exploration – ideal for quick reference and better understanding of our articles.
The leading platform for commodity news, market analyses, and company reports in the German-speaking region.
Copyright © 2025. GOLDINVEST Consulting GmbH. All rights reserved.
