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.

Metlen Gallium Production Marks a Strategic Step for European Supply

Metlen

Metlen gallium production marks an important strategic shift in Europe’s critical minerals landscape. The Greek company has produced gallium for the first time at its Agios Nikolaos plant as a by-product of bauxite processing. The initial 5kg volume is small, but the significance is far larger than the tonnage. As a result, Metlen gallium production has become an early sign that Europe is trying to rebuild domestic gallium capability.

This development matters because European gallium supply has remained heavily exposed to China for years. Europe has lacked commercial-scale primary gallium production since 2016. Meanwhile, China’s export controls have tightened the market and increased supply anxiety across high-tech sectors. Therefore, gallium production in Greece is emerging as a strategically important industrial response.

The project also stands out because it is linked to an existing industrial base. Metlen is not building a stand-alone concept without feedstock. It is extracting gallium from bauxite processing at an operating site. Consequently, Metlen gallium production benefits from stronger industrial logic than a purely greenfield critical minerals project.

European Gallium Supply Could Gain a Rare New Domestic Anchor

European gallium supply could gain a much-needed domestic anchor if Metlen executes its ramp-up successfully. The company plans to continue increasing output through 2026, with a further 5-10t expected in 2027. It then aims to reach 50 t/yr by 2028. That would make Greece one of the largest gallium suppliers outside China.

The scale of that future output is highly significant for Europe. Metlen has indicated that full-capacity production could cover all European gallium imports. That would not only improve supply security. It would also give Europe more leverage in a critical material tied to semiconductors, electronics, and defense-related technologies. Therefore, European gallium supply may finally be moving from dependence toward limited strategic resilience.

The timing also strengthens the project’s relevance. China’s gallium export controls since 2023 have helped squeeze global availability and lift prices. Buyers now understand that niche metals can quickly become geopolitical chokepoints. As a result, even relatively small western gallium projects now carry outsized strategic value.

Gallium Production in Greece Shows How Europe May Rebuild Critical Minerals Capacity

Gallium production in Greece also shows a practical model for Europe’s broader critical minerals strategy. Instead of relying only on new mining projects, Europe can extract value from existing refining and processing chains. That approach may be faster, less capital-intensive, and easier to integrate into current industrial systems. Meanwhile, it can still strengthen supply chain security in meaningful ways.

Financial backing reinforces that strategic direction. The European Investment Bank has approved €90mn in financing for the project, including bauxite mining modernization and the new gallium facility. That support suggests Europe is willing to fund targeted projects that improve industrial sovereignty. Consequently, Metlen gallium production is becoming more than a company milestone. It is also a policy signal.

The broader lesson is clear for metals markets. Critical minerals security is no longer just about owning reserves. It is about processing capability, by-product recovery, and industrial coordination. Therefore, gallium production in Greece may become a template for how Europe rebuilds selected materials capacity under geopolitical pressure.

The Metalnomist Commentary

This is a small-volume development with large strategic implications. Gallium may be a niche metal, but its supply concentration has made it highly important. If Metlen reaches scale, Europe will have proven that by-product recovery can become a credible tool in critical minerals strategy.

Metlen's Strategic Expansion: A New Era in Alumina and Gallium Production

Metlen

Greek conglomerate Metlen, previously known as Mytilineos, is set to revolutionize its production capabilities with a significant investment that marks its entry as one of the EU's first gallium producers while simultaneously enhancing its alumina output.

Enhancing Alumina Production and Introducing Gallium

Metlen has announced a massive €295.5 million investment in Agios Nikolaos, central Greece. This funding will drive the development of new bauxite mines, modernization of existing alumina production facilities, and the establishment of new gallium production units. The project is a strategic move to increase Metlen's alumina production from 865,000 tonnes to 1.27 million tonnes annually and initiate gallium production at a rate of 50 tonnes per year.

Boosting European Supply Chains and Reducing Dependency

This investment comes at a crucial time as European gallium prices have surged due to recent restrictions on Chinese exports to the US. Metlen's initiative aims to position Greece as a leading supplier of gallium outside China, enhancing the EU's strategic autonomy in critical raw materials. The new facilities will not only diversify the supply sources but also reduce Europe's dependency on external suppliers, addressing the vulnerability exposed by China's export controls.

Timeline and Future Outlook

Metlen plans to kick off bauxite production next year, with the expanded alumina and new gallium facilities expected to be operational by 2027. Full-scale production is projected to commence by 2028, significantly boosting Greece’s role in the global metals market.

Crown warns aluminum can supply will tighten through 2025

Crown Holdings

Crown says aluminum can supply will tighten through late 2025 as demand outpaces capacity. The aluminum can supply outlook reflects stronger North American and European orders despite Asian tariff headwinds. As a result, Crown will boost efficiency and expand plants to protect aluminum can supply.

Demand growth offsets Asia weakness

Crown reports second-quarter growth across key end markets. North American beverage can shipments rose 1pc from the first quarter. European beverage can volumes increased 7pc, while North American food cans gained 5pc. However, Asia-Pacific volumes declined on tariff-driven weakness. Crown notes tariffs did not hit its Americas or European markets.

Capacity additions in Brazil and southern Europe

Crown will add a third line at Ponta Grossa, Brazil. The project lifts capacity to 3.6bn cans a year from 2.4bn. Commercial production is targeted for the third quarter of 2026. Meanwhile, Crown is modernizing Korinthos, Greece. It will also add a new line at a southern Europe site to be named. These moves aim to relieve regional tightness and cut logistics bottlenecks.

Stronger can demand supports upstream aluminum coil and coating suppliers. Therefore, brand owners should secure 2025-2026 volumes early. Crown’s efficiency push and brownfield upgrades should help balance regional imbalances over time.

The Metalnomist Commentary

Crown’s expansion signals sustained beverage packaging growth despite Asian softness. Expect contract pricing to favor reliable converters until new lines start. Watch Brazil and Greece timelines closely; any slippage could amplify near-term tightness.

Metlen and Rio Tinto Sign Strategic Bauxite and Alumina Supply Deal

Metlen

Long-Term Agreement Strengthens Supply Chains and Expands Alumina Trade

Metlen Targets Alumina Growth with €295.5mn Investment in Greece

Greek aluminium and energy conglomerate Metlen, formerly known as Mytilineos, has signed a long-term supply agreement with Rio Tinto, the Anglo-Australian mining giant. The deal ensures mutual access to critical raw materials, reinforcing both firms' strategic positions in the aluminium value chain.

Rio Tinto to Deliver Bauxite from Guinea Starting 2027

Under the agreement, Rio Tinto will supply Metlen with 14.9 million tonnes of bauxite over 11 years, sourced from the CBG mine in Guinea. This move secures a steady bauxite flow for Metlen, aligning with its downstream processing plans. Simultaneously, Metlen will provide Rio Tinto with 3.9 million tonnes of alumina across eight years, with a potential three-year extension.

Both supply streams are scheduled to begin in 2027, positioning both companies for long-term operational synergy.

Greek Expansion to Boost Alumina Capacity by 400,000t/yr

Metlen also confirmed a €295.5 million investment to expand its alumina production at Agios Nikolaos, Greece. This will add 400,000 tonnes/year to its current capacity of 865,000 tonnes, solidifying Metlen’s presence in the global alumina market.

The investment package includes upgrades to energy and transport infrastructure and new gallium production facilities. These developments will bolster Metlen's vertical integration and export potential, particularly as global alumina demand rises.

Record Financials Back Strategic Growth Plan

In 2024, Metlen achieved a record EBITDA of €1.08 billion, up 7% year-over-year. Although net profits dipped slightly to €615 million, the metals division surged, posting €297 million in EBITDA, driven by a 46% rise in alumina prices and a 7% increase in aluminium prices.

While the energy segment saw a 1.7% decline in EBITDA to €753 million, the overall performance reinforces Metlen’s financial strength ahead of its expansion and supply commitments with Rio Tinto.

The company stated the deal will deliver dual benefits: securing upstream bauxite supply and maximizing profit through expanded alumina exports under competitive global terms.

US Copper Scrap Exports Surge by 17% in October

US Copper Scrap

US copper scrap exports witnessed a remarkable 17% growth in October 2024 compared to the previous year, driven by increases in @1 and @2 copper shipments.

Strong Year-Over-Year Growth in Exports

The United States exported nearly 26,200 metric tonnes of copper scrap in October 2024, a significant rise from approximately 22,500 tonnes during the same period in 2023. This marks the 12th consecutive month of year-over-year increases, hitting the highest monthly total since May 2024.

However, the rise in total exports was contrasted by a 4% decline in bare bright copper scrap shipments, which fell to approximately 6,700 tonnes. Notable reductions in exports to Greece and South Korea contributed to this decline.

@1 and @2 Copper Scrap Lead Export Growth

Exports of @1 copper scrap surged by an impressive 31%, reaching nearly 10,000 tonnes. China was the primary driver, with an additional 1,800 tonnes compared to last year. While exports to Germany saw a decline, China’s demand more than compensated for the dip.

Similarly, @2 copper scrap exports climbed by 21%, surpassing 9,400 tonnes. The growth was fueled by heightened deliveries to major importing nations such as China, Malaysia, and Belgium.

Copper Prices and Market Trends

The October average for CME copper futures reached $4.42 per pound, marking an 81¢ increase from October 2023 and the highest monthly average since June 2024. Meanwhile, Asian @1 copper scrap discounts widened to 19.5¢/lb under CME prices, compared to 11¢/lb under in the previous year.

The elevated exchange prices, coupled with optimism for a stronger Chinese economy, drove higher consumer costs, averaging 73¢/lb above last year. The market responded to policy signals from China’s Ministry of Finance, including potential support for the real estate sector. These measures briefly boosted copper demand expectations, although the rally was short-lived. Market participants remain hopeful for further economic stimulus to drive China closer to its 5% growth target.

EIB to invest €90mn in Metlen gallium plant to rebuild Europe’s supply

Metlen gallium

EIB to invest €90mn in Metlen gallium plant as Europe pushes to secure critical minerals. The financing supports a new gallium facility in central Greece. As a result, EIB to invest €90mn in Metlen gallium plant signals faster EU-backed industrial reshoring.

Metlen will modernize bauxite mining and add gallium recovery as a by-product of processing. Meanwhile, the project targets commercial-scale output outside China. EIB to invest €90mn in Metlen gallium plant also strengthens the aluminium value chain in Europe.

Europe restarts gallium production after years of dependence

Europe has lacked commercial-scale gallium production since 2016. Germany and Hungary previously supplied the market from bauxite by-products. However, Europe now relies heavily on imports for semiconductor and defense applications.
China tightened gallium exports in 2023 under new controls. Therefore, buyers faced tighter availability and higher procurement risk. Prices rose sharply as supply flexibility narrowed.

What 50 t/yr gallium means for semiconductors and defense

Metlen plans to reach up to 50 t/yr of gallium by 2028. This volume could cover Europe’s current import needs. As a result, chipmakers and advanced materials users gain a nearer supply option.

Gallium supports high-performance semiconductors such as GaN and other critical technologies. Meanwhile, defense and energy transition demand increases scrutiny on supply security. The project must still execute on ramp-up, recovery yields, and operating stability.

The Metalnomist Commentary

Europe is moving from policy talk to industrial capacity in gallium. However, the market will judge this project on ramp reliability and cost discipline. If Metlen delivers, Europe gains leverage in a tightly controlled metal.

Kazakhstan’s ERG to Launch Gallium Production from 2026

ERG

ERG Targets Diversification of Gallium Supply

Kazakhstan’s Eurasian Resources Group (ERG) announced plans to produce gallium starting in 2026. The company will invest $20mn to establish production capacity of up to 15 t/yr, derived as a by-product of bauxite processing. ERG stated that it aims to meet a substantial share of OECD demand for gallium, strengthening supply chain resilience and reducing reliance on China, which currently dominates the market.

Global Gallium Market Dynamics

China remains the largest gallium producer, with an estimated 1,000 t/yr of capacity. However, Beijing’s decision in 2023 to add gallium to its list of export-controlled dual-use items has reshaped the market, limiting international availability and driving up prices. The 2024 export ban to the US further underscored supply chain vulnerabilities, intensifying the search for alternative suppliers. ERG’s entry into gallium production places Kazakhstan alongside other emerging players, including US-based Indium, which recently achieved test volumes in partnership with Rio Tinto, and Greece’s Metlen, planning up to 50 t/yr by 2028.

The Metalnomist Commentary

ERG’s move into gallium reflects mounting global pressure to diversify critical mineral supply chains away from China. While the scale of its planned output remains modest compared to Chinese production, even incremental volumes could prove strategically significant in stabilizing OECD markets. Success will depend on ERG’s ability to secure offtake agreements and integrate into high-tech industries reliant on gallium for semiconductors and optoelectronics.

EU Russia Sanctions Face Delay as Hungary Links Veto to Druzhba Oil Flows

Hungary

EU Russia sanctions are facing another political delay after Hungary signalled it would block the bloc’s 20th sanctions package unless Ukraine allows Russian crude flows to resume through the Druzhba pipeline. The dispute shows how energy security, foreign policy, and sanctions enforcement remain tightly connected inside Europe’s wartime decision-making system.

The proposed package would expand pressure on Russia’s energy and maritime networks. However, Hungary’s position has shifted attention away from the package itself and toward crude supply interruptions affecting Hungary and Slovakia. Pipeline deliveries through Druzhba have been halted since 27 January after an attack on a pumping station in Ukraine.

The standoff highlights a deeper weakness in EU Russia sanctions policy. The bloc is trying to tighten restrictions on Russian trade while still managing member states with different exposure to Russian energy infrastructure. As a result, sanctions decisions remain vulnerable to national energy concerns and political bargaining.

Druzhba Dispute Tests EU Sanctions Unity

Hungary’s veto threat has frustrated other EU members because its objections are not directly related to the content of the sanctions package. Budapest says it will not support decisions important to Kyiv until Ukraine resumes oil transit to Hungary and Slovakia through Druzhba. That position has drawn criticism from Germany and Poland, both of which have called for stronger solidarity with Ukraine.

The disagreement also follows Hungary’s move to block a €90bn EU loan for Ukraine. This widens the dispute from sanctions policy into broader financial and diplomatic support for Kyiv. For Brussels, the issue is not only whether one package passes, but whether the EU can preserve a credible common front.

EU Russia sanctions require political cohesion as much as legal design. When one member state uses veto power over unrelated disputes, it weakens the predictability of the bloc’s sanctions process. That uncertainty matters for energy traders, shipowners, insurers, ports, and industrial buyers exposed to Russian-linked commodity flows.

Maritime Restrictions Could Expand Pressure on Russian Trade

The proposed 20th package appears to move deeper into maritime enforcement. Earlier negotiations had already faced resistance from maritime nations such as Malta and Greece, while Cyprus has been chairing the talks. The package reportedly includes a ban on maritime shipping services and restrictions affecting non-Russian ports for the first time.

This would mark an important escalation in EU Russia sanctions. Targeting maritime services can affect shipping access, insurance, port calls, and logistics linked to Russian crude and other commodities. It also raises the compliance burden for companies operating across complex trade routes where cargo origin, ownership, and service providers may be difficult to verify.

The draft package also includes Russia’s crude ports at Murmansk and Tuapse. That would strengthen the EU’s effort to restrict Russia’s ability to move energy exports through established seaborne channels. However, the bloc’s challenge is clear: stronger maritime sanctions are only effective if member states can align policy, enforcement, and commercial risk management.

The Metalnomist Commentary

The Hungary veto shows that sanctions policy is now part of Europe’s wider energy-security architecture. The industrial risk is that fragmented politics can slow enforcement just as Russia-linked commodity flows become harder to monitor.