Metlen Gallium Project Positions Greece as New EU Critical Materials Hub

Metlen Gallium Project

Metlen gallium project approval gives Greece a stronger role in Europe’s effort to build secure supplies of critical raw materials. The Greek industrial group has secured government approval for its strategic investment to develop gallium production alongside expanded bauxite mining and alumina refining.

Metlen gallium project benefits will include grants and tax incentives totalling around €118mn. These incentives come on top of Metlen’s planned €300mn investment in the gallium production project.

Metlen gallium project development is integrated into Aluminium of Greece operations in central Greece. The structure allows gallium to be recovered as a by-product of alumina refining, linking critical minerals supply to an existing aluminium value chain.

The project matters because gallium is essential for semiconductors, defence systems, artificial intelligence applications and photovoltaics. Europe’s dependence on imported gallium has become more exposed since China imposed export controls in 2023.

Gallium Recovery Strengthens Europe’s Midstream Supply

Metlen produced gallium for the first time in January and plans to scale output over the next two years. Production is expected to continue rising in 2026, with an additional 5-10t forecast for 2027.

The company aims to reach full capacity of around 50 t/yr by 2028. At that level, Greece could become one of the largest gallium producers outside China.

The output could also be sufficient to cover current European import requirements. That would make the project strategically important for Europe’s semiconductor, defence and clean technology sectors.

Gallium recovery from alumina refining is especially significant because it adds value to an existing industrial process. Instead of relying only on new mines, Europe can recover critical materials from established aluminium operations.

This approach improves supply-chain efficiency. It also shows how by-products from major metals industries can become strategic feedstocks for advanced manufacturing.

EU Incentives Back Critical Raw Materials Security

The project has been approved under Greece’s Strategic Investments framework. It is also included under the Clean Industrial Deal State Aid Framework, which supports clean energy, industrial decarbonisation and clean technology.

The European Investment Bank has approved €90mn in financing to support the gallium facility and modernisation of upstream bauxite mining. This gives the project both national and EU-level policy support.

The investment aligns with Europe’s effort to reduce dependence on China for critical minerals. China dominates global gallium production, and its export controls have tightened supply and pushed prices higher.

For the EU, the Metlen project provides more than gallium volume. It creates a domestic industrial route from bauxite and alumina into critical semiconductor materials.

That model could become important for other by-product metals. Europe has limited time to build resilient supply chains, so projects connected to existing industrial assets may offer faster results than standalone greenfield developments.

The Metalnomist Commentary

Metlen’s gallium project shows how Europe can turn existing aluminium infrastructure into critical minerals capacity. The strategic lesson is clear: by-product recovery may become one of the fastest routes to reducing dependence on China.