Anomalous stabilization of excitons by metallic proximity

Metallic environments are generally expected to suppress excitons through strong dielectric screening, yet their influence can differ in composite systems where metallic and insulating regions coexist. Here, we investigate excitonic states in PdxCu1-xCrO2 thin films across a percolation-driven metal-insulator transition. Optical spectroscopy and many-body GW calculations show that CuCrO2 hosts strongly bound excitons with a binding energy of about 489 meV. With increasing Pd substitution, the system approaches an insulator-to-metal transition near x = 0.5, consistent with the site-percolation threshold of a triangular lattice. In the pre-percolation regime, the excitonic resonance redshifts by 241 meV while the Tanguy continuum onset remains nearly unchanged, consistent with a substantial increase in exciton binding energy before metallization. An image-charge-based excitonic hydrogen model shows that isolated metallic regions can enhance electron-hole binding through image-charge interactions, whereas conventional screening is recovered once a continuous metallic network forms. Although this model provides a possible interpretation of the observed excitonic evolution, an alternative scenario in which metallic and excitonic responses originate from electronically distinct states and evolve independently cannot be excluded. These results reveal unusual metallic-excitonic coexistence near a percolation-driven metal-insulator transition and suggest nanoscale metallic proximity as a possible route for modifying excitonic interactions.