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.

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.

Metlen Aluminium Production Fell in 2025 as Power Costs Hit Metals Profits

Metlen

Metlen aluminium production declined in 2025 as higher European electricity costs squeezed margins across the Greek group’s metals business. The company produced 232,000t of aluminium during the year, down 2% from 2024.

Primary aluminium output fell by 4% to 176,000t, outweighing a 2% increase in recycled aluminium production to 57,000t. Alumina output also slipped by 1% to 855,000t.

Metlen aluminium production weakness shows how European smelters remain exposed to energy costs even when aluminium prices are firmer. Higher power prices reduced operating profits and weakened the earnings contribution from the metals segment.

Aluminium Revenue Rose but EBITDA Fell Sharply

Metlen’s metals revenue increased in 2025, but profitability fell because margins weakened. Aluminium revenue rose by 4% to €646mn, while EBITDA from aluminium dropped by 40% to €127mn.

Alumina showed a similar pattern. Revenue from alumina production increased by 4% to €206mn, but product-linked EBITDA fell by 9% to €79mn.

The result highlights the margin pressure facing European aluminium producers. Stronger aluminium prices, supported by trade tensions and US import tariffs, were not enough to offset higher electricity costs across the region.

Metlen’s metals unit contributed 13% of group revenue. However, weaker metals earnings weighed on the company’s broader industrial performance.

Gallium Project Adds Strategic Value Beyond Aluminium

Metlen’s group EBITDA fell by 30% to €753mn in 2025, despite a 25% increase in revenue to €7.1bn. The decline reflected project execution-related losses, mainly tied to the Protos strategic energy and resource project in the UK.

Revenue growth was supported by stronger performance in renewables, infrastructure, and concessions. This helped offset some weakness from metals, but did not prevent the group-wide earnings decline.

Metlen is also moving into critical materials. The company plans to produce up to 50 t/yr of gallium by 2028 after reaching full capacity, supported by a €90mn investment from the European Investment Bank.

This gallium project could give Metlen a more strategic role in Europe’s critical minerals supply chain. Gallium is important for semiconductors, power electronics, optics, defense systems, and advanced communications technologies.

The Metalnomist Commentary

Metlen’s results show that Europe’s aluminium industry still faces a structural energy-cost problem. The gallium project gives the company a higher-value strategic materials angle, but its aluminium margins will remain tied to power competitiveness.

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.

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.

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.